U.S. stock markets closed mixed on July 24, 2026, with the Nasdaq Composite declining amid weakness in semiconductor shares as investors grew apprehensive about the scale of capital expenditure tied to artificial intelligence initiatives.

The Dow Jones Industrial Average posted gains, while the S&P 500 finished the session nearly flat.

AI Spending Concerns Pressure Chip Stocks

Semiconductor companies, which form a significant weighting in the Nasdaq, came under selling pressure as market participants questioned whether the massive investments being funneled into AI infrastructure would deliver commensurate returns. The technology-heavy Nasdaq has been particularly sensitive to developments in the AI sector, where companies across the industry have committed tens of billions of dollars toward data centers, specialized processors, and related infrastructure. Chip stocks have been among the strongest performers in recent years, driven by surging demand for high-end GPUs and accelerators used in training and running AI models, leaving them vulnerable to any sign of slowing order momentum or delayed deployment timelines.

The unease comes ahead of earnings reports from major technology firms, whose results are expected to provide clarity on whether AI-related revenue growth is keeping pace with the elevated levels of spending. The reports carry added weight because several of these companies rank among the largest by market capitalization, meaning their results can heavily influence index-level moves.

Oil Prices and Geopolitical Factors

Declining oil prices offered a measure of support to broader equity markets, partially offsetting the drag from the technology sector. Lower crude prices can reduce input costs for businesses and ease inflationary pressures, factors that tend to benefit equities outside the energy sector.

However, persistent geopolitical tensions and ongoing developments related to U.S. trade tariff policy kept overall investor sentiment cautious. Market participants have been monitoring these factors for their potential impact on corporate earnings, supply chains, and economic growth. Semiconductor companies are especially exposed to trade policy shifts, as the industry relies on a globally integrated supply chain spanning chip design, fabrication, and packaging across multiple jurisdictions.

Earnings Season in Focus

Attention now turns to the upcoming slate of quarterly earnings releases from major technology companies. These reports are widely viewed as a key test of whether the substantial capital allocations toward AI capacity are translating into meaningful revenue and profit growth, a question that has grown more pressing as valuations in the sector have climbed. Beyond headline earnings, investors are expected to scrutinize forward guidance on capital expenditure and any commentary on data-center demand trends for signals about the trajectory of AI infrastructure investment.

Market data as of 01:18 AM IST on July 25, 2026.

Source: Economic Times Markets