Stock Market News From Tuesday July 25: Dow Fell Nearly 300 Points
What caused technology stocks to perform strongly?
Technology stocks performed strongly due to a combination of factors, including significant earnings growth, higher interest rates disproportionately hurting long duration growth stocks, current economic cycle favoring cyclical leadership, and long-term AI beneficiaries potentially being outside of the tech sector1. Additionally, tech stocks have historically rebounded and recovered losses later in tightening cycles, and the AI revolution is expected to have a significant impact on the industry4.
How much did the S&P 500 and Nasdaq rise on that day?
The S&P 500 gained 0.4% and the Nasdaq Composite rose 1.3% on Tuesday, driven by a tech stock rally led by Nvidia and other technology stocks.
Why did the Dow fall on Tuesday, July 25?
The Dow fell on Tuesday, July 25, primarily due to the blue-chip index missing out on a tech stock rally. The Dow closed down nearly 300 points, or 0.8%, while the S&P 500 gained 0.4%, and the Nasdaq Composite moved 1.3% higher. The Dow's struggle to keep up was partly because it does not include Nvidia and some other key tech stocks.