U.S. stock markets presented a mixed picture in midday trading on Thursday, July 24th, 2025, as investors navigated a flurry of corporate earnings reports and closely watched ongoing developments on the trade front. While the technology-heavy Nasdaq Composite (IXIC) and the broad-market S&P 500 (SPX) edged higher, the Dow Jones Industrial Average (DJI) found itself under pressure due to disappointing results from several of its components. The overall market momentum reflected a cautious optimism, largely fueled by progress in international trade negotiations and strong performances from key players in the artificial intelligence sector.
Leading the charge among the major indices, the S&P 500 (SPX) was up 0.3% in midday trading, building on its strong performance from Wednesday when it gained 0.8% to close at 6,358.91. This marked the S&P 500's 12th closing high for the year, and it even touched a new intraday all-time high of 6,360.64. The Nasdaq Composite (IXIC) also showed resilience, rising 0.3% midday, following a 0.6% gain on Wednesday to close at 21,020.02, its first close above the 21,000 threshold. This upward trajectory for the tech-laden index was significantly bolstered by major AI chip manufacturers and robust earnings from tech giants. The Nasdaq 100 futures (NDX) climbed 0.2% to 0.36% in early Thursday trading, indicating continued bullish sentiment for the technology sector.
In contrast, the Dow Jones Industrial Average (DJI) slipped 0.3% in midday trading on Thursday, after a substantial 1.1% surge on Wednesday that saw it close at 45,010.29. This Wednesday gain was the Dow's first close above 45,000 since December 4, 2024, and it remains less than 64 points shy of its all-time high. However, Thursday's midday dip, which saw it down 204 points or 0.5% in morning trading, was primarily attributed to weaker performances from some of its key industrial and automotive components. The CBOE Volatility Index (VIX), a gauge of market fear, was down 6.9% to 15.37 on Wednesday, reflecting a relatively calm market despite the mixed individual stock performances.
Several significant upcoming market events are on investors' radars. The next Federal Open Market Committee (FOMC) meeting is scheduled for July 29-30, 2025. While no interest rate cut is widely anticipated at this meeting, despite calls from President Donald Trump, market participants will be scrutinizing the Fed's statements for any clues regarding future monetary policy, especially concerning the persistent inflation rate, which stood at 2.7% in June, still above the Fed's 2% target. A notable event on Thursday was President Trump's rare visit to the Federal Reserve building, adding a layer of political intrigue to the economic landscape.
Beyond monetary policy, important economic data releases are also influencing market sentiment. Existing-home sales in June came in at 3.93 million units, missing the Zacks Consensus Estimate. U.S. commercial crude oil inventories for the week ended July 18 decreased by 3.2 million barrels. Investors are also awaiting fresh data on unemployment claims and new home sales, both due later on Thursday. Internationally, the Eurozone Composite PMI rose to 51 in July, indicating the fastest growth in private economic activity in 11 months, which could have implications for global trade and economic stability. A crucial deadline looms on August 1st, as investors closely monitor trade talks for potential U.S. tariffs on imports, a factor that continues to shape market sentiment.
Corporate earnings continue to be a dominant force driving individual stock movements. Alphabet (GOOGL), the parent company of Google, saw its shares rise between 1.5% and 3% after reporting better-than-estimated second-quarter results and announcing a significant boost to its capital spending plan for AI, increasing it to $85 billion. CEO Sundar Pichai highlighted the success of AI Mode, which has reached 100 million monthly active users. This positive news from Alphabet also provided a lift to other AI-related stocks, including Nvidia (NVDA), which gained 0.8% to 1% on Thursday after advancing 2.3% on Wednesday.
Conversely, electric vehicle giant Tesla (TSLA) experienced a significant decline, with shares dropping between 6% and 9% on Thursday. This downturn followed the company's second-quarter results, which fell short of Wall Street's expectations, and a warning from CEO Elon Musk about "a few rough quarters" ahead due to the phasing out of federal EV incentives. International Business Machines (IBM), a Dow component, tumbled more than 8% despite exceeding earnings expectations, as revenue from its software business came in lighter than anticipated. UBS analysts maintained a "sell" rating on the stock.
Other notable movers include Chipotle Mexican Grill (CMG), which plunged 12% after scaling back its same-store sales outlook. Dow Inc. (DOW) and American Airlines (AAL) also saw significant drops, falling 15% and 8% respectively. On the upside, ServiceNow (NOW) climbed 4% to 7% after raising its full-year subscription guidance and reporting strong Q2 results. T-Mobile US (TMUS) jumped 6% following its earnings report. Honeywell International Inc. (HON) dropped 5% after a disappointing quarterly report. Nasdaq Inc. (NDAQ) delivered strong Q2 2025 financial results, with net revenue increasing 13% and non-GAAP diluted earnings per share surging 24%. GE Vernova (GEV) surged 14% to 14.6% after beating Q2 earnings and raising full-year guidance, driven by robust AI demand. Honda Motor (HMC) and Toyota Motor (TM) also saw double-digit gains on Wednesday following President Trump's announcement of a tariff deal with Japan.
In summary, Thursday's midday trading session reflected a market grappling with mixed corporate earnings while maintaining a bullish undertone driven by optimism surrounding trade negotiations and the continued strength of the artificial intelligence sector. Investors remain vigilant, with upcoming economic data and the Federal Reserve's policy meeting next week poised to provide further direction.
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.