NEW YORK, July 22 (Xinhua) -- U.S. stocks closed lower Wednesday as the market awaited second-quarter financial results from Alphabet and Tesla, while rising international trade tariffs and geopolitical oil pressures kept broader momentum in check.
The blue-chip Dow Jones Industrial Average edged down 6.06 points, or 0.01 percent, to finish at 52,218.58. The benchmark S&P 500 dipped 10.24 points, or 0.14 percent, to 7,498.96, while the technology-heavy Nasdaq Composite Index shed 146.3 points, or 0.57 percent, to close at 25,690.9.
Performance across the 11 primary S&P 500 sectors was divided, with six finishing in positive territory. Defensive and resource-oriented groups led the advance, as utilities and materials rose 2.29 percent and 1.45 percent, respectively. On the losing side, communication services and consumer discretionary led the laggards, sliding 1.29 percent and 0.84 percent, respectively.
The session's primary focus centered on the kickoff of the "Magnificent Seven" corporate reporting cycle following the closing bell. Investors are closely scrutinizing Alphabet's quarterly report for concrete evidence that aggressive capital spending on AI infrastructure is translating into measurable revenue monetization across its Search and Cloud divisions. Concurrently, market participants are evaluating electric vehicle pioneer Tesla.
In corporate developments, AI server hardware manufacturer Super Micro Computer provided a major boost to the technology sector, surging nearly 20 percent to pace the S&P 500. The optimism spilled over to industry peers, lifting Dell Technologies 9.32 percent and Hewlett Packard Enterprise 3.02 percent.
Elsewhere in corporate disclosures, energy equipment manufacturer GE Vernova dropped by 8.69 percent on downbeat results, while telecom provider AT&T rose 3.5 percent following a top-line beat.
On the trade policy front, global trade friction intensified as U.S. President Donald Trump indicated readiness to replace expiring temporary 10 percent universal tariffs with permanent structural duties, including a proposed 100 percent tariff on imported generic pharmaceuticals. Additionally, a new 25 percent tariff targeting Brazilian imports officially took effect on Wednesday, raising fresh concerns over international supply chain costs.
Geopolitical conflict continued to weigh on commodity markets as military engagement between the United States and Iran persisted. The persistent tension near the Strait of Hormuz drove global energy benchmarks higher. West Texas Intermediate crude for September delivery rose 2.95 percent to settle at 86.83 U.S. dollars a barrel on the New York Mercantile Exchange. Meanwhile, Brent crude for September delivery gained 3.36 percent to close at 94.07 dollars a barrel on the London ICE Futures Exchange.
