Market Performance Overview
- The S&P 500 and Nasdaq continued their upward trend today. The S&P 500 gained 0.07%. It closed at a new record high of 6,363.35. The Nasdaq rose 0.18%. It reached 21,570.96.
- The Dow Jones Industrial Average, however, fell 0.7%. It closed at 44,694.09. This broke the 45,000 level. UnitedHealth’s significant drop largely influenced this decline. The overall market sentiment remained generally stable.
- Gold prices continued to fall. They dropped 0.74%. Gold settled at $3,372.5 per troy ounce. Oil prices saw a slight increase. They rose 1% to $66.00 a barrel.
- The 10-year US Treasury yield inched up 1 basis point. It settled at 4.398%. This followed a TIPS auction. The Dollar Index rose 0.26% to 97.46. The Japanese Yen stood at 146.96.
- The VIX volatility index rose slightly. It gained 0.13% to 15.39. Small-cap stocks saw significant movement. The Russell 2000 fell 1.38% today. This indicates a volatile day for smaller companies.
- The cryptocurrency market attempted a rebound. Bitcoin rose 0.4% to late $118,000s. Ethereum climbed 4% to $3,700. Ripple gained 1%. Solana remained mostly flat.
Macro and Political Landscape
President Trump signed three new AI-related executive orders. He continues to advocate for unified tariffs. He proposes 15-50% for other nations. He visited the Federal Reserve building today. This raised concerns about the Fed’s independence. Trump also reiterated his call for lower interest rates. He stressed a 3% target.
His AI orders include expedited permits. These are for power infrastructure projects. They also aim to expand technology exports. This includes AI hardware and models. He prohibited “woke” diversity policies in AI development. He emphasized federal government leadership in AI regulation.
A recent 30-year mortgage bond auction showed good demand. The yield remained stable. This indicates investor confidence.
Service sector activity is robust. The Services PMI hit 55.2. This suggests strong consumer-driven growth. Manufacturing PMI, however, dipped to 49.5. Existing home prices reached a record high. Despite this, sales volumes fell. This points to ongoing housing market struggles.
JPMorgan upgraded its market outlook. The firm turned bullish from bearish. They cited strong economic data. The Japan trade deal also fueled optimism. They suggest buying large tech and cyclical stocks. Other analysts caution about market exuberance. They point to increasing speculative trading.
Big Tech and AI Trends
Most big tech stocks gained today. Nvidia led the rally. It rose 1.73%. Amazon also performed strongly. It climbed 1.73%. Microsoft gained 0.99%. AMD was up over 2%. Broadcom rose 1%.
Google (Alphabet) saw early gains. However, it surrendered most of them. It closed up 0.88%. Its Q2 earnings were strong. Revenue beat estimates. Capital expenditure is rising for AI.
Apple fell slightly today. Its iOS 26 beta version introduced new features. These include AI translation. However, they had no significant stock impact.
ServiceNow surged almost 4% after its earnings. T-Mobile was very strong. It gained about 5%. Blackstone also rose after its earnings release. These companies benefited from strong AI-related themes.
Key Sector and Company News
- Tesla (TSLA) was a major decliner. Its stock fell over 8.2%. This followed its Q2 earnings report. Revenue decreased 12%. Vehicle deliveries also dropped. Carbon credit sales were halved. Elon Musk mentioned “several more difficult quarters” ahead. He stressed focusing on AI and robotics.
- UnitedHealth Group (UNH) dropped over 4%. It acknowledged a DOJ investigation. This involves Medicare Advantage billing practices. This news impacted the Dow Jones.
- IBM (IBM) reported decent Q2 earnings. Revenue increased 8%. EPS beat expectations. Hybrid cloud growth was strong. However, market concerns about software sales limited gains. Worries also surfaced about new orders in Europe and Asia.
- Chevron (CVX) is gaining from favorable policies. It received a Venezuela oil extraction permit.
- Intel (INTC) stock was down over 3%. Its Q2 revenue beat estimates. However, the company reported a loss. Its foundry business still faces challenges.
- GE Vernova (GEV) fell slightly, but received positive analyst upgrades. Bank of America raised its price target. This reflects strong demand for gas turbines and data center power solutions.
- In the airline sector, American Airlines (AAL) and Southwest Airlines (LUV) struggled. American Airlines fell 9%. Southwest plunged 11%. Southwest’s earnings were particularly weak. This was due to its domestic focus.
- Honeywell (HON) fell 6% despite solid earnings. It also raised its annual revenue guidance.
- Chipotle (CMG) dropped 13%. This was an after-effect of its Q2 results. Same-store sales declined 4%.
- LVMH (LVMUY) reported weak Q2 sales. Its fashion and leather goods division dropped 9%. The CEO is actively lobbying against US tariffs.
Looking Ahead: Economic Data and Earnings
Tomorrow’s key data includes June durable goods orders. Earnings reports are expected from HC Healthcare, Philips, and 3M.
Important Notice
This content is for informational purposes only. It is not financial advice. Stock market investing involves significant risks. Past performance does not guarantee future results. Investors should conduct their own research. You should consult a qualified professional advisor.