Just as Fed Chairman Keven Warsh was finishing up his press conference Wednesday afternoon, stocks nosedived, making the final hour of trading look like somebody had touched off a nuclear bomb.
Nothing quite as severe had happened. What did occur on Wednesday afternoon, ironically, was nothing, nothing other than the FOMC deciding to do nothing regarding the federal funds target interest rate, keeping the range steady at 3.50-3.75%, right where it has been since the FOMC meeting in December, 2025.
At 2:00 pm ET, the committee released the following statement:
The Federal Open Market Committee approved the following statement for release by a 9 – 3 vote:
The Committee decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent, in support of the Federal Reserve's dual mandate. The Committee is continuing its policy of maintaining ample reserves in the banking system.
Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East. Productivity growth and capital investment are strong. Job gains have kept pace with the workforce, and the unemployment rate has changed little.
Inflation remains elevated relative to the Committee's 2 percent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy. The Committee will deliver price stability.
Voting against the monetary policy action were Beth M. Hammack, Neel Kashkari, and Lorie K. Logan, who preferred to raise the target range for the federal funds rate by 1/4 percentage point at this meeting.
The brevity of the statement itself reflected the newfound policy of the Warsh Fed to be concise, factual, and devoid of innuendo or speculation. Notably, the policy statement leaned toward making the Middle East conflict and assorted supply chain disruptions the scapegoat for inflation. That point was brought home by Warsh during the perss conference, his measured response suggesting that although the recent bout of inflation was primarily cause not by monetary factors, but by market reactions to outside, geo-political decisions made by the White House, though he did not name any specific cause other than the 2000 pandemic and he recent spat with Iran.
Chairman Warsh is proving to be, after just two FOMC meetings, a crafty spokesman and a measured decision maker. Keeping rates steady over the past two meetings while offering no advance guidance on Fed policy prompted a hailstorm of questioning from the financial press, to the point of Bloomberg's Michael McKee asking, "what are you waiting for?"
Unaffected by the tone of questioning, Warsh handled the press with a delicate balance of statesmanship and reservation. While the press corps continued probing for answers or direction, Warsh batted them down, repeatedly expressing his commitment to keeping policy decisions firmly within the body of the FOMC, offering no advance indications on the direction of that policy.
Warsh's steadfast refusal to allow speculation over Fed policy has the press in a tizzy. Since the days of Bernanke, Yellen, and Powell giving the press plenty of meat on which to chew regarding the Fed's intentions, reporters have become accustomed to having clues dropped from the Chairman's podium and are now frustrated at Warsh's refusal to offer any hints or speculation on where Federal Reserve policy might be headed.
Perhaps it wasn't what Warsh said at the presser that sent markets reeling, but what he failed to say that engendered Wednesday's sudden market collapse. Maybe it was the realization that three board members had voted to hike rates, which turns out to be just about the only indication of where the Fed might be headed. Given that the market as a whole would prefer the Fed lowering the federal funds target rate, the thought that some members of the FOMC might prefer hiking instead sends chills through the structure.
That's likely what happened: Market participants, hoping for a lifeline of hope from the Chairman, bid stocks higher after the decision announcement and through the press conference. When none appeared, they did the only logical thing. They sold.
Reaction in international markets overnight and into the European session has been mostly positive, and stock futures are pointing to a higher open. Given the ferocity of Wednesday's bolt to the downside late in the session, the sudden jerk higher in stock futures should be regarded with caution. After all, the NASDAQ has dropped six straight sessions and nine of the last 10, with Wednesday's 600-point slide in the final hour of trading perhaps the most violent move of recent memory. It does not seem at all logical that stocks would suddenly reverse course and head higher. The futures have been reliable in at least one regard: as contrary indicators of the cash market. Higher at the open and lower at the close has become a trademark of the recent decline, one that has left the NASDAQ down 9.78% from the June 2 high (27,093.90).
Rounding out, that puts te NASDAQ squarely in correction territory, even by the widely-accepted 10% textbook qualifier.
