Wall Street Mixed as Alphabet Soars on AI, Tesla Dips on Tariffs
New York, NY – July 24, 2025 – Wall Street experienced a mixed trading session on Thursday, with the S&P 500 and the tech-heavy Nasdaq Composite closing at record highs. The surge was largely propelled by robust second-quarter earnings from Alphabet,the parent company of Google,which demonstrated the growing financial impact of artificial intelligence (AI).
the S&P 500 gained 0.07%, reaching 6,363 points, while the Nasdaq Composite advanced 0.18% to 21,057 units. In contrast, the Dow Jones Industrial Average saw a decline of 0.7%, settling at 44,693 points. this dip was substantially influenced by a sharp 7.6% drop in IBM’s stock following its earnings report, which failed to meet investor expectations.
Alphabet announced on Wednesday that its second-quarter profits soared to $96.428 billion, a 13.7% increase year-over-year. This growth was attributed to the strong performance of its cloud computing division and its investments in AI. “Alphabet’s results have provided a much-needed boost to a market that is constantly questioning the return on AI investments,” commented Ross Mayfield, an investment strategist at Baird.
Tesla Faces Headwinds
Conversely, Tesla, led by CEO Elon Musk, disappointed investors with its second-quarter financial results. The electric vehicle manufacturer reported a 16% decrease in net profits, totaling $1.172 billion for the period.
During an investor call, Tesla’s Chief Financial Officer, Vaibhav Taneja, highlighted the impact of U.S. President Donald Trump’s tariffs, which cost the company $300 million in the second quarter.Taneja also noted that the recently approved fiscal megaproject, which includes the elimination of the $7,500 tax credit for electric vehicles, is expected to constrain Tesla’s vehicle supply within the North American market.
Tesla’s shares fell 8% by the market close. Investors are closely watching for potential new trade agreements, especially after the U.S. announced “reciprocal” 15% tariffs with Japan on Tuesday.
Market participants also focused on president Trump’s visit to the federal Reserve, where he met with Chairman Jerome Powell. Trump has previously called for Powell’s dismissal.
Among the Dow Jones components, Chevron saw a 1.77% increase, and NVIDIA rose by 1.73%. The largest decliners were IBM, down 7.62%,and Honeywell International,which fell 6%.
In othre market movements, the price of West Texas Intermediate (WTI) crude oil rose 1.2% to $66.03 per barrel. Gold prices declined to $3,372, while the yield on 10-year Treasury bonds increased to 4.4%. The euro traded at $1.1749 against the dollar.
