Dow Ends Flat at 52,218, Nasdaq Slips 0.6% as Oil Surges Past $94 Ahead of Big Tech Earnings

Mumbai, July 23: U.S. stock markets ended Wednesday’s session on a mixed note as escalating Middle East tensions pushed crude oil above $94 a barrel, reigniting inflation concerns and lifting bond yields to two-month highs. The Dow Jones Industrial Average held near the flatline, while the tech-heavy Nasdaq Composite led the declines as investors adopted a cautious stance ahead of quarterly results from Alphabet and Tesla after the closing bell. 

The S&P 500 slipped 10.24 points, or 0.14%, to settle at 7,498.96. The Nasdaq Composite dropped 146.30 points, or 0.57%, to close at 25,690.90. The Dow Jones Industrial Average lost a marginal 6.06 points, or 0.01%, finishing at 52,218.58. The Dow opened at 52,287.14 and traded in a range of 52,148.87 to 52,511.21 during the session, with volume at 442,368,133 shares, below the three-month average volume of 536,559,180. The index’s 52-week range stands at 43,340.68 to 53,289.30. 

The session followed Tuesday’s broad-based rally, when the Nasdaq surged 1.29% to 25,837.21 and the S&P 500 added 0.89% to 7,509.20. However, momentum faltered as energy prices spiked and investors braced for key technology earnings that could determine the sustainability of the artificial intelligence-driven rally. 

Super Micro Computer Shares Surge 20% on Record $60 Billion Order Backlog 

Super Micro Computer surged nearly 20% after the AI server maker announced a record $60 billion order backlog, significantly improving its long-term earnings outlook. The company also raised its expected gross margin to 16% from earlier guidance of 8.3%, citing a favourable customer and product mix.  

While fourth-quarter revenue is expected near the lower end of its $11 billion-$12.5 billion guidance, investors welcomed the strong backlog. Needham raised its price target to $46 from $40, maintaining a Buy rating. The update lifted peers, with Dell Technologies rising nearly 10% and Hewlett Packard Enterprise gaining more than 3%. 

GE Vernova Slides 8% Despite Revenue Beat as Wind Unit Loss Widens to $275 Million 

GE Vernova shares dropped around 8% after the company reported mixed second-quarter results. Adjusted earnings came in at $2.47 per share, missing analysts’ estimates of $3.04, although revenue rose 22% year-on-year to $11.10 billion, beating expectations. Total orders surged 88% organically to $24.22 billion, lifting the company’s backlog to $176.3 billion, while management reiterated its goal of reaching $200 billion by 2027. 

The Power business remained a key growth driver, with revenue increasing 14% to $5.48 billion and orders more than doubling to $16.73 billion. Electrification revenue jumped 68% to $3.64 billion, supported by strong demand for data-centre infrastructure. However, the Wind segment continued to weigh on performance, with orders falling 40% to $1.2 billion, revenue declining 10% to $2.03 billion, and the EBITDA loss widening to $275 million from $165 million a year earlier. 

GE Vernova generated $5.11 billion in free cash flow, raised its 2026 revenue and free cash flow guidance, and returned $3.9 billion to shareholders. Despite the improved outlook, management warned that global tariffs could add $100 million-$200 million to costs in 2026. Shares remain 55% higher year-to-date despite the post-earnings decline. 

Also Read: How to invest in US stocks  

AT&T Jumps 4% on Earnings Beat, Lifts Buyback Target to $10 Billion 

AT&T shares rose 3.50% to $23.04 after the telecom giant reported stronger-than-expected second-quarter results. Adjusted earnings came in at $0.65 per share, beating estimates of $0.59, while revenue increased 2.3% year-on-year to $31.6 billion. Service revenue rose 2.7%, adjusted EBITDA climbed 5.2%, and margins expanded to 39.1%, the highest since the company’s strategic restructuring.  

AT&T added more than 1 million fiber, fixed wireless, and postpaid subscribers, generated $4.7 billion in free cash flow, raised its 2026 share repurchase target to $10 billion, and reaffirmed its full-year earnings outlook. 

Alphabet and Tesla Earnings in Focus as AI Spending, Cloud Growth and Robotaxi Outlook Take Centre Stage 

Investor focus shifted to Alphabet and Tesla, with both companies scheduled to report quarterly results after the closing bell. Alphabet is expected to post earnings of $2.90 per share on revenue of $117.19 billion, while Google Cloud revenue is projected to jump 65% year-on-year to $22.50 billion, underscoring continued demand for AI infrastructure. Analysts also expect 2026 capital expenditure of $187.1 billion, with investors closely watching management’s AI investment plans and cloud profitability after the company reported a 36.1% operating margin in the first quarter. 