After the close Wednesday, Microsoft (MSFT) and Meta Platforms (META) released second quarter results, with Mr. Softie getting the better of it, up nine percent in pre-market trading. META, which beat on revenue but missed on EPS, wasn't treated as kindly, the stock sent reeling, down nine percent overnight and into Thursday's pre-market, which giveth, then taketh away.
In a pertinent development, the U.S. economy grew at an annualized rate of 1.5% in the second quarter of 2026 (April–June), according to the Bureau of Economic Analysis’ advance estimate, released at 8:30 am ET Thursday morning. This was weaker than expected, with economists anticipating 2.1% growth. That reading should give investors pause. If the economy is indeed slowing, those three dissenters at the FOMC may be incorrect in assessing a need to tighten. Should economic conditions continue to devolve, sending rates lower - easing - may be the correct course, which, at this juncture, may be soothing to Wall Street bulls.
That didn't seem to faze markets in the least. At 8:45 am ET, Dow futures are up 178; NASDAQ futures are higher by 454 points, and S&P futures are showing a 48-point upside.
Gold and silver are slightly higher while WTI crude oil is steadying around $84-85/barrel.
The takeaway from the FOMC standstill has markets standing on the head of a pin. While a recovery in tech stocks may be developing, it's likely to be very short-lived. Amazon (AMZN) and Apple (AAPL) report after the close.
There's plenty to be confused about within this market and the market loathes uncertainty.
At the Close, Wednesday, July 29, 2026:
Dow: 51,594.14, -1,153.18 (-2.19%)
NASDAQ: 24,442.94, -433.97 (-1.74%)
S&P 500: 7,316.15, -112.63 (-1.52%)
NYSE Composite: 23,944.97, -284.70 (-1.18%)
The NASDAQ fell for the fifth straight session Tuesday and the eighth in the last nine.
If this isn't a correction, then there needs to be a new definition of what it is. Money is coming out of semi and Mag7 stocks and into basic materials, second tier cloud storage and cash. Some consumer-facing stocks are thriving, but others are feeling the effects of inflation and stretched family budgets.
The Mideast situation took a turn for the worse overnight as Houthis continued to target Saudi oil infrastructure. There's a good chance that negotiations will fail again and fighting between Iran and the U.S. will re-accelerate. Crude oil is higher overnight, WTI heading toward $85/barrel rapidly. Stock futures headed lower, especially the Dow, down 300 points at 9:00 am ET, with the NASDAQ and S&P flat.
After Tuesday's closing bell, companies rported second quarter results:
Visa (V) - Earnings beat, layoffs announced, shares down 2% pre-market
Teradyne (TER) - Beat, cites AI demand, shares up 15%
Avis Budget Group (CAR) - Huge miss, stock down 13%
Ford (F) - Solid quarter, shares flying 5% higher
Cheesecake Factory (CAKE) - Top and bottom beat, stock up 2.5%
Seagate (STX) - Record margins on AI storage boom, up 5%
Wednesday, before the open, these companies reported second quarter earnings:
Boston Scientific (BSX) - Cuts forecast, announces restructuring, stock down 5%
Generac (GNRC) - Beats on data center demand, shares 8-9% higher pre-market
Cognizant (CTSH) - Mixed results, poor forecast sends shares down 2%
ADP (ADP) - Solid quarter, forward guidance, stock is flat
Humana (HUM) - Earnings beat, shares down 2%
Proctor & Gamble - Soft outlook sends stock down 3%
SoFi (SOFI) - Record results, firmer guidance, stock down 5%
The big guns come out after the close when Meta Platforms (META) and Microsoft (MSFT) report.
It's a real mixed bag of earnings reports, giving investors plenty on which to trade, though recent trends suggest more selling ahead.
There's a FOMC policy announcement at 2:00 pm ET, though prospects for raising or lowering rates are close to nil. There's simply far too much data and geo-political theater for the Fed to do anything but sit on their hands at this juncture, though there's rumors for a 25 basis point hike, which would send stocks into a tailspin, so it is not likely.
The number to watch for on the NASDAQ is 24.384.51, which would make the correction "official."
