July 25, 2025
U.S. stock markets closed on a mixed note Friday, 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.
