Tesla, Alphabet Earnings Fail to Impress as Tech Weakness Keeps Markets in Neutral

The first wave of earnings from the MAG7 (Tesla and Alphabet) has failed to satisfy investors, who remain skeptical about the outlook for further increases in costs and capital expenditures, despite positive revenue figures. The technology sector remains weak, and this will be one of the two main market movers in the coming weeks.

The other, unsurprisingly, is the evolution of the conflict in the Middle East and its implications for inflation expectations, monetary policy, and economic growth.

Market sentiment remains in neutral territory, as does the equity market, while pressure remains elevated in fixed income. The US dollar and oil are still showing strength. Futures point to a flat opening for the United States and a slightly positive start for Europe.

Financial markets sentiment

Financial markets are showing a neutral sentiment today. Intermarket analysis indicates a Market Health Score of 79/100, which remains positive. Across our intermarket dashboards, two signals continue to stand out: inflation expectations and the technology sector.

In a scenario where risk appetite remains positive, attention is shifting to the three “V” patterns emerging in the Oil/Gold, Commodities/Gold, and S&P 500/Nasdaq ratios. These patterns highlight two elements that could shape financial markets in the coming weeks:

• Inflation expectations are starting to rise again as the situation in the Middle East becomes more complicated.
• The technology sector remains weak, and the market’s reaction to Tesla and Alphabet earnings suggests that investors are now far more sensitive to costs than to revenues.

The combined effect of these two factors is resulting in a sideways trend in global equity markets, while fixed income is experiencing more pronounced volatility and has slipped below its long-term moving average, a signal that warrants close monitoring.

Our market weather map summarizes the situation through a scoring system: equities remain in neutral territory, technology is still below the 50-point threshold, the US dollar and oil are above 60 points, and fixed income remains in negative territory. Among the most notable seven-day changes, we highlight the 11-point increase in the score of the UK’s main equity index, supported for now by solid macroeconomic data and political developments, as well as strengthening momentum in the real estate sector.

Global Futures – Pre-Market Sentiment

Pre-Market Futures: Global futures indicate a moderately risk-on sentiment, with an average gain of +0.18%. US futures are slightly negative (-0.03%), European futures are slightly positive (+0.31%), and Asian futures are also slightly positive (+0.40%).

Macroeconomic calendar

On the macro front, today’s focus is the ECB meeting. The consensus expects rates to remain unchanged, but the key issue will be understanding what could happen in September and how the ECB is interpreting the renewed tensions in the Middle East. Also worth watching are Australia’s employment data, the June 2026 CFNAI update, Eurozone consumer confidence for July, the monetary policy decisions of the Turkish and South African central banks, and US weekly jobless claims.

On the earnings front, attention today shifts to Intel, Nokia, and BNP.

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NOTES AND WARNINGS

Data compiled by kbmeter.com. Analysis date: 23 July 2026 - 7:38 AM GMT+1
This content is provided for informational purposes only and should not be considered financial advice. All scores and assessments are based on the previous trading day’s closing prices. Futures indications refer to the date and time of the analysis.