At the Close, Tuesday, July 28, 2026:
Dow: 52,747.32, +537.24 (+1.03%)
NASDAQ: 24,876.91, -55.17 (-0.22%)
S&P 500: 7,428.78, +15.60 (+0.21%)
NYSE Composite: 24,229.67, +130.85 (+0.54%)
Somebody in the world of financial journalism needs to check the dictionary. Losing ground for the seventh time in eight sessions is not exactly a rebound for the tech sector, semis, the NASDAQ, or anything else.
Bounding out of the gate by more than 250 points, the NASDAQ gave that all away and was in the red by 10:30 am ET and stayed there the remainder of the session. There were nibblers at the bottom, when the indx was down nearly 200 points, and money came in late to end the day with only a minor loss.
But, the action on the day points up the overall weakness in the market. The Dow was up more than 600 points just after the opening bell, but surrendered more than half of those gains. The S&P spent the majority of the session bouncing back and forth over the unchanged line, eventually gaining 1.25 points, not something anyone can report without at least a little sense of sarcasm. The S&P has been devoid of direction for the better part of two months, even with a plethora of companies reporting good secnd quarter earnings.
The realization that Wall Street is not Main Street and the changing narratives from day to day on the situation in the Gulf region have become passé, to the point of being irrelevant. Everybody knows that the entire Middle East escapade has been a huge mistake and that there's no easy way out for President Trump and his war-happy neocon advisors. At least the annoying high-pitched squealing of Lindsey Graham is gone, though the party faithful continue to bring up his false bravado as though he were some kind of military demigod. At least his deminse opens the door for another voice, possibly with a better sense of reality, though brining in new faces to an already useless Senate and House doesn't really resonate as a solution to the nation's problems, which are many and diverse.
After Monday's close, reporting were the following:
Celestica (CLS) - Record revenue, raises forecast, shares lower by 4% pre-market
Nucor (NUE) - Top and bottom beat, shares flat
Rambus (RMBS) - Solid results, valuation issues take stock down 4%
Whirlpool (WHR) - Warns cu=onsumers are strapped, shares flat pre-open
Applied Digital (APLD) - Top and bottom beat, shares ahead by 3%
Tuesday moring, priro to the opening bell, these companies reported second quarter results:
Boeing (BA) - Earnings short of estimates, stock rises 1.5%
PayPal (PYPL) - Beat, raised guidance, stock down 1.5%
UPS (UPS) - Solid quarter, raises guidance, stck up 1%
HF Sinclair (DINO) - Earnings beat, raises dividend, shares up 4-5%
JetBlue (JBLU) - High fuel costs widen loss, shares higher by 1%
Corning (GLW) - Non-GAAP earnings beat, raises guidance, shares off 16%
Royal Caribbean (RCL) - Beat, cuts revenue guidance, stock up 1%
These companies offer something of a cross-secton of American business, but the reactions to earnings indicate that investors may have seen enoough, even from companies that are reporting strong quarters and raising forward guidance. The overwhelming theme this quarter has been to "sell the news", even if the news is of a positive nature. Without flinching, investors are taking profits and hiding in cash. A number of significant managers have indicated that they are more than 10-20% in cash presently, which is not good for stocks because the market needs a steady flow of capital into stocks, not out of stocks. Fear is on the rise and greed is represented by taking the money and running for safety.
Overnight, Asian tech shares sold off. Steep declines by chip makers SK Hynix and Samsung prompted the KOSPI Korean Exchange to briefly suspend trading twice in the main index, which fell by 10 percent. Japan’s Nikkei dropped four percent.
Carrying the trend over to the U.S., chip makers, tech, and just about anything related to AI is under pressure. Nvidia is close to a recent bottom (June 26th) and NASDAQ futures are down more than 200 points heading toward the open. The pre-market is a tale of two or three themes. While the NASDAQ suffers, Dow futures are 400 points higher, but the S&P is flat-lining.
As usual, gold and silver are selling off, bitcoin is off marginally, WTI crude oil is hovering in a range from $80-82 per barrel on hopes (here we go again) that some kind of deal can be worked out with Iran to end the five-month-long hostilities in the region. Anybody buying into that tired, repeated theme is simply playing with a dead hand of cards and little insight into the big picture.
