Oil Spike Pressures Tech and Broad Market

The move in crude is also feeding through to sector rotations. Energy-linked assets are holding up better, with the Brent-tracking BNO ETF jumping to $53.45 on July 23, while broad equity sentiment has weakened, according to Adalytica’s S&P 500 trade signals, which show neutral sentiment but a 40-point drop over the past week.

At the same time, the selloff in megacap growth names is hitting index levels and investor confidence. Tesla plunged to $319.69 on heavy volume of 115.2 million shares, while Alphabet fell to $317.69, both sharp moves that reflect how quickly crowded tech leadership can unwind when macro pressure rises and positioning turns defensive.

For Tesla, the decline leaves the stock well below its 50-day moving average of about $405 and under its 200-day average near $415, with RSI readings at 29 pointing to technically oversold conditions. Alphabet is also under pressure, falling below its 50-day average of about $366, while its RSI slipped to 29.6, another sign of momentum damage.

The broader backdrop is one of rising caution across assets. Adalytica’s dollar trade signals show neutral sentiment even as the U.S. currency has weakened sharply on the day, while crude’s earlier spike has kept energy a live inflation risk and renewed concern about tighter financial conditions.

That combination matters for investors because it tightens the screws on everything from earnings multiples to capital spending assumptions. Higher oil can squeeze consumers and companies outside the energy patch, while a tech-led selloff can pull the whole market lower as the biggest index weights lose altitude.

The next catalyst is whether crude holds near triple digits and whether earnings or macro data can calm fears that inflation and rates will stay higher for longer.