On Thursday, the S&P 500 and Nasdaq achieved record highs, driven by strong gains in Alphabet Inc (LON:0RIH), which surpassed expectations for its second-quarter earnings and indicated ongoing investments in artificial intelligence.
Alphabet’s (NASDAQ:GOOGL) robust earnings and optimistic guidance boosted other AI-related stocks, including NVIDIA Corporation (NASDAQ:NVDA), which rose 1.8% amid expectations of sustained chip demand.
The AI sector also received a lift from President Trump’s signing of three executive orders to promote the industry, complementing a detailed 90-part plan for AI advancement in the U.S.
In contrast, the Dow Jones Industrial Average declined by 0.7% to 44,694.09 points, largely due to losses in IBM, Honeywell, and UnitedHealth.
Tesla experienced a significant drop of over 8% following disappointing second-quarter earnings that revealed ongoing declines in car sales.
Intel Corporation (NASDAQ:INTC) fell 3.7% and continued to drop another 4.5% in aftermarket trading after projecting a larger-than-expected third-quarter loss, despite anticipating increased revenue. The company’s latest cost-cutting efforts, which involve additional layoffs, also failed to impress.