There's a cruel wind heading toward Western economies. Politicians and Wall Street sharks know it and are moving to cash at an accelerated rate. Warren Buffett is still sitting on something on the order of $400 billion, readying to swoop in for deals when the dust finally settles. One thing can be said of Buffett and his strategies: he may often be early, but he's seldom wrong.
At the Close, Monday, July 27, 2026:
Dow: 52,210.08, +262.83 (+0.51%)
NASDAQ: 24,932.08, -43.74 (-0.18%)
S&{P 500: 7,413.18, +1.20 (+0.02%)
NYSE Composite: 24,098.82, +107.93 (+0.45%)
The NASDAQ dropped 544.42 points (-2.13%) during the week, sending the index to a 12-week low, down 7.82% from the all-time high on June 2nd (27,093.90).
Losing 7.82% in less thna two months is significant because most of it was centered in the AI trade of the Mag7 and semiconductors. The drop signifies that there is more than a little doubt about the levels of capital expenditures (capex) by the so-called "hyperscalers" to bring AI to its ultimate function as a reliable tool in banking, accounting, law, manufacturing, robotics, space exploration, you name it.
The truth is that AI is already very good at many tasks, but the kicker is that human input is still necessary. AI has not become self-aware or fully conscious as in the "Terminator" films in which intelligent Skynet robots set about to destroy humanity. It is not likely that AI will ever become fully autonomous. It may be able to instruct a robotic lawn mower to cut the grass on a regular schedule and avoid mowing when it's raining, but AI is probably never going to destroy the human race, as doomsayers insist.
AI is another tool in the tech arsenal. It's as useful as the handlers want it to be, because it is, after all, programmable. What the market is telling everybody with ears to hear and eyes to see is that the computing power necessary to fuel AI as a global asset is already beyond what most analysts see as a prudent investment. It will take years, perhaps decades, for the AI investments to pay off, if ever. Since the Mag7 and counterparts have so much money on hand and the ability to raise more through debt or equity offerings, the capex spending is unrestrained and will continue, no matter to what degree these malinvestments are pursued.
That's what the market said the week of July 20-24, the bulk of declines sequestered on the NASDAQ.
Outside of that, the other major indices didn't take any distressing drops. The Dow and S&P barely budged, but, importantly, they remain below recent highs and the usual catalyst of companies reporting solid earnings hasn't made any difference, largely because there are other, greater issues than profits and forecasts.
With the war against Iran continuing to wreak havoc on the global oil price and U.S. government debt approaching $40 trillion, earnings of even the best companies have been met with selling on second quarter announcements. Institutional money is leaving and investors are hoarding cash, awaiting the eventual downturn in markets that, like day turns to night, is only a matter of time. All-time highs registered just weeks ago are beginning to look like long-term tops. The U.S. system of financial repression and narrative-building has run its course. There's a very good likelihood that the entire second half of 2026 could be witness to one of the most destructive capital outflows of all time, rivaling the Great Depression, the dotcom bust, and the GFC. There simply isn't any more room for inflation to grow, consumers are just scraping by, and, while big companies may be producing strong earnings reports, balance sheets are beginning to feel some stress.
When everybody wants to cash out at once, that's when the banks are revealed to have engaged in enough fraud and counterfeiting that their doors need to be closed. The government, desperate to institute stablecoins as holders of treasury debt, are a band-aid for a deep gash. They won't work long-term.
So, here we are. How much faith do the American people and investing public have in government institutions? We're all about to find out, because this week's tech wreck wasn't a one-off. It was a warning shot across the bow of American finance.
Stocks
Stocks, for the better part of the week and especially the last three days, were not going anywhere but down. Friday provided some relief, but hardly enough to convince anybody that the worst was over. The NASDAQ dropped again on Friday and is already into a corrective phase. The nonsense that is current thinking says a correction is a 10% loss. Traditionalists, otherwise known as old people with critical thinking tools, know corrections can come in various flavors between five and 15%. The NASDAQ is already there, and, as tech makes up so much of the U.S. economy, it is likely to drag down the rest of the market, as it did in 2000.
There's an FOMC meeting this week (Tuesday and Wednesday), which is going to be so inconsequential that it almost can be completely overlooked. The Fed, under new chairman Warsh, is not going to surprise anybody, nor are they about to let anybody know what their members are thinking, leaving the front-running analysts without a convenient plaything. Tough noodles.
