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Update: Equities Fall For Third Day as Oil Stretches Gains Amid Middle East Anxiety

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Update: Equities Fall For Third Day as Oil Stretches Gains Amid Middle East Anxiety

(Updates with market moves at the end of the day, and other changes, if any.)

US stocks fell for a third straight session on Tuesday and oil prices continued to advance as Middle East developments kept traders on edge.

The Nasdaq Composite tumbled 1.3% to close at 26,289.71, while the S&P 500 lost 0.7% to 7,691.76. The Dow Jones Industrial Average edged down 0.2% to 53,343.40. Most sectors were in the red, led by technology, while energy paced the gainers.

West Texas Intermediate crude oil rose 0.6% to $85 a barrel, while Brent added 0.1% to $90.99. Both benchmarks were on track for their third consecutive day of gains.

President Donald Trump said Tuesday that the US is not in talks with Iran, a day after a 60-day ceasefire between the two countries expired.

Trump claimed that the Strait of Hormuz was "open and operating."

Iran's top negotiator, Mohammad Bagher Ghalibaf, said Tuesday that the Strait of Hormuz will remain shut until the US meets the conditions of the interim deal signed in June, Reuters reported, citing state media.

US Treasury yields were lower, with the 10-year yield falling 1.6 basis points to 4.71% and the two-year yield down 0.7 basis point at 4.18%.

Meta Platforms (META) shares slumped nearly 4.5% as a social media addiction trial brought by 29 states got underway.

Targa Resources (TRGP) jumped 7.1%, the best performer on the S&P 500. Late Monday, the company said it struck new 20-year fee-based, midstream agreements to support ExxonMobil's (XOM) development of its Permian Basin acreage. ExxonMobil rose 2.5%.

Amer Sports (AS) lifted its full-year outlook as the Finnish sports equipment company reported second-quarter results above market estimates, buoyed by double-digit revenue growth across all of its segments. The stock rose 3.2%.

US housing starts fell more than expected in July amid declines in both single and multi-family units, while building permits jumped to a five-month high, government data showed Tuesday.

US pending home sales dropped 2.3% sequentially in July, data from the National Association of Realtors showed, while consensus was for sales to be flat in a survey compiled by Bloomberg.

US industrial production increased less than expected in July as manufacturing growth decelerated, Federal Reserve data showed.

Spot gold fell 1.6% to $4,343.38 per troy ounce, while silver shed 3.9% to $63.66 per ounce.

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Alibaba Launches AI Music Generation Model to Rival Suno, Udio
US Markets

Alibaba Launches AI Music Generation Model to Rival Suno, Udio

Alibaba Group (HKG:9988) has launched a beta version of its new AI music-generation model called HappyShrimp 1.0, according to a press release on Monday.The model, developed by Alibaba's Token Hub business group, converts texts to "a fully produced song" containing melody, arrangement, lyrics, and vocals, the Chinese tech company said."HappyShrimp 1.0 allows users to generate complete tracks from a single prompt, whether based on an emotion, a story concept, or a target genre," Alibaba said, noting that the model can produce tracks across genres like Chinese style, pop, R&B/soul, hip hop, rock, funk, electronic, classical, and jazz.The company did not disclose how it plans to monetize the music model. HappyShrimp 1.0 would likely rival AI music startups like Suno and Udio, as well as Google's MusicFX and Meta's AudioCraft.The launch expands Alibaba's generative AI offerings into the audio sector, further boosting its Cloud business. In the fiscal year ended March 31, Alibaba Cloud's external revenue growth accelerated to 40%, with AI-related products making up 30% of the total.Earlier this month, Alibaba Cloud launched Qwen3.8-Max, which it described as its "largest and most capable flagship model to date." The model features 2.4 trillion parameters and supports a context window of up to 1 million tokens."Alibaba's full-stack AI investments have progressed from incubation to commercialization at scale," Alibaba CEO Eddie Wu said in May.At the time, the company said it expects AI model and application services annualized recurring revenue to top 10 billion yuan in the June quarter and 30 billion yuan by the end of the year.Alibaba expects AI-related product revenue to surpass 50% of Cloud Intelligence Group's total external revenue to become the unit's primary growth driver.In March, Wu said Alibaba aims to surpass $100 billion in combined cloud and AI external revenue over the next five years.

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Update: Equities Fall, Oil Rallies as US-Iran Ceasefire Expires
US Markets

Update: Equities Fall, Oil Rallies as US-Iran Ceasefire Expires

(Updates with market moves at the end of the day, and other changes, if any.)Stocks on Wall Street fell Monday and oil prices advanced as a ceasefire between the US and Iran expired, with both sides showing no interest in an extension.The S&P 500 and the Dow Jones Industrial Average shed 0.5% each to close at 7,745.06 and 53,459.78, respectively. The Nasdaq Composite lost 0.3% to 26,644.91. Except energy, all sectors were in the red, led by communication services and consumer staples.West Texas Intermediate crude oil was up 2.4% at $84.41 a barrel in Monday late-afternoon trade, while Brent rose 2.4% to $90.64.In June, the US and Iran agreed to a memorandum of understanding to end their war and negotiate a final deal. However, the truce apparently collapsed as tensions over the control of the Strait of Hormuz escalated.Iranian Foreign Ministry spokesman Esmail Baghaei ruled out extending the memorandum of understanding, according to a CNBC report that cited state news agency Tasnim.President Donald Trump warned that the US could attack Oman if the Gulf nation interferes with the blockade of Iranian ships in the Strait of Hormuz, The Wall Street Journal reported, citing an interview with Fox News.On Saturday, Israeli strikes in southern Lebanon left at least 11 people dead, Reuters reported, citing the Lebanese health ministry. Traffic through the strategic waterway slowed as three vessels operated by Abu Dhabi National Oil Co. were attacked in transit last week."Prices remained supported by renewed fighting in Lebanon and attacks on vessels in the Strait of Hormuz, raising concerns over regional supply disruptions and complicating prospects for a US-Iran deal," ING Bank said in a report Monday.US Treasury yields were higher, with the 10-year rate up 3.2 basis points at 4.73% and the two-year rate rising 1.3 basis points to 4.18%.In company news, JetBlue Airways (JBLU) shares slumped 7.3%, as Seaport Research Partners downgraded its rating on the air carrier's stock. JetBlue's balance sheet woes could worsen as the Strait of Hormuz appears unlikely to reopen anytime soon, potentially prolonging jet fuel volatility, Seaport said in a note.Shares of American Airlines Group (AAL), Southwest Airlines (LUV), United Airlines (UAL) and Delta Air Lines (DAL) were also in the red.Retail giant Walmart (WMT) is scheduled to release its latest financial results later this week, along with Home Depot (HD), TJX (TJX), Lowe's (LOW), Target (TGT), Ross Stores (ROST) and BJ's Wholesale Club (BJ).S&P 500 companies' annual growth in second-quarter earnings and revenue largely held steady week over week, Oppenheimer Asset Management said Monday.The Federal Reserve is scheduled to post minutes of its July policy meeting Wednesday, which will be assessed for fresh insight on the central bank's monetary policy. At the meeting, policymakers left interest rates unchanged in a divided decision, with three regional presidents calling for policy tightening.In economic news, homebuilder confidence in the US unexpectedly ticked higher this month, though builders continued to deal with rising construction costs amid a renewed surge in gas and diesel prices, the National Association of Home Builders and Wells Fargo said.Gold was up 0.9% at $4,475.40 per troy ounce, while silver advanced 1.7% to $66.20 per ounce.

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Housing, Childcare Consume Over Half of Typical US Family's Annual Income, Redfin Says
US Markets

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A typical working family spends more than half of its annual income on housing and childcare, though that share rises to 97% in Los Angeles, Redfin said Monday.Redfin compared the annual cost of buying a home and arranging childcare for one child with the median household income for the 100 largest metros in the US. Redfin used Winnie for childcare data.Housing and childcare costs consume 52% of median earnings nationwide, the report showed. Working families in Little Rock, Arkansas, have the lowest share at nearly 40%, while households spend nearly all, or 97%, of their annual income on housing and childcare in Los Angeles, California.Seven of the 10 least affordable metros are in California amid high home prices, while New York is ranked second on that list, Redfin said. Midwest and Southern metros are the most budget friendly due to affordable home prices and daycare."High-income metros like San Francisco and San Jose offer bigger paychecks, but those gains are often offset by extraordinarily expensive homes," Redfin Senior Economist Yingqi Xu said. "Meanwhile, markets with more affordable housing give working parents far more financial flexibility, even when local incomes are lower."The median US home price has doubled and childcare expenses have soared by 40% in the last decade, Redfin said."Families considering a move should weigh both of those big costs -- as well as job opportunities -- when deciding where to put down roots," Sara Mauskopf, chief executive of child care marketplace Winnie, said. "Families should also make sure childcare is actually available near where they want to live. If care is scarce or unaffordable, an otherwise affordable area may not be a practical place for a family with young children."Last week, National Association of Realtors data showed that existing home sales in the US fell more than expected last month as rising prices and mortgage rates continued to weigh on homebuying activity.