The S&P 500 and Nasdaq opened higher on Thursday as investors assessed tech earnings and kept an eye on trade talks. However, the Dow slipped, dragged down by declines in IBM, Honeywell, and UnitedHealth. In the early hours of trading, Dow Jones Industrial Average dropped 233.9 points, or 0.52%, to 44,776.41. The S&P 500 edged up 9.7 points, or 0.15%, to 6,368.60, while the Nasdaq Composite gained 63.8 points, or 0.30%, to 21,083.82.
Alphabet rose 2% after reporting better-than-expected second-quarter earnings and revenue, helping boost the S&P 500 and Nasdaq. However, gains were limited by an 8% drop in Tesla shares, as the company’s auto revenue declined for the second consecutive quarter. IBM also saw some pressure. Meanwhile, investor focus shifted to the escalating tensions between President Donald Trump and the Federal Reserve. The White House announced that Trump will visit the Fed on Thursday, marking the first time in nearly two decades that a sitting U.S. president will make an official trip to the central bank, intensifying his pressure on Fed Chair Jerome Powell.
Following Wednesday’s earnings releases, the remaining tech megacaps are scheduled to report their results next week, except for Nvidia, which is expected to announce in late August. Meta and Microsoft will report earnings on Wednesday, followed by Amazon and Apple on Thursday.
In the previous earnings cycle, investors were concerned about the impact of steep tariffs on the tech sector and questioned whether the heavy investments in artificial intelligence would deliver returns or signal an emerging bubble. While stocks have since rebounded, the industry continues to face challenges stemming from President Donald Trump’s unpredictable global tariff policies and lingering uncertainty around future import duties. Last quarter, Apple, Amazon, and Alphabet all cautioned that strained trade relationships could hurt their profits by dampening product sales and advertising revenue.