Wall Street ended mixed on July 24 as renewed concerns over the enormous cost of artificial intelligence (AI) infrastructure triggered a semiconductor sell-off, while falling oil prices helped the broader market steady after a volatile week.
According to Reuters, the Dow Jones Industrial Average climbed 235.60 points, or 0.46%, to 51,947.25, while the S&P 500 edged up 3.68 points, or 0.05%, to 7,411.98. The tech-heavy Nasdaq Composite dropped 161.87 points, or 0.64%, to 24,975.82.
Technology was the S&P 500’s weakest sector, falling 0.88%, as investors questioned whether the rapid expansion of AI-related capital expenditure would generate profits quickly enough to justify its scale. Sentiment weakened after Alphabet unveiled a sharp increase in spending, with markets now turning to upcoming earnings from Microsoft, Amazon, Meta and Apple.
Intel tumbled 7.9% despite forecasting quarterly profit and revenue above Wall Street expectations and outlining plans to increase investment over the next two years. The Philadelphia Semiconductor Index sank 4.5%, reflecting broader pressure across chipmakers.
Oil’s retreat provided some relief. Crude futures fell about 3% as traders locked in profits following a five-session rally and reports emerged that China was pushing to revive stalled US-Iran peace talks. However, continued US strikes on Iran kept geopolitical risks firmly in focus.
Real estate led sector gains with a 2.4% rise, supported by an 11% rally in Digital Realty Trust after the data-centre operator raised its full-year funds-from-operations forecast. Materials advanced 1.44%, with International Paper surging 11.2% and Smurfit Westrock gaining 11.1%. Oilfield services company SLB also jumped 11% after beating second-quarter profit expectations.
Investors also assessed new US tariffs of 10% and 12.5% on goods from 60 trading partners, alongside data showing stronger services activity in July but the slowest manufacturing growth since March.
For the week, the Dow slipped 0.4% for its third consecutive weekly decline. The S&P 500 lost 0.6%, while the Nasdaq fell about 2%, with both indexes recording a second straight weekly loss.
