US stocks closed mixed on July 24 (US Eastern Time), with the Dow Jones Industrial Average and S&P 500 edging higher while the Nasdaq Composite declined, driven by a sharp selloff in semiconductor stocks following investor concerns over Alphabet's capital expenditure plans. Technology stocks fell 0.88% as the only declining sector, while traditional industries including materials and real estate posted gains. The divergence reflected ongoing market reassessment of AI infrastructure spending after Alphabet indicated higher-than-expected capex in its earnings report the previous day, with geopolitical tensions between the US and Iran providing additional market backdrop.
US Stock Indices Close Mixed on July 24
The Dow Jones Industrial Average rose 235.60 points (0.46%) to close at 51,947.25 on the New York Stock Exchange (NYSE) on July 24 (US Eastern Time). The S&P 500 gained 3.68 points (0.05%) to finish at 7,411.98, while the Nasdaq Composite fell 161.87 points (0.64%) to end at 24,975.82. Market participants continued selling technology stocks amid perceptions that Alphabet's capital expenditures were excessive, following the company's disclosure the previous day that it would increase capex beyond prior forecasts.
Semiconductor Stocks Lead Tech Sector Decline
The Philadelphia Semiconductor Index plummeted 4.25%, with all 30 constituent stocks declining. TSMC, Broadcom, and ASML fell approximately 2%, while Micron Technology dropped 6.99%, AMD declined 3.29%, and ARM plummeted 8.14%. Micron, which had sustained an explosive rally since last year, saw its July decline reach 20.22%. Market logic suggested that worsening sentiment toward hyperscalers could weaken semiconductor demand proportionally.
Big Tech Stocks Show Divergent Performance
Despite the semiconductor rout, the overall technology sector's decline remained moderate as major tech companies acted as a brake. Apple rose 3.53%, approaching its previous week's all-time high. Alphabet and Microsoft closed near flat, while Nvidia and Amazon declined modestly. SpaceX and Tesla fell approximately 2%, with SpaceX's gap from its $135 offering price continuing to widen.
Traditional Sectors Attract Capital Rotation
All sectors except technology posted gains, with materials rising 1.44% and real estate advancing 2.36%. Capital exiting technology stocks flowed into traditional industrial stocks, with most Dow components rising. Walt Disney, Johnson & Johnson, and Home Depot each gained approximately 2%.
Geopolitical Tensions Add Market Uncertainty
The New York Times reported that US President Donald Trump planned to meet with top advisors and senior cabinet members to decide whether to intensify attacks on Iran. Bill Northey, investment director at U.S. Bank Asset Management Group, stated that events in the Middle East could affect the real economy if hydrocarbon flows became constrained, though he expected the base rate to remain unchanged next week. The US and Iran had continued military clashes for nearly two weeks without escalating into full-scale conflict. The CBOE Volatility Index (VIX) declined 0.12 points (0.64%) to 18.58. According to the CME FedWatch Tool, federal funds rate futures markets reflected a 38.6% probability of a 25 basis point rate increase by the end of December, nearly unchanged from the previous day.
FAQ
Why did US stocks close mixed on July 24?
US stocks closed mixed on July 24 (US Eastern Time) because semiconductor stocks fell sharply following investor concerns over Alphabet's capital expenditure plans announced the previous day, dragging down the Nasdaq Composite by 0.64%, while traditional sectors including materials and real estate posted gains that lifted the Dow Jones Industrial Average by 0.46%.
Which semiconductor stocks experienced the largest declines on July 24?
ARM fell 8.14%, Micron Technology declined 6.99%, and AMD dropped 3.29% on July 24 (US Eastern Time), while the Philadelphia Semiconductor Index overall plummeted 4.25% with all 30 constituent stocks declining amid concerns that worsening sentiment toward hyperscalers could weaken semiconductor demand.
