Wall Street entered Thursday, July 24th, in a mixed mood as investors juggled strong economic signals with a wave of uneven earnings results and trade uncertainty.
The S&P 500 and Nasdaq both notched modest gains, lifted by tech names like Alphabet and ServiceNow, while the Dow lagged, weighed down by disappointing reports from healthcare and industrial giants.
At the open, the S&P 500 ticked up 0.17% and the Nasdaq climbed 0.33%, riding momentum from Alphabet’s bullish capital spending forecast. The Google parent added nearly 2% after revealing it would ramp up 2025 capex by an additional $10 billion, bringing the total to $85 billion.
That’s a clear sign of long-term confidence despite trade tremors and geopolitical noise. But it wasn’t smooth sailing for every big name.
Tesla tumbled over 7% after Elon Musk warned of “a few rough quarters” ahead, largely due to declining EV incentives.
Meanwhile, the Dow Jones Industrial Average struggled, dragged down by UnitedHealth, IBM, and Honeywell. UnitedHealth dipped more than 2% following news that it’s under a Justice Department investigation over Medicare practices.
IBM shed a sharp 9.5% as weak software sales offset other strengths in its earnings report. Even Honeywell, which beat estimates and raised its outlook, couldn’t avoid the red, falling over 5%, a reminder that even solid results aren’t always enough in a jittery market.
Trade developments remain front and center. President Trump’s visit to the Federal Reserve headquarters surprised markets, coming on the heels of yet another public jab at Fed Chair Jerome Powell.
On the international front, Trump’s administration scored a trade win with Japan, reducing tariffs on Japanese imports to 15%. Similar deals with China and South Korea may be in the works, but the broader market is still absorbing the potential long-term cost of Trump’s sweeping tariffs.
On the macro side, strong labor data added a layer of optimism. Jobless claims came in lower than expected, reinforcing the view that the U.S. economy is still humming along.
However, inflation concerns persist as businesses continue to pass rising import costs onto consumers. Markets are now pricing in a 62% chance of a Fed rate cut by September, adding another layer of speculation ahead of next week’s FOMC meeting.
For now, investors are walking a tightrope by navigating upbeat data, volatile earnings, and uncertain trade politics. The bull case is still intact, but it’s facing a fresh round of stress tests.