Tesla is forecast to report revenue of $26.29 billion and adjusted earnings of 55 cents per share, compared with 40 cents a year earlier. The electric vehicle maker delivered a record 480,126 vehicles and 13.5 GWh of energy storage during the quarter, while raising its 2026 capital expenditure guidance to $25 billion from $20 billion. Investors are expected to focus on updates related to Robotaxi, Optimus humanoid robots, and the company’s accelerating AI investments, which management has warned could pressure free cash flow. 

Ahead of the results, Alphabet and Tesla shares both closed more than 1% lower. Meanwhile, SpaceX declined 5% to around $117, well below its $135 IPO price, with nearly 206 million shares, or 32% of the tradable float, sold short, according to S3 Partners. Analysts said the earnings from Alphabet and Tesla are likely to shape sentiment toward the broader AI sector and influence expectations for upcoming technology earnings. 

AMD to Invest Up to $5 Billion in Anthropic in Major AI Chip Deal 

Advanced Micro Devices (AMD) will invest up to $5 billion in AI startup Anthropic as part of a broader agreement to supply AI servers powered by its next-generation Instinct MI450 Series GPUs. Anthropic plans to deploy up to 2 gigawatts of AMD chips starting in the first half of 2027, with the investment linked to deployment milestones. The partnership expands Anthropic’s AI computing capacity, complementing its existing infrastructure agreements. AMD said the investment strengthens its position in the AI ecosystem, while Anthropic highlighted growing demand for compute power. AMD shares rose more than 1% following the announcement and are up over 100% year-to-date in 2026. 

Dow Jones Industrial Average Heatmap Shows Mixed Performance Across 30 Components 

The Dow Jones Industrial Average heatmap reflected mixed performance across its 30 constituents, with gains in financials, healthcare, and energy offsetting weakness in technology.  

Nvidia led the index with a 2.33% gain, while Goldman Sachs rose 1.22% and JPMorgan Chase added 0.88% as higher Treasury yields supported banking stocks. In healthcare, Johnson & Johnson advanced 2.01%, while Merck gained 1.00% and UnitedHealth fell 1.11%.  

Technology stocks remained under pressure, with Salesforce dropping 4.16%, IBM declining 2.10% ahead of earnings, Microsoft losing 1.82%, Amazon falling 1.08%, and Apple slipping 0.49%. Meanwhile, Boeing gained 1.93%, Honeywell rose 1.36%, Chevron advanced 0.99%, and Verizon added 1.17%, while Walmart fell 0.95%. 

Today’s Top Gainers and Losers Across Major Indices 

Among the session’s biggest gainers, Super Micro Computer surged 19.86%, while Arrowhead Pharmaceuticals climbed 19.03% to $88.70. Dell Technologies advanced 9.32% to $441.80, Riot Platforms gained 8.79% to $23.38, and EQT Corporation rose 8.50% to $54.04 after strong quarterly production. Liquidia Corporation jumped 7.60% to $87.04, while Cipher Digital added 6.86% to $24.46. On the downside, Boxabl plunged 23.70%, Maase Inc. fell 17.46%, Pegasystems dropped 16.00%, Badger Meter lost 13.27%, UiPath declined 11.25%, GE Vernova fell 8.50%, and Reddit slid 8.32%. 

Also Read: US Stock market timings  

Russell 2000 Index Slips 0.96% as Small-Caps Underperform 

The Russell 2000 Index fell 28.54 points (0.96%) to close at 2,958.86, after trading between 2,955.60 and 2,983.43, as rising geopolitical tensions and higher oil prices weighed on small-cap stocks. The index remains within its 52-week range of 2,143.43 to 3,046.59. Among the top gainers, Arrowhead Pharmaceuticals surged 18.92%, Riot Platforms gained 8.82%, Liquidia Corporation rose 7.60%, and Cipher Digital advanced 6.68%. Major laggards included Navan (-11.50%), Lemonade (-7.55%), Applied Optoelectronics (-7.37%), ImmunityBio (-6.94%), and Xometry (-6.11%). 

