Wall Street Shocked by AI Surge: What Happened on July 24–25?
Major stock indices powered to fresh record highs on Thursday, July 24, as blockbuster AI-driven earnings ignited a tech rally reuters.com. The S&P 500 edged up 0.07% to notch its fourth consecutive record close, while the Nasdaq Composite gained 0.18% to its own all-time high reuters.com newsandsentinel.com. In contrast, the Dow Jones Industrial Average slumped 0.7%, dragged down by non-tech names less tied to the AI frenzy reuters.com. Investors were buoyed by a perfect storm of upbeat factors – resilient economic data, hopes for trade deal progress, and earnings that far exceeded expectations. “Investors are feeling optimistic about trade negotiations, about the economy, the trend in inflation, as well as the better-than-expected Q2 earnings reports,” noted Sam Stovall, chief investment strategist at CFRA Research reuters.com. With artificial intelligence the standout growth driver, traders poured into tech and AI plays, overshadowing worries about tariffs or recession for now. Google’s parent Alphabet stole the spotlight with robust Q2 results that underscored the payoff from heavy AI investment reuters.com. The company reported a fatter profit than analysts expected and announced a $10 billion boost to its 2025 capital expenditure budget – now $85 billion – largely to expand AI chips and data centers