The U.S. stock market presented a mixed picture on Thursday, July 24, 2025, as investors navigated a flurry of corporate earnings reports and ongoing developments on the trade front. While the tech-heavy Nasdaq Composite and the broader S&P 500 managed to eke out gains, hitting new record highs, the Dow Jones Industrial Average lagged, pulled down by disappointing results from several of its components. This divergence highlights a market grappling with strong performance in certain sectors, particularly technology and artificial intelligence, against headwinds in traditional industries and lingering trade uncertainties.
Major Market Indexes Performance
The S&P 500 (SPX) edged up 0.1% to close at 6,363.65, marking another all-time high and its 12th record close this year. In intraday trading, the benchmark even touched a new all-time high of 6,360.64. This resilience was largely attributed to strength in big tech companies and positive trade headlines.
The Nasdaq Composite (IXIC) continued its upward trajectory, gaining 0.2% to close at 21,057.96, also adding to its record and marking its first-ever close above the significant 21,000 threshold. This surge was significantly backed by a strong performance from major AI chip manufacturers, underscoring the ongoing enthusiasm for artificial intelligence advancements.
In contrast, the Dow Jones Industrial Average (DJI) experienced a downturn, falling 0.7% or 316.38 points to settle at 44,693.91. This decline came despite the index having clawed above 45,000 the previous day, its first close above that level since December 2024. The blue-chip index was weighed down by losses in several key industrial and auto sector stocks.
The Russell 2000 (RUT) index of smaller companies also saw a decline, falling 1.4% to 2,252.13, indicating broader market weakness outside of the large-cap tech sector. Sector-wise, 10 out of 11 broad sectors of the S&P 500 ended in positive territory, with the Energy Select Sector SPDR (XLE) and Industrials Select Sector SPDR (XLI) rising 1.6% and 1.8% respectively. However, the Utilities Select Sector SPDR (XLU) fell 0.8%. The fear-gauge CBOE Volatility Index (VIX) was down 6.9% to 15.37, suggesting a relatively calm market despite the mixed performance.
Major Stock News and Developments
Corporate earnings dominated headlines, leading to significant stock movements. Alphabet (GOOGL), the parent company of Google and YouTube, saw its stock climb over 3% after delivering a stronger profit than analysts expected for the latest quarter. The tech giant announced plans to increase its AI infrastructure spending by an additional $10 billion, signaling a bullish commitment to its long-term leadership in the AI space. This strong performance helped lift sentiment across the Nasdaq and the broader tech sector.
Conversely, Tesla (TSLA) shares sank nearly 9% in volatile trading. The electric vehicle maker's stock was hit by worries about how much damage its brand has taken due to CEO Elon Musk's foray into politics, and a cautious outlook despite hitting earnings estimates. Tesla also reported a second consecutive quarter of falling auto revenue.
International Business Machines (IBM) plunged 10.4% despite reporting a stronger profit than expected. Analysts pointed to slowing growth in its software business as a key concern, which missed revenue expectations. Similarly, chemical company Dow Inc. (DOW) tanked 17% after reporting a far bigger loss than expected in its second quarter and halving its quarterly dividend to 35 cents a share.
Fast-casual chain Chipotle Mexican Grill (CMG) dropped 14.3% after reporting its second consecutive quarterly sales decline and cutting its full-year outlook. American Airlines (AAL) lost 7.9% despite beating Q2 profit expectations, as it forecast a loss for the summer quarter and lowered its full-year guidance, citing fuel price volatility and softening domestic travel demand.
On the positive side, AI chip manufacturing behemoths Nvidia Corp. (NVDA) and Advanced Micro Devices Inc. (AMD) advanced 2.3% and 2.5%, respectively, continuing to benefit from robust demand in the AI sector. ServiceNow (NOW) jumped 7% in after-hours trading after raising its full-year guidance, driven by increasing demand for its AI business platform and better-than-anticipated results. Other companies reporting strong Q2 results included Thermo Fisher Scientific Inc. (TMO), which surged 9.1%, General Dynamics Corp. (GD) climbing 6.5%, and Boston Scientific Corp. (BSX) surging 4.5%. AT&T Inc. (T) also saw a 1.2% rise after surpassing its Q2 earnings estimates.
Post-market close, several companies released their earnings. Intel (INTC) reported a $2.9 billion loss after announcing its exit from Europe, though its stock erased some of its day losses after hours. Gold miner Newmont (NEM) bested estimates, with its stock up 2.44% after its announcement, thanks to higher gold prices. Deckers (DECK) also saw its stock jump as much as 18% after its report. Other notable after-hours reporters included WSFS Financial (WSFS), Weyerhaeuser (WY), VeriSign (VRSN), and Ovintiv (OVV.
Upcoming Market Events
Investors are closely monitoring several key events that could influence market sentiment in the coming days and weeks. Trade developments remain a significant focus, with positive news emerging from trade deals with Japan and ongoing negotiations with the European Union and China. However, an August 1 deadline for the U.S. to impose hefty tariffs on imports looms, which analysts warn could spark inflation and impact corporate profits.
On the economic data front, Thursday's schedule included the release of weekly jobless claims, which fell to a three-month low of 217,000, signaling continued labor market strength without overheating. Preliminary purchasing managers' index (PMI) data for July and June new home sales reports were also released, providing further insights into the economic landscape. These reports are crucial as they could offer clues on whether the Federal Reserve might adjust its stance on interest rates in the near future. Investors are also keenly awaiting the Federal Reserve's next interest rate decision, especially following President Trump's visit to the Fed.
Overall, July 24, 2025, showcased a market in transition, with the robust performance of technology and AI-driven companies providing a bullish counterpoint to the struggles faced by some traditional industrial and consumer discretionary firms. The interplay of corporate earnings, economic indicators, and evolving trade policies will continue to shape the market's direction in the short term.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.