US Stocks Hit by Black Thursday: Tech Sector Plunges, Defense and Crypto Mining Rise Against the Trend

On July 24 local time, the US stock market experienced a sharp shock, with all three major indices falling, led by the tech-heavy Nasdaq which suffered the most severe decline. This trading day not only broke the recent calm in the market, but also revealed investors' deep concerns about the profit outlook and valuation levels of the tech industry. At the same time, defense stocks and crypto mining concept stocks rose against the trend, showing market funds being reallocated across different sectors.

Market Overview: Tech Giants Hit Hard

As of the close, the Nasdaq plunged 2.15%, the S&P 500 fell 1.21%, and the Dow Jones Industrial Average dropped 0.97%. The core focus of the market volatility was on the group of leading companies known as the 'Magnificent Seven' — that sector index fell 4.8% in a single day, with total market cap evaporating approximately $797 billion in one day, setting a rare single-day wealth shrinkage record this year.

The trigger for this crash came from the financial reports of two tech giants. Tesla's stock plunged over 14%, its biggest single-day drop since March 11, 2025. The company's Q2 net profit missed market expectations, and gross margin further declined, reflecting that under the dual pressures of fierce electric vehicle price wars and slowing demand, this industry leader could not remain immune. Meanwhile, Google parent Alphabet's stock fell over 7%, also its biggest single-day drop since May 8, 2025, with its total market cap falling below $4 trillion, indicating growing market doubts about its advertising business growth prospects and returns on AI investments.

Sector Divergence: Tech and Defense — Fire and Ice

Against the backdrop of widespread pressure on tech stocks, other tech giants were not spared. Amazon fell over 4%, Meta dropped over 3%, Intel and Microsoft both fell over 2%, and Apple and Nvidia each fell over 1%. This broad-based correction reflects investors' concerns about the overall valuation bubble in the tech sector and a reassessment of the sustainability of growth companies' earnings in a high-interest-rate environment.

However, the other side of the market presented a completely different picture. The defense sector performed strongly overall: Lockheed Martin surged over 10%, Raytheon Technologies rose over 7%, GE Aerospace gained over 2%, and Northrop Grumman and General Dynamics both rose over 1%. The recent escalation of geopolitical tensions and expectations of increased defense budgets globally became the core logic driving defense stocks up. The flow of capital from high-valuation tech stocks to more defensive defense stocks also reflects a significant rise in market risk aversion.

In addition, crypto mining concept stocks also performed well, with Cipher Digital up over 5% and Hut 8 up over 7%. The recent stabilization and rebound of Bitcoin prices, along with expectations of improved US cryptocurrency policy regulatory environment, injected new vitality into this sector.

Market Outlook and Conclusion

The trading data on July 24 clearly reveals that the US stock market is facing a turning point of structural divergence. Although the tech industry still has long-term growth potential in frontier fields such as artificial intelligence and cloud computing, short-term earnings pressures and valuation correction pressures cannot be ignored. At the same time, traditional sectors such as defense and energy, as well as crypto asset-related areas, are becoming new directions for funds seeking safe havens and high yields.

For investors, the current market environment is no longer an era where simply 'buying tech stocks' can generate excess returns. Diversified asset allocation, in-depth research on corporate fundamentals, and continuous attention to macro policies and geopolitical risks will be the only way to cope with future market volatility. This turbulence in the US stock market may be the beginning of a new investment logic reshaping.