Why do heavy AI capex plans hurt stocks like Alphabet?

When a company raises its AI spending above what investors expected, near term profit and free cash flow take a hit. Shares can fall even with strong revenue growth, until that spending proves it pays off.

Why do geopolitical tensions push oil higher?

The Middle East accounts for a large share of oil production and transit, notably through the Strait of Hormuz. Any threat to supply, such as a conflict involving Iran, lifts crude prices and can rekindle inflation.

Why do new US tariffs worry markets?

Higher tariffs raise the cost of imported goods and can squeeze corporate margins and global growth. Markets also worry about retaliation from targeted countries, which adds to the uncertainty.

S&P 500 rebounds as Trump tariffs take effect

Published on July 24, 2026

Wall Street tries to catch its breath this Friday after its worst session of the month. US indices are rebounding in premarket trading, but new tariffs signed by Donald Trump take effect today on nearly 60 trading partners. The S&P 500 and Nasdaq are still on track for a losing week.

tariffs S&P 500 July 24 2026

Thursday was the Nasdaq's worst session of the month

Thursday's session will be remembered. The Nasdaq fell 2.15% to 25,137, the S&P 500 dropped 1.21% to 7,408, and the Dow Jones lost 507 points, or 0.97%, according to The Motley Fool. Tesla plunged nearly 15% as investors kept digesting the AI spending numbers the company and Alphabet flagged Wednesday evening. WTI crude jumped 5.8% to $91.84 after Houthi drone attacks on oil tankers, while gold fell 2.36% to $4,048.76 and the 10-year Treasury yield hit a 52-week high of 4.67%, per Benzinga. CNN's Fear & Greed Index slipped to 39.7, down from 43.3 the day before.

Indices attempt a rebound as new tariffs complicate the picture

This Friday morning, futures are recovering: the S&P 500 is up about 0.2%, the Dow 0.4%, while the Nasdaq stays close to flat, according to Yahoo Finance. But the bounce is playing out against new US tariffs that took effect overnight. The US Trade Representative (USTR) is applying a 10% duty on countries that ban forced-labor imports and 12.5% on those that have not, covering the top 60 US trading partners, or 99.4% of imports, according to the official USTR fact sheet. Some energy products are exempt. The Magnificent Seven alone shed nearly $800 billion in market value on Thursday, a number that shows just how sharp the tech correction has been.

The ECB confirms its pause, Europe surprises to the upside

On Thursday, the European Central Bank (ECB) left its deposit rate unchanged at 2.25%, as almost every economist expected, according to the ECB and Investing Live. The euro slipped slightly, notably against the British pound. This Friday morning brought a pleasant surprise on the eurozone's July flash PMIs: the composite came in at 51.9, versus 50.3 expected, its best reading in four months, driven by a solid services rebound and German manufacturing at 52.2 against a 50.5 forecast, according to Investing Live. The question now is whether the US reading, due this afternoon, shows the same resilience.

Key levels today

Instrument	Level (support / resistance)	Change (prior close)	Scenario / watch for
S&P 500	Support 7,400 / resistance 7,470-7,515, then 7,600	-1.21% (7,408)	Below 7,400, the 7,300-7,200 zone becomes the next logical pullback; above 7,470, a move back toward 7,515 then 7,600
Nasdaq Composite	Support 23,700 / resistance 27,000 (medium-term uptrend channel)	-2.15% (25,138)	The index stays within its longer-term uptrend channel, but a close below 23,700 would call the trend into question

Economic calendar

This afternoon at 9:45am ET (3:45pm Paris), the July flash composite PMI for the US is due. It stood at 51.9 in June. A reading above 51 would confirm the economy's resilience; a drop below 50 would revive slowdown fears already fueled by the new tariffs.

The new 10% to 12.5% tariffs take effect today on 60 trading partners. If targeted countries announce retaliation in the coming days, index volatility could return quickly.

Next week, the Fed meets July 28-29. No rate move is expected within the current 3.50%-3.75% range, but after this week's turmoil, the statement's tone will be watched closely.

The bottom line

Wall Street is trying to bounce back after its worst session of the month, caught between heavy AI spending and new tariffs. This afternoon's US PMI and next week's Fed meeting are the next events to watch. If you trade these indices, check our guide to picking a prop firm before sizing up on a session this volatile.

Get this kind of analysis every morning by subscribing to our newsletter. To follow markets live on your phone, download the TradingNerve iOS app on the App Store.

This is not investment advice. This content is provided for informational purposes only.