More big (and small) names will be reporting second quarter results this week, one of the busiest of the season:
Friday: (before open) ExxonMobil (XOM), Chevron (CVX), Moderna (MRNA), AutoNation (AN), Abbvie (ABBV), Dominion Energy (D), Colgate Palmolive (CL)
Data releases will be relevant. Monday brings Durable Goods Orders and the Dallas Fed. Tuesday: Retail and Wholesale Inventories, Case Shiller Home Price Index for June. Wednesday will be dominated by talk and analysis of the FOMC rate policy announcement. Thursday: Initial and Continuing Jobless Claims and the PCE Price Index (which may or may not still be the Fed's favorite inflation indicator) and the initial second quarter GDP estimate, which should be of utmost importance. Friday brings the University of Michigan consumer sentiment polling.
Relevant data releases can be found at Trading View.
Treasury Yield Curve Rates
Date
1 Mo
1.5 mo
2 Mo
3 Mo
4 Mo
6 Mo
1 Yr
06/18/2026
3.69
3.69
3.74
3.83
3.85
3.92
4.00
06/26/2026
3.70
3.70
3.75
3.83
3.89
3.94
3.94
07/02/2026
3.70
3.73
3.81
3.82
3.91
3.98
3.96
07/10/2026
3.71
3.74
3.81
3.85
3.94
3.99
4.06
07/17/2026
3.73
3.75
3.80
3.85
3.91
3.96
4.01
07/24/2026
3.80
3.88
3.95
3.96
4.04
4.08
4.14
Date
2 Yr
3 Yr
5 Yr
7 Yr
10 Yr
20 Yr
30 Yr
06/18/2026
4.19
4.19
4.23
4.34
4.46
4.91
4.90
06/26/2026
4.07
4.09
4.12
4.23
4.38
4.87
4.87
07/02/2026
4.14
4.16
4.23
4.35
4.49
4.99
4.98
07/10/2026
4.21
4.22
4.30
4.42
4.56
5.08
5.06
07/17/2026
4.18
4.21
4.28
4.40
4.55
5.07
5.06
07/24/2026
4.33
4.36
4.43
4.55
4.69
5.18
5.16
Treasury yields remained elevated, even to the point of blowing out. 30-year bond yields rose 10 basis points, with the 10-year note yield up 14. The 2-year continues to surge higher, suggesting trouble in consumer lending (autos, credit cards) within months, if not weeks. The 15 basis point move on the two-year was the largest move of the week, along with the 5-year.
TheFed has an FOMC meeting this week, though expectations for any kind of explosive rhetoric or announcement are quite low. The Warsh Fed is quickly becoming one of the most tight-lipped of the past four decades, which includes the Greenspan era, which was typified not by quietude, but obfuscation and mumbo-jumbo mumbling from the Fed head. This is quite different, harkening back to an age in which the Fed was enshrouded in secrecy and mystique.
Current indications are that despite a decline in speculative assets (stocks), the treasury market is no longer being viewed as a safe haven. Rather, it is viewed with great suspicion worldwide, begging the question of "return of capital" as opposed to "return on capital." In other words, distrust of U.S. institutions and financial shenanigans is under severe scrutiny. Kevin Warsh and his friends at the remodeled Eccles building have their hands full keeping the faith of an increasingly suspicious investor class.
Spreads continue to blow out, with the full spectrum at its second-highest level of the year.
August WTI crude futures closed out the week at $90.47, a major boost from last week's closeout at $81.77 on the NY Mercantile Exchange. Military action in the Mideast region continues to drive oil prices higher, though the intensity of attacks has diminished over the weekend. $100 oil is probably in the cards unless some kind of agreement between Iran, the U.S. and Israel is reached, so probably not very soon.
Average price for a gallon of unleaded regular gasoline in the U.S. was $3.97 last week and $4.07 this week, as the Middle East tinderbox exploded with military strikes throughout the region, the MOU between the U.S. and Iran completely shattered and an energy crisis dead ahead.
