US three major indices mixed; tech earnings boost sentiment; Nasdaq up 0.8%

On Friday, July 24, 2026, the three major US stock indices closed mixed, with tech stocks continuing their strength and pushing the Nasdaq higher. At the close, the Dow Jones Industrial Average fell 32.7 points, or 0.1%, to 38,910.5; the S&P 500 edged up 2.1 points, or 0.05%, to 5,236.4; and the Nasdaq Composite rose 118.3 points, or 0.8%, to 16,847.2. The market was boosted by the latest earnings from tech giants, while traditional sectors were pressured by caution over interest rate outlook.

Tech Earnings Highlights: AI and Cloud Business Drive Growth

This week's tech earnings season peaked. Microsoft (MSFT) reported better-than-expected Q4 fiscal 2026 results after Wednesday's close, with revenue of $69.87 billion, up 18% year-over-year. Azure revenue grew 32%, with AI services contributing significantly. CEO Satya Nadella said the AI-driven transformation is accelerating, with strong demand for Copilot and other AI products from enterprise customers. Meanwhile, Google parent Alphabet (GOOGL) also posted impressive Q2 results after Thursday's close, with revenue up 15% year-over-year to $91.24 billion, Google Cloud growing 28%, and advertising revenue steadily recovering. Both companies emphasized in their earnings calls that future capital expenditures will go primarily to AI infrastructure, with total combined capital spending for 2026 expected to exceed $120 billion.

As a result, Microsoft shares rose 2.3% on Friday, Google rose 1.9%, pushing the Nasdaq to lead among tech sectors. Amazon (AMZN) hit an all-time high during Friday trading, with high market expectations for its upcoming results. Analysts noted that corporate IT spending is accelerating migration to the cloud and AI, with tech leaders seizing most of the growth dividends through first-mover advantages.

Chinese ADRs Mixed; Pinduoduo Rebounds

Chinese ADRs were mixed on Friday. Pinduoduo (PDD) rose 4.1% after the company announced plans to increase investment in Southeast Asian markets and launch a new subsidy plan for its cross-border platform Temu. Alibaba (BABA) edged down 0.3%, Baidu (BIDU) fell 1.2%, pressured by ongoing domestic antitrust policies. NIO (NIO) rose 3.5%, boosted by new energy vehicle sales data. Overall, Chinese ADRs have not yet formed a trend, but some individual stocks showed signs of capital inflows after oversold conditions.

Energy and Financial Sectors Under Pressure; Oil Prices Drag

Traditional sectors were weak. Energy stocks broadly declined, with Exxon Mobil (XOM) down 1.4% and Chevron (CVX) down 1.1%, as international crude oil futures fell over 2% to around $74 per barrel. The market expects global economic growth slowdown to curb oil demand, while OPEC+ may gradually increase production in the future. Financials also struggled, with JPMorgan Chase (JPM) down 0.8% and Goldman Sachs (GS) down 1.2%. Investors remained cautious on the interest rate trajectory ahead of the Fed's policy meeting next week. The US Treasury yield curve inversion deepened, with the spread between 2-year and 10-year yields widening to -35 basis points, suggesting ongoing recession risks.

Market Outlook: Focus on Fed Decision and Upcoming Tech Earnings

Market attention next week will turn to the Fed's July 28-29 FOMC meeting. While the market currently expects no rate change, investors will closely watch the policy statement for any shifts in language on inflation and employment. A hawkish signal could weigh on high-valuation tech stocks. On the other hand, next week also brings earnings from Apple (AAPL), Meta (META), and Tesla (TSLA). Tesla shares rose 1.9% on Friday, with market expectations for an update on its Cybercab mass production plans. Overall, the stability of tech earnings is a key factor supporting US stocks, but macro uncertainties remain.

By Friday's close, the CBOE Volatility Index (VIX) fell 0.3 points to 14.2, indicating low market fear. Fund flows showed that tech ETFs (e.g., QQQ) had net inflows of over $3 billion this week, while financial ETFs (XLF) saw outflows. Analysts generally believe that, driven by the AI wave, the structural rally in US tech stocks is likely to continue, but short-term pullback risks should be monitored.

— Yatai Global Financial Observatory, July 26 comprehensive report