US stocks closed mixed on July 24 (local time) as falling oil prices eased inflation concerns and strong corporate earnings offset a sharp decline in semiconductor stocks. The S&P 500 rose 0.05% to 7411.98, while the Nasdaq Composite fell 0.64% to 24975.83 and the Dow Jones Industrial Average gained 0.46% to 51947.25, lifted by Apple's 3.5% advance. The divergence reflected investor caution ahead of next week's Federal Reserve policy meeting and earnings reports from Microsoft, Meta Platforms, and Apple. Oil prices dropped on reports that Pakistan is exploring a resumption of US-Iran negotiations under China's mediation, according to Reuters, with Brent crude falling 3.9% to $96.78 per barrel and WTI declining 3.1% to $89.31 after briefly surpassing $100 earlier this week. The Philadelphia Semiconductor Index plunged 4.3%, limiting broader market gains despite most S&P 500 components advancing.
Oil Prices Fall Below $100 on US-Iran Negotiation Reports
Reuters reported that Pakistan is exploring ways to resume negotiations between the US and Iran under China's mediation. The diplomatic development pushed Brent crude down 3.9% to $96.78 per barrel and West Texas Intermediate (WTI) down 3.1% to $89.31 on July 24 (local time), after both benchmarks briefly exceeded $100 earlier this week. The oil price decline pulled down US Treasury yields as energy-driven inflation concerns eased. UBS Chief Investment Officer Ulrike Hoffmann-Burchardy stated that while oil prices could retest this year's highs if military conflict escalates, oil transport through the Strait of Hormuz is likely to normalize over time, gradually reducing inflation pressure. She assessed that the Fed is unlikely to pursue aggressive tightening for this reason.
Philadelphia Semiconductor Index Drops 4.3% on Profit-Taking
The Philadelphia Semiconductor Index fell 4.3% on July 24 (local time) as investors took profits following recent gains in AI-related stocks. Intel dropped 7.9% despite reporting second-quarter results that exceeded market expectations. Broadcom declined 2.7%, AMD fell 3.3%, and Micron dropped 7%. The VanEck Semiconductor ETF (SMH) declined 3.3%. The selloff reflected valuation concerns after the sector's recent rally and increased short-term profit-taking sentiment.
Corporate Earnings Beat Expectations at Highest Rate in Five Years
Approximately 85% of S&P 500 companies that have reported earnings so far have posted profits above market expectations, according to Bloomberg Intelligence. This represents the highest proportion in the past five years. The strong earnings season has provided support for US stocks despite geopolitical tensions and sector-specific volatility. Thomas Lee, co-founder of Fundstrat Global Advisors, stated that "stock markets have tended to overreact to war-related news in recent years, but these risk-off phases often turn out to be buying opportunities," adding that "a similar pattern may emerge this time."
Trump Discusses Expanded Military Action Against Iran
President Donald Trump stated this week that he is considering a "massive attack" on Iran. The New York Times reported on July 24 (local time) that Trump discussed whether to expand military action against Iran with his top aides. The ongoing tensions have kept investors cautious despite diplomatic efforts. Trump's remarks followed earlier reports of potential military escalation in the Middle East.
Fed Meeting and Big Tech Earnings Scheduled for Next Week
Investors are shifting focus to the Federal Reserve's policy meeting and earnings reports from major technology companies scheduled for next week. Markets expect the Fed to keep interest rates unchanged while watching for signals on future monetary policy direction. Earnings from Microsoft, Meta Platforms, and Apple will provide insight into whether increased AI investment is translating into actual revenue and profit growth. US economic data released on July 24 (local time) showed that business activity in July expanded at the fastest pace in eight months, driven by strong services sector performance, and new home sales in June increased, partially easing recession concerns.
FAQ
Why did US stocks close mixed on July 24?
US stocks closed mixed on July 24 (local time) because falling oil prices and strong corporate earnings were offset by a 4.3% decline in the Philadelphia Semiconductor Index. The S&P 500 rose 0.05%, the Nasdaq fell 0.64%, and the Dow gained 0.46%.
What caused oil prices to fall below $100 per barrel?
Reuters reported that Pakistan is exploring ways to resume US-Iran negotiations under China's mediation. This diplomatic development pushed Brent crude down 3.9% to $96.78 and WTI down 3.1% to $89.31 on July 24 (local time).
How many S&P 500 companies have beaten earnings expectations this quarter?
Approximately 85% of S&P 500 companies that have reported earnings so far have posted profits above market expectations, according to Bloomberg Intelligence. This is the highest proportion in the past five years.