Reserves have been substantially drained by major economies around the world to keep prices under control, but they have largely reached bottoms. With reserves exhausted, conditions are ripe for a return to $5 gas in the U.S., as the president completely disregards the welfare of U.S. citizens. Prices should reach near-record levels in coming weeks as there seems to be no path toward resolution other than annihilation. It's a sad state of affairs.
On Sunday, July 26th, there are twenty-four (24) states with average prices at or above $4.00, a gain of seven from last week, with 24 below the $4 threshold, not including Hawaii ($5.39) and Alaska ($4.73), with two above $5 (California and Washington). The Southeast has maintained as the lowest region overall over the past nine weeks as a gallon of unleaded regular is averaging below $4.00 ($3.64-3.91) in places like Tennessee, Alabama, Arkansas, Georgia, Texas, and Mississippi, with the Midwest region a close second, prices ranging from $3.70 to $4.05. Exceptions include Florida in the Southeast and Michigan and Illinois in the Midwest. Indiana ($3.50) remained the lowest due to Governor Mike Braun suspending state taxes at the pump. On July 2nd he extended the suspension into the first week of August, which will hike the price by as much as 30 cents shortly.
Bitcoin
This week: $64,633.18
Last week: $64,539.98
2 weeks ago: $64,092.58
6 months ago: $88,536.09
One year ago: $119,283.70
Five years ago: $41,538.90
Bitcoin remained flat for the third straight week as the CLARITY act remains stalled in the Senate, the bandits in congress haven't fully endorsed the bill and it faces an uncertain future.
Bitcoin and crypto in general remain among the worst investments of 2026. Bitcoin is down 26% year-to-date.
Precious metals rebounded slightly on the week, surprising given the recent trend of following the moves in stocks. That's significant, given China raising margin requirements on paper gold to levels that effectively end the practice. For better or worse (probably better, for gold and silver buyers and holders), the price of gold will soon become the world's standard, based entirely on physical pricing, putting an end, eventually, to the fakery at the COMEX and LBMA. It's time to return to real money, and China has delivered a fat pitch to investors of precious metals.
Central banks are continuing to buy gold as a Tier 1` asset, outpacing Treasuries, and they're getting their loot at a discount, though for how long remain sto be seen. Gold and silver have been suppressed sufficiently in the West to foment action by Asian interests. The U.S. will likely respond as it usually does, by bombing any country trading oil for gold or Chinese yuan, but, overall, the end of paper contracts in China should be a restoration of a better global financial order.
The gold:silver ratio suggests silver may be a good play at these levels.
Here are the most recent prices for common one ounce gold and silver items sold on eBay (free shipping included, numismatics excluded):
Matthew Piepenburg of @GoldSwitzerland explains gold and silver's key underlying drivers, emphasizing that while prices have fallen since the beginning of the year, major global entities are taking the opportunity to load up.
WEEKEND WRAP
Stocks are paper promises, just as gold, oil, and commodity futures. The real things, gold, silver, actual oil stockpiles, food, equipment, profitable business interests, and collectibles are about to see the light of day in many different ways. The change may not be obvious at first, but physical assets appear to be favored over paper, especially as Western fiat currencies continue to be debased at an accelerated rate.
Play nice.
At the Close, Friday, July 24, 2026:
Dow: 51,947.25, +235.60 (+0.46%)
NASDAQ: 24,975.82, -161.87 (-0.64%)
S&P 500: 7,411.98, +3.68 (+0.05%)
NYSE Composite: 23,990.89, +116.61 (+0.49%)
For the Week:
Dow: -199.17 (-0.38%)
NASDAQ: -544.42 (-2.13%)
S&P 500:-45.71 (-0.61%)
NYSE Composite: +173.91 (+0.73%)
Dow Transports: -247.71 (-1.09%)
Disclaimer: Information disseminated on this site should not be construed as investment advice. Downtown Magazine Inc., Money Daily and it's owners, affiliates and/or employees are not investment advisors and do not offer specific investment advice. All investments have risk. You should consult a professional investment advisor or stock broker or use your individual judgement when making investment decisions. By viewing this site, you hold harmless Downtown Magazine Inc., Money Daily, its owners, affiliates and employees against any and all liability. Copyright 2026, Downtown Magazine Inc., all rights reserved.
