Market Recap – Thursday, July 24, 2025
US Stocks Mixed as Earnings Season Kicks Off
Stocks ended the day mixed, with the Dow and Russell 2000 seeing declines, while the S&P 500 and Nasdaq closed at new all-time highs. The market remained relatively quiet, with limited directional moves. Big tech stocks were mostly positive, with Alphabet (GOOGL) receiving a strong reception following its earnings report, while Tesla (TSLA) disappointed as CEO Elon Musk warned of potential "rough quarters" ahead. Other outperforming sectors included energy, asset management, cybersecurity, and trucking. On the flip side, sectors like semiconductors, homebuilders, and telecom faced some challenges.
Treasuries saw a slight pullback with yields climbing by 4-5 basis points at the short end. The dollar index rose slightly by 0.2%, while commodities like gold and crude oil faced mixed movements — gold falling by 1.3% and crude oil settling up 1.2%.
Trade and Earnings Update: Focus on Big Tech and Tariffs
The market's attention today was split between ongoing earnings reports and trade developments. The US and EU are nearing an agreement to impose a 15% tariff on European imports, a move to avoid the previously threatened 30% tariffs set for August 1st. Meanwhile, earnings reports from major companies revealed a mix of strong and disappointing results. Google (GOOGL) posted impressive growth, especially in AI, while Tesla (TSLA) warned of lower demand in the EV market and higher reliance on AI and robotics moving forward.
Economic Data: Mixed Signals from Job Claims and Manufacturing
Economic data released today showed a modest decline in initial jobless claims, signaling some continued strength in the labor market. On the other hand, the flash July PMI composite missed expectations for manufacturing but beat expectations in services, showing a split performance in the economy. Additionally, new home sales for June fell short of expectations, although prices continued to rise, reflecting ongoing challenges in housing availability.
Here's Our Take
Today’s market action highlighted the resilience of the tech sector, with Alphabet's positive earnings and the ongoing strength in AI adoption supporting broader market optimism. However, Tesla's warning about future challenges in the EV sector raised concerns about the pace of growth in this area. The trade front continues to be a key theme, with the US and EU edging closer to an agreement on tariffs, though uncertainty remains with ongoing talks and looming deadlines. Economic data showed mixed results, with a stronger services sector but persistent challenges in manufacturing and housing. Looking ahead, the market will likely stay focused on earnings reports, particularly from big tech, and the ongoing developments on trade and tariffs. With lower volatility and steady macro indicators, the market seems poised to continue its upward trajectory, but caution is warranted due to the uncertainty surrounding trade and economic pressures.
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