NEW YORK, July 24, 2026, 12:08 EDT
- The Dow Jones Industrial Average (INDEXDJX:.DJI) rose 0.7% to close at 52,055.93, with U.S. markets staying open.
- Roughly 28% of a previous 306-point rise in the Dow was attributed to gains in two expensive components.
- Brent crude declined by 4.4%, and the Nasdaq Composite (INDEXNASDAQ:.IXIC) was down 1.3% for the week.
By 12:06 p.m. EDT on Friday, the Dow was up 344 points, rising 0.7% to reach 52,055.93. U.S. cash markets stayed open.
The shift almost wiped out the Dow’s losses for the week. The Nasdaq, however, remained 1.3% below its closing level last Friday. That divergence is significant.
The data indicates Friday’s relief was not widespread. The price-weighted Dow may climb even as the broader AI sector underperforms.
IBM NYSE:IBM and Salesforce NYSE:CRM accounted for around 86 points of a previous 306-point gain, contributing approximately 28% to the total move. In the Dow, a $1 shift in any component results in about a 5.94-point change to the index.
The comparison features real-time levels observed near midday along with closing prices from July 17. Changes for the week so far are subject to revision.
| Benchmark | Midday level | Friday | Provisional week-to-date |
|---|---|---|---|
| Dow Jones Industrial Average | 52,055.93 | up 0.67% | down 0.17% |
| S&P 500 (INDEXSP:.INX) | 7,452.63 | up 0.60% | down 0.07% |
| Nasdaq Composite | 25,184.37 | up 0.19% | down 1.32% |
Brent crude dropped 4.4% to $96.30, following a surge above $100 on Thursday. The yield on 10-year Treasuries slipped 3.4 basis points to 4.669%. This move eased some inflation concerns for equities.
Market breadth showed gains as well. Earlier on Friday, advancing stocks on the New York Stock Exchange outnumbered decliners by a ratio of 1.75 to one. However, decliners on the Nasdaq remained marginally ahead.
Investors continued to sell off companies with hefty spending and no immediate profits. Intel NASDAQ:INTC dropped 3.8%, even though it posted $16.1 billion in revenue for the quarter. Sales climbed 25%, and its forecast for the next quarter exceeded expectations.
“Markets are growing more selective,” said Daniela Hathorn, senior market analyst at Capital.com. According to her, investors are looking for more concrete returns from higher levels of spending. Reuters
Shares of American Express NYSE:AXP dropped about 6%. The company reported earnings of $4.53 per share, surpassing predictions. Still, American Express maintained its current full-year profit outlook.
Shares of Verizon Communications NYSE:VZ climbed roughly 3%. The company increased its guidance for adjusted earnings and free cash flow. Additionally, a $1 billion fiber agreement with Alphabet NASDAQ:GOOGL provided further momentum.
The Dow fell by 507 points on Thursday before bouncing back on Friday. The Nasdaq slid 2.2% after Alphabet and Tesla NASDAQ:TSLA posted earnings, with both companies citing substantial spending and negative free cash flow.
A bigger challenge is coming next week, when the Federal Reserve will convene ahead of June inflation figures. According to rate futures, there is about a 33% probability of a rate hike.
Next week, Microsoft NASDAQ:MSFT, Amazon NASDAQ:AMZN, Meta Platforms NASDAQ:META, and Apple NASDAQ:AAPL are scheduled to report. Investors will closely watch their capital expenditure plans.
Oil, interest rates, and artificial intelligence spending continue to be key risk factors. A new flare-up in the Middle East could undo Friday’s drop in crude prices. Should the Federal Reserve adopt a hawkish stance, it may weigh on higher-valued Dow shares.
Dow investors saw a 340-point gain in headlines, but that does not tell the complete story. While market breadth picked up, some high-priced stocks continued to exert an outsized influence. The Nasdaq finished the week lower, highlighting ongoing volatility in the AI sector.