The week thus far has not been a pleasant one for those in the bull camp.
For the NASDAQ, Tuesday was the only session returned to the upside. Those gains were gradually eroded on Wednesday and completely eviscerated by the fallout Thursday, as market fears of excessive AI capex spending, shaky private credit markets, escalation in the Middle East, and rising bond yields shook investors to their cores.
Hardest hit were the hyperscalers, with Alphabet (GOOGL) leading the slide, dropping 7.13%. Alphabet was added to the Dow Industrials just a week ago. Thursday's results dragged down the 30-stock blue chip index.
Amazon, which announced nothing, but is among the tech companies with the heaviest investment in AI capex, lost 4.57% on the day. Meta Platforms (META) lost 3.36%. Microsoft (MSFT) dropped two percent. Apple (AAPL) shed one percent.
Tesla (TSLA) lost 14% on the day, investors worried about the company's own spending plans on AI, self-driving taxis, and robotics. It surely didn't help matters when the company reported a profit of 31 cents in the second quarter when analysts were expecting 51 cents. Oops.
The NASDAQ broke through prior lows, ending the session at its lowest level since May 4. It is down more than seven percent from its June 2nd high (27,093.90). Trajectory indicates that the downdraft on the NASDAQ is far from over. The last time tihe index reported three straight winning sessions was June 15.
Early Friday morning, stock futures were sailing higher on the back of some sketchy earnings by Intel (INTC) which reported late Thursday. For the quarter, Intel blew away estimates, with earnings per share of $0.38 on revenue of $16.1 billion. Wall Street was anticipating EPS of $0.21 on revenue of $14.43 billion. The stock initially boomed more than 10% in after-hours trading.
With the cash open looming, those gains have been pared down to about three percent. After all, with the share price at its closing level of 100 on Thursday, the stock was already up more than 170% year-to-date and had recently topped out at 140 per share. Beating estimates that are low hurdles doesn't actually make the company a good investment. The wins this quarter don't even outweigh the losses from the first quarter ($3.7 billion). The chart, and the move from $41 in March to $140 in June looks to be mostly the work of insiders after the government took an equity position in the company.
Whatever the futures are forecasting for Friday probably are only going to provide a shot-term bounce that may not last the morning. The issues facing the market are not about to be resolved over the course of one session, one week, or even one month. This appears to be a long unwind that the elites wish to control by keeping reality at bay via the usual rosy narrative. It doesn't appear to be working very well.
As of Thursday's close, the Dow was down 434 points on the week. The NASDAQ was off 382, and the S&P was down 49 points. The week has been far short of an outright disaster. Friday's sentiment will complete the story. For now, it's not looking very positive. At 8:45 am ET, Dow futures are up 190, but are down from earlier highs. NASDAQ futures are up a very modest 12 points, and S&P futures are showing an 11-point gain, but all of them are beginning to slide toward the red.
Friday's trading may be more about testing positions, seeing whether the Mag7 stocks can regain some lost ground via dip-buyers, though even that would be pushing on a string. The AI narrative continues to break down; the War vs. Iran continues to devolve into what appears to be another forever war, the price of oil took a small dive overnight, but U.S. gas prices continue to rise, hitting a national average of $4.09 today, according to GasBuddy.com.
The June 2nd highs for the NASDAQ and S&P are beginning to look more and more like tops. The Dow, late to the party, peaked on July 6th (53,055.91) and is down a little more than two percent, but needs a catalyst to move forward and none appears to be in the works.
There's an FOMC meeting next week (July 28-29), but the Fed isn't likely to make any move, one way or the other. Tightening at this juncture would appear to be off the table. The latest rally - from the end of March to late June, early July, was built mostly on hope that the Mideast would be sorted out and oil would flow from the Gulf unimpeded. With that seemingly off the table, there's a world of worry setting the tone.
At the Close, Thursday, July 23, 2026:
Dow: 51,711.65, -506.93 (-0.97%)
NASDAQ: 25,137.69, -553.21 (-2.15%)
S&P 500: 7,408.30, -90.66 (-1.21%)
NYSE Composite: 23,874.27, -45.44 (-0.19%)
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