Morning Business Report: Stocks pull back as oil rises, tech moves and consumer trends shape markets

Oil prices have climbed back above $100 a barrel amid ongoing concerns involving Iran.

(LILAMAX)- Markets are pulling back after recent record highs, as investors weigh strong gains driven by artificial intelligence against rising geopolitical tensions.

Oil prices have climbed back above $100 a barrel amid ongoing concerns involving Iran, raising fears about inflation and influencing expectations ahead of the next Federal Reserve meeting.

Stocks are expected to open lower as uncertainty grows.

On Wall Street, IBM shares dropped 9% despite reporting a solid quarter. Investors reacted negatively after the company declined to raise its growth outlook.

Meanwhile, Tesla stock fell more than 3% after announcing a massive $25 billion investment plan. The spending will expand EV production, scale artificial intelligence efforts and support projects including robotaxis and humanoid robots.

In the tech sector, Google says artificial intelligence is rapidly transforming its operations. The company reports that about 75% of its new code is now generated by AI, with expectations that figure could reach 95% within five years.

On the consumer side, Starbucks is seeing a boost from its loyalty program.

Promotions like “Free Mod Mondays,” reusable cup rewards and birthday perks are helping drive traffic. CNBC reports that in 2025, transactions tied to the rewards program accounted for 60% of the company’s revenue.

The latest developments highlight a mixed economic picture—strong innovation and consumer engagement, tempered by global uncertainty and market volatility.