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Among the major tech names, Amazon and Apple both shed 0.5 per cent, while Nvidia saw a 1.7 per cent decline. Alphabet’s shares fell by 3 per cent, Facebook owner Meta slid 1.7 per cent, and Microsoft retreated by 2.5 per cent read more
 "In Wall Street shake-up, tech titans tumble as underdog shares rise")
Wall Street saw a mixed close on Thursday (July 25). AFP
Wall Street experienced a notable shift on Thursday (July 25), as smaller stocks and previously underperforming market segments rallied, while Big Tech stocks saw a significant pullback.
The S&P 500 fell by 27.91 points, or 0.51 per cent, closing at 5,399.22. In contrast, the Dow Jones Industrial Average rose by 81.20 points, or 0.20 per cent, to 39,935.07. The Nasdaq Composite, however, dropped by 160.69 points, or 0.93 per cent, to 17,181.72.
Tech titans lose ground
The slump, which began earlier in the week, was triggered by disappointing earnings reports from US electric car giant Tesla and Google-parent Alphabet, both of which are part of the “Magnificent Seven” stocks that have driven this year’s global market rally.
Among the major tech names, Amazon and Apple both shed 0.5 per cent, while Nvidia saw a 1.7 per cent decline. Alphabet’s shares fell by 3 per cent, Facebook owner Meta slid 1.7 per cent, and Microsoft retreated by 2.5 per cent.
These movements significantly impacted the market, given the considerable market value of these tech giants, which gives their stock fluctuations extra influence on the S&P 500 and other indices.
Bright spots amid the slump
Not all sectors were in decline. Ford Motor tumbled 18.4 per cent after reporting profits that fell short of expectations, with net income impacted by rising warranty and recall costs. However, ServiceNow emerged as a strong performer, with its stock jumping 13.4 per cent after reporting stronger-than-expected profit and revenue.
Airline stocks also soared, buoyed by American Airlines Group and Southwest Airlines reporting better-than-expected profits for the spring. American Airlines rose by 4.2 per cent, and Southwest Airlines increased by 5.5 per cent. IBM shares boosted the Dow, climbing 4.3 per cent after the tech company exceeded revenue estimates for the second quarter and raised its annual growth forecast for its software business.
Bond market movements
Economic data provided a temporary boost to market sentiment, with official figures showing the US economy grew at an annual rate of 2.8 per cent in the second quarter, well above the 1.9 per cent forecast by analysts. This growth occurred despite high interest rates, driven by strong consumer spending.
In the bond market, the yield on the 10-year Treasury slipped to 4.24 per cent from 4.28 per cent late Wednesday (July 24). This is a significant drop from its 4.70 per cent peak in April, providing a substantial boost to stock prices.
This week’s market activity illustrates the complex interplay of various economic forces and investor sentiments, highlighting the vulnerability of even the most robust stocks to fluctuations in earnings reports and broader economic data.
With inputs from agencies
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