Key Takeaways
- Nasdaq Composite fell 0.64% to 24,975.82 on Friday, July 24, 2026, on chip-stock weakness; Dow rose 0.46% to 51,947.25; S&P 500 added 0.05% to 7,411.98 (Reuters)
- Intel sank 7.9% despite upbeat Q2 guidance; Philadelphia SE Semiconductor Index fell 4.5%
- Alphabet’s capex hike reignited AI-spending ROI concerns ahead of Microsoft, Amazon, Meta and Apple earnings next week
- Crude oil fell over 3% even as US missiles struck Iran; Washington imposed fresh 10%–12.5% tariffs on 60 trading partners
- Digital Realty (+11%), SLB (+11%), International Paper (+11.2%) led individual gainers
- All three benchmarks logged a second straight weekly loss; GIFT Nifty points to a mildly positive Monday, July 27 open
US stocks closed mixed on Friday, July 24, 2026, with the Nasdaq Composite falling 0.64% to 24,975.82 on renewed chip-stock selling tied to worries over runaway artificial intelligence spending, even as the Dow Jones Industrial Average climbed 235.60 points, or 0.46%, to 51,947.25, according to Reuters.
The S&P 500 added just 0.05% to 7,411.98, weighed down by a 0.88% decline in its technology sub-index, as investors braced for next week’s earnings from Microsoft, Amazon.com, Meta Platforms and Apple. A 3.5% jump in Apple shares helped cushion the Dow’s gains, CNBC reported.
Check Live: GIFT NIFTY| NIFTYTRADER
Why Did The Nasdaq Fall Today?
Sentiment around megacap technology names has cooled since Alphabet’s late-Wednesday disclosure of a sharp increase in its capital-spending plans even as the company continues to burn cash, Reuters reported.
Peter Andersen, CEO of Andersen Capital Management, said investors are questioning how much longer they must wait before AI outlays translate into profit, adding that the market’s earlier “fear of missing out is becoming more like a fear of massive overbuilding.”
For close to two years, bigger AI-spending announcements were typically rewarded by the market; Friday’s session suggested that calculus is shifting toward demanding a clearer path to returns.
Chip Stocks Lead The Selling
Intel added to the unease. Late Thursday, the chipmaker forecast quarterly profit and revenue above Wall Street estimates and outlined plans to raise spending over the next two years.
Despite the upbeat guidance, Intel shares sank 7.9% on Friday, dragging the Philadelphia SE Semiconductor Index down 4.5%, Reuters and Yahoo Finance data showed, a reaction that underscored markets placing more weight on near-term returns than on expansion plans alone.
Oil Slips, Middle East Tensions Persist
Crude oil futures fell more than 3% on Friday as traders booked profits after a five-session rally, with Reuters citing sources who said China was pushing to revive stalled US-Iran peace talks.
Even so, US forces struck targets across Iran after President Donald Trump vowed “major military punishment” against Tehran and its Houthi allies in Yemen.
Andersen noted that swings in oil prices continue to drive broader market sentiment given their impact on consumer and corporate spending.
Sector Movers And Tariff Action
Real estate was the S&P 500’s best-performing sector, up 2.4%, led by Digital Realty Trust, which rallied 11% after raising its full-year funds-from-operations forecast, per Reuters.
Materials gained 1.44% as International Paper jumped 11.2% and Smurfit Westrock added 11.1%. SLB rose 11% after beating second-quarter profit estimates.
Separately, the Trump administration imposed fresh tariffs of 10% and 12.5% on goods from 60 trading partners over lax enforcement of forced-labor bans, coinciding with the expiry of a temporary 10% global tariff.
US services-sector activity accelerated in July, aided by FIFA World Cup and Independence Day spending, even as manufacturing growth slowed to its weakest pace since March, Reuters reported.
All three benchmarks logged a second straight weekly decline, with the Nasdaq’s roughly 2% slide the steepest.
Decliners outpaced advancers on the Nasdaq by a 1.25-to-1 ratio, with 78 new 52-week highs against 205 new lows, while NYSE volume totalled 15.03 billion shares versus a 20-session average of 18.22 billion, Reuters data showed.
Market Snapshot
| Index | Friday Close | Change | % Change | Weekly Change |
|---|---|---|---|---|
| S&P 500 | 7,411.98 | +3.68 | +0.05% | -0.6% |
| Nasdaq Composite | 24,975.82 | -161.87 | -0.64% | ~-2.0% |
| Dow Jones Industrial Average | 51,947.25 | +235.60 | +0.46% | -0.4% |
| Philadelphia SE Semiconductor (SOX) | — | — | -4.5% | — |
NiftyTrader Desk View
| Stock | Key Technical Trigger | Trader View |
|---|---|---|
| Intel (INTC) | Fell 7.9% despite Q2 guidance above estimates | Reaction stayed negative even after upbeat guidance; volatility likely into peer earnings |
| Digital Realty Trust (DLR) | Rallied 11% after raising full-year FFO forecast | Sharp single-session re-rating on stronger demand commentary |
| SLB (SLB) | Gained 11% on Q2 profit beat | Energy-services counter back in focus after the beat |
| Apple (AAPL) | Rose 3.5%, helping anchor the Dow | Relative outperformer within megacap tech ahead of next week’s results |
| International Paper / Smurfit Westrock | Jumped 11.2% / 11.1% amid packaging-sector rotation | Sudden rotation into packaging names stands out against a soft tech tape |
Also Read: Intel Q2 2026: AI Demand Signals a New Phase in the Chip Race
What To Watch Next Week
| Catalyst | Why It Matters |
|---|---|
| Microsoft earnings | Azure growth and AI capital-spending commentary |
| Amazon earnings | AWS performance and data-centre investment plans |
| Meta earnings | Advertising growth and AI-monetisation updates |
| Apple earnings | Hardware demand and AI roadmap commentary |
| Oil and Middle East developments | Continued swings could affect broader risk sentiment |
| US Treasury yields | Direction could influence rate-sensitive tech valuations |
Could This Affect Indian IT Stocks?
Wall Street’s AI-spending anxiety carries a possible read-through for Indian markets, given how closely IT services revenue is tied to US enterprise technology budgets.
If Microsoft, Amazon and Meta reaffirm strong AI-linked spending alongside healthy guidance next week, sentiment toward Indian IT bellwethers such as TCS, Infosys and HCLTech could hold up; more cautious commentary on AI returns, however, may prompt a re-rating of sector valuations.
This is a sentiment read rather than a confirmed trend, and will depend on the actual earnings commentary next week.
What It Means For Dalal Street
Wall Street’s mixed close comes after five straight sessions of risk-off trading on Dalal Street, with the Sensex and Nifty both under pressure through Friday on rising crude prices and weak global cues.
Early indicators for Monday, July 27, 2026, point to a range-bound to mildly positive opening, with GIFT Nifty signalling a positive start even as elevated volatility could keep gains measured, according to 5paisa.
Traders tracking institutional positioning ahead of the open can check live activity on NiftyTrader’s FII-DII Tracker: https://www.niftytrader.in/fii-dii-data
Bottom Line
Friday’s mixed close reflects a market no longer rewarding AI spending on promise alone, investors want a visible path to returns. With Microsoft, Amazon, Meta and Apple all reporting next week following Alphabet’s capex hike, chip and megacap tech stocks are likely to stay volatile, while oil prices and Middle East developments remain a parallel risk factor for both US and Indian equities into the new week.
SEBI Disclaimer: This article is for informational purposes only and does not constitute investment advice, an offer, or a recommendation to buy or sell any security. Readers are advised to consult a SEBI-registered investment advisor and review all related documents before making investment decisions. Markets are subject to risks.
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