Dow gains as Apple offsets chip weakness, S&P 500 closes near flat

• Semiconductor sector weakness was driven by investor concerns over AI spending sustainability ahead of earnings from Microsoft, Amazon, Meta, and Apple, with the VanEck Semiconductor ETF (SMH) falling 3%.
• Oil prices retreated with Brent crude falling nearly 4% to $96.78 and WTI down 3% to $89.31, though Middle East tensions and potential US military escalation against Iran kept investors cautious heading into the weekend.
• The Trump administration imposed new tariffs of 10% and 12.5% on imports from 60 trading partners after a temporary 10% global tariff expired, while US services sector activity accelerated in July but manufacturing expanded at its slowest pace since March.

Market Summary: Mixed Session as Apple Gains Offset Chip Sector Weakness

Key Market Performance

US markets closed mixed on Friday, July 24, 2026. The Dow Jones Industrial Average rose 235 points (+0.5%), the S&P 500 edged up 0.05%, while the Nasdaq Composite fell 0.6%. For the week, all three indices finished lower, with the Nasdaq declining more than 2%.

Company and Sector Highlights

Apple emerged as the session's standout performer, gaining approximately 3% and single-handedly supporting the Dow's advance.

Semiconductor stocks faced broad-based selling pressure:

• Intel: -8% (despite beating Q2 expectations and raising guidance)
• Micron Technology: -7%
• Broadcom and AMD: each -3%
• VanEck Semiconductor ETF (SMH): -3%

The chip sell-off stemmed from growing concerns about AI infrastructure spending after Alphabet raised capital expenditure guidance despite reporting negative free cash flow. Investors are questioning the timeline for AI investments to translate into profitability ahead of upcoming earnings from Microsoft, Amazon, Meta, and Apple.

Other movers: Digital Realty Trust and SLB gained on strong earnings results.

Geopolitical and Economic Factors

Oil prices retreated from recent highs, with Brent crude falling nearly 4% to $96.78/barrel and WTI down 3% to $89.31/barrel, though Middle East tensions remained elevated following Houthi attacks on Saudi oil tankers and potential US military escalation against Iran.

Trade policy: New Trump administration tariffs of 10% and 12.5% were imposed on 60 trading partners after a temporary 10% global tariff expired.

Economic data: US services sector activity accelerated in July, while manufacturing expanded at its slowest pace since March.