Evening Market Recap

Sophia Reyes · July 23, 2025 6:53 PM

Market Snapshot for Wednesday 7-23-2025

Dow Jones – 45,010.29 (+1.14%)
NASDAQ – 21,020.02 (+0.61%)
S&P 500 – 6,358.91 (+0.78%)

Market Performance

U.S. stocks rose on Wednesday after the U.S. finalized a trade agreement with Japan, boosting investor optimism for additional tariff deals as Wall Street braced for earnings reports from Tesla (TSLA) and Alphabet (GOOGL, GOOG) after the closing bell.

The Dow Jones Industrial Average (^DJI) jumped more than 1.1%, or approximately 450 points, ending just four points shy of its first record close of 2025. The S&P 500 (^GSPC) advanced nearly 0.8%, while the tech-focused Nasdaq Composite (^IXIC) gained around 0.6%. Both the S&P and Nasdaq had previously closed at all-time highs.

According to President Trump, the new U.S.-Japan pact imposes a 15% tariff on Japanese imports—lower than the 25% rate that had been set to take effect next week. In exchange, Japan has committed to investing $550 billion into the U.S. economy. “It’s a great deal for everybody,” Trump said Tuesday evening.

Overseas, Asian markets closed broadly higher, with Japan’s Nikkei hitting a record high. Meanwhile, the U.S. dollar strengthened against major global currencies, and WTI crude extended its recent slide.

Economic Takeaways –

• Reports on Wednesday suggested a deal with the EU was taking shape, while Treasury Secretary Scott Bessent touted progress with China.
• The US dollar index (DX-Y.NYB), which tracks the value of the US currency against a basket of foreign currencies, has declined sharply and is now nearly 10% lower since Inauguration Day.
• Bond yields edged higher, with the 10-year Treasury yield rising to 4.37%, still below its May peak of around 4.60%.
• On Tuesday the S&P 500 index inched up to its 11th record high of 2025.
• The CME FedWatch Tool showed less than a 5% chance of a rate cut next week, but odds stand at 59% for at least one cut by September.
• After jumping in May, sales last month fell 2.7% to a seasonally adjusted annual rate of 3.93 million, according to National Association of Realtors data released on Wednesday.

Gold –

• The price of gold (GC=F) retreated on Wednesday after a three-day rally as President Trump’s trade deal with Japan relieved some demand for the safe-haven asset.
• Gold futures fell 0.18% to $3,437 ahead of the opening bell.
• Gold has climbed about 30% this year.
• Silver futures (SI=F), meanwhile, rose 0.6% to $39.80 an ounce, the highest since 2011.

Oil –

• Oil prices were little changed on Wednesday as investors assessed trade developments between the European Union and the U.S.
• Brent crude futures settled 8 cents, or 0.12%, lower at $68.51 a barrel, while U.S. West Texas Intermediate crude futures were down 6 cents, or 0.09%, at $65.25 per barrel.

Crypto –

• The price of Bitcoin has pulled back to $117K after failing to break resistance above $121,000.
• XRP has fallen 8.37% in the last 24 hours.

Alphabet Tops Q2 Estimates, but Capex Surge Weighs on Shares

Alphabet (GOOG, GOOGL) beat Wall Street expectations in the second quarter, with strong performance across its advertising and cloud segments. However, shares dipped more than 1% in after-hours trading as the company raised its capital expenditures forecast to $85 billion—up from its earlier projection of $75 billion.

For the quarter, Alphabet reported adjusted earnings per share of $2.31 on revenue excluding traffic acquisition costs (TAC) of $81.2 billion. Analysts had expected adjusted EPS of $2.17 and revenue ex-TAC of $79.6 billion. A year ago, Alphabet reported revenue of $71.3 billion for the same period.

Advertising revenue reached $71.3 billion, exceeding forecasts of $69.6 billion. Google Search generated $54.1 billion, topping expectations of $52.7 billion, while YouTube ad revenue came in at $9.8 billion versus the projected $9.5 billion. Meanwhile, