U.S. stock markets wrapped up a strikingly split session, with the S&P 500 and Nasdaq Composite climbing to new record closes, while the Dow Jones Industrial Average dipped notably. The momentum was driven largely by blockbuster earnings from Alphabet (Google’s parent company), which reinvigorated sentiment around AI-focused technology stocks
Friday, July 25, 2025
New York, NY —
U.S. stock markets closed on a mixed note Thursday, as strong earnings from Alphabet lifted tech-heavy indices to record highs, while blue-chip stocks dragged the Dow Jones Industrial Average into negative territory.
The S&P 500 edged up 0.07% to close at 6,363.35, marking a fourth consecutive record finish, while the Nasdaq Composite gained 0.20% to settle at a new high of 21,058. In contrast, the Dow Jones fell sharply by 0.70%, ending the day at 44,694, weighed down by losses in companies like IBM and Tesla.
Investor sentiment was boosted by Alphabet’s impressive Q2 earnings, which beat analyst expectations with $96.4 billion in revenue and $28.2 billion in net income. The tech giant saw strong growth in Google Cloud (up 32%) and search-based AI features like AI Overviews, which now serves over 2 billion users monthly. CEO Sundar Pichai emphasized Alphabet’s growing AI footprint and announced plans to raise 2025 capital spending to $85 billion.
Alphabet’s performance sparked broader gains in AI-related stocks, including Nvidia and AMD, helping to sustain optimism in the technology sector. However, the rally was not enough to offset weakness elsewhere.
Tesla shares tumbled 8% after CEO Elon Musk signaled a difficult road ahead due to waning EV subsidies and regulatory uncertainty. Meanwhile, Intel dropped nearly 9% after issuing weak guidance. Other underperformers included American Airlines, IBM, and Chipotle, which missed revenue expectations.
Traders also kept a close watch on geopolitical tensions, including the EU’s threat of $100 billion in tariffs on U.S. exports. With earnings season in full swing and macro uncertainties looming, analysts caution that volatility may persist, despite AI-driven optimism.
Closing Summary:
- S&P 500: 6,363 (+0.07%)
- Nasdaq: 21,058 (+0.20%)
- Dow Jones: 44,694 (−0.70%)
.