Wall Street wrapped up Thursday’s session on a mixed note, as strong earnings from Alphabet propelled the S&P 500 and Nasdaq to fresh record closes, but weakness in other heavyweight names, including Tesla and IBM, dragged on the broader market.
The S&P 500 inched up 0.07% to close at 6,363.35, while the Nasdaq Composite added 0.18%, finishing at 21,057.96. Both had set intraday highs earlier in the day. The Dow Jones, however, fell sharply, down 316 points or 0.7% closing at 44,693.91, with losses in IBM, Honeywell, and UnitedHealth weighing on the index.
Alphabet boosts AI optimism
Shares in Alphabet climbed 1% following better-than-expected second-quarter earnings and revenue. The Google parent’s results provided a boost to tech sentiment, with analysts pointing to signs that massive investments in artificial intelligence are beginning to deliver real returns.
Nvidia and Amazon also helped pace the ‘magnificent seven’ stocks higher, extending momentum in the growth-heavy tech sector that has led US gains since early 2023.
Tesla and IBM disappoint
Tesla shares tumbled 8.2% after reporting a second straight quarter of declining automotive revenue, and CEO Elon Musk warned of “a few rough quarters” ahead. The stock had been down as much as 11% earlier in the session.
IBM also weighed heavily on the Dow, plunging 7% after its software division missed expectations, compounding the broader index’s underperformance.
Trump-Fed tensions and trade worries resurface
Investors were also watching political developments closely. President Trump’s planned visit to the Federal Reserve, the first by a sitting president in nearly 20 years, has raised concerns over central bank independence amid ongoing friction with Chair Jerome Powell.
Meanwhile, hopes for a US-EU trade agreement were buoyed by reports from the Financial Times and Bloomberg suggesting progress. However, new tariffs of 15% on EU imports remain on the table if talks stall before the 1 August deadline.
Australia outlook and commodities
Australian shares are set to open lower, with SPI 200 futures down 39 points, or 0.5%, to 8637.
In commodities, gold slipped 0.6% to US$3,368 an ounce, while Brent crude rose 1.2% to US$69.30 a barrel. Iron ore edged up 0.8% to US$105.35 a tonne.
The Aussie dollar dipped to US65.91¢.
Quarterly earnings are due Friday from Newmont and Whitehaven Coal.
