The Nasdaq Composite fell roughly 1.2% while the Dow Jones Industrial Average rose 0.7%, splitting Wall Street as traders positioned ahead of Tesla and Alphabet results. Analysts expect Alphabet to post revenue near $116.9 billion, with its AI spending under scrutiny.
The two headline US indices moved in opposite directions in the latest session. The Dow Jones Industrial Average rose 0.7%, while the tech-heavy Nasdaq Composite dropped approximately 1.2%. The divergence came as investors braced for quarterly results from Tesla and Alphabet.
Why the indices split
Positioning ahead of earnings drove the gap, according to Crypto Briefing. The Nasdaq's dip could prompt a rethink on tech stocks if Tesla's and Alphabet's numbers disappoint, while the Dow's rise might signal a temporary pivot toward more stable sectors. Short-term volatility is likely to linger until there is more clarity on how the two giants chart their course.
Alphabet's earnings in focus
Alphabet reports after the bell, and analysts polled by LSEG expect earnings of $2.89 per share on revenue of $116.9 billion. The earnings call begins at 4:30 pm ET.
Capital spending is the main test. In April, the company raised its 2026 capex guidance to between $180 billion and $190 billion, and the FactSet consensus sits at $187.1 billion. Cloud revenue is meanwhile expected to grow 64% to $22.24 billion, an acceleration from the prior quarter.
Google shares under pressure
Google stock has struggled into the print. Shares are up 11% for the year but are pacing for a third straight losing month. They dropped 1% in May, 6% in June and are set for a nearly 3% loss in July.
Tesla's earnings are also on the docket, another name tech investors are watching closely.
Sources: Crypto Briefing, CNBC
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