Stock Market Today, July 23: Tesla Drops 15%, Leading Tech Stock Slide

Tesla plunged 15% on July 23, 2026, leading a broad selloff in technology stocks as investors questioned the return on massive AI infrastructure spending. Alphabet dropped 7% following its earnings report, contributing to a 2.15% decline in the Nasdaq Composite. The S&P 500 fell 1.21% and the Dow shed 0.97%.

The risk-off move intensified as Treasury yields and oil prices climbed, adding pressure to growth-oriented equities. While industrials and healthcare sectors showed relative resilience, the tech-heavy indices bore the brunt of the rotation. The dual headwinds of rising yields and energy costs compounded concerns about margin compression at companies with high capital expenditure tied to AI buildouts.

Tesla's 15% single-day drop represents one of the electric vehicle maker's sharpest declines in recent memory, coming alongside broader skepticism about tech valuations in a higher-rate environment. The confluence of sector-specific earnings disappointments and macro pressures created a particularly challenging environment for momentum names.