SpaceX Slides 5%, Rocket Lab Secures $266 Million Contract as Reddit and Cal-Maine Sink 

Company-specific developments drove sharp stock moves across sectors. SpaceX shares fell 5% to around $117, remaining below their $135 IPO price, despite plans to expand AI data centre capacity in Texas. Rocket Lab gained 4% after winning a $266 million U.S. Air Force launch contract through 2028.  

Cal-Maine Foods dropped more than 6% after reporting a wider-than-expected quarterly loss, while Philip Morris hit a record high as strong IQOS demand lifted revenue and smoke-free product shipments. Reddit tumbled 9% following reports it may block Google’s AI access to its content. Monday.com rose 2% after announcing a 20% workforce reduction and raising its full-year operating margin outlook. 

Nike Restructures China Business, Prologis Makes £14 Billion Bid as China IPO Draws Attention 

Several strategic announcements also remained in focus. Prologis submitted a £14 billion final offer for Segro, representing a 39% premium to its pre-offer share price. Nike said it will end online sales agreements with hundreds of distributors in China from January to simplify its retail strategy.  

Eaton declared a quarterly dividend of $1.10 per share. U.S. natural gas futures climbed 2.5% on stronger cooling demand and higher crude oil prices. Meanwhile, the U.S. Treasury warned against aggressive tax-avoidance strategies, China’s planned $10 billion ChangXin Memory Technologies IPO attracted strong investor demand, and the European Union conditionally approved Paramount’s $110 billion acquisition of Warner Bros. Discovery. 

S&P 500 Sectors: Utilities Lead 2.3% Higher as Tech Weakness Persists 

The Utilities sector led the S&P 500, rising 2.3% to around 466.70, its highest level since June 29, as investors rotated into defensive stocks amid geopolitical tensions and ahead of major technology earnings. Materials and industrials also advanced, while consumer discretionary and communication services lagged.  

Seven of the index’s 11 sectors traded higher, with the S&P 500 moving between an intraday high of 7,519.22 and a low of 7,485.85. Super Micro Computer, Dell Technologies, and Hewlett Packard Enterprise were among the top gainers, while GE Vernova and Reddit led the declines. Energy stocks, including EQT Corporation and Chevron, also outperformed on stronger crude oil prices. 

Also Read: Nasdaq Surges 1.29% to 25,837 as Chip Stocks Rally; Dow, S&P 500 Snap Three-Day Losing Streak

Nasdaq 100 Heatmap Shows Significant Divergence Among Technology Stocks 

The Nasdaq 100 heatmap reflected mixed performance across technology stocks. Nvidia gained 2.33%, Broadcom rose 2.74%, and Advanced Micro Devices advanced 1.47%, while Intel fell 2.71%, Micron Technology slipped 1.22%, and Applied Materials declined 1.81%. Palantir Technologies was the worst performer, tumbling 6.09%, followed by Adobe (-3.80%), AppLovin (-3.77%), Shopify (-3.75%), Datadog (-3.58%), and Airbnb (-2.81%). Among mega-caps, Meta lost 2.57%, Microsoft 1.82%, Tesla 1.29%, Alphabet 1.09%, Amazon 1.08%, and Apple 0.49%. Outside the index, AT&T rose 3.53%, GE Vernova fell 8.50%, while Super Micro Computer surged 19.86%. 

Brent Crude Tops $94, Treasury Yields Hit Two-Month High as US-Iran Conflict Fuels Inflation Concerns 

Oil prices surged to a six-week high as the US-Iran conflict entered its 11th consecutive day, intensifying fears of supply disruptions across key Middle Eastern shipping routes. Brent crude settled near $94 a barrel after touching an intraday high of $95.47, while WTI crude climbed to $86.18. Escalating military action, threats to shipping through the Strait of Hormuz and Bab el-Mandeb, and concerns over tighter oil supplies pushed the Brent three-month timespread to its widest since May.  

Rising energy prices also lifted U.S. Treasury yields, with the 10-year yield approaching 4.67%, as markets priced in higher inflation and increased odds of Federal Reserve rate hikes. Safe-haven demand boosted gold prices, while the stronger yield environment supported the U.S. dollar. 

Geopolitical tensions and oil prices above $94 a barrel continued to weigh on markets, while higher Treasury yields revived inflation concerns ahead of Alphabet and Tesla earnings. Investors will closely watch energy prices, Fed policy signals, and corporate guidance for clues on broader market direction. 

Source 

• https://www.nasdaq.com/ 

• spglobal.com/spdji/en/indices/equity/sp-500/ 
• https://www.dowjones.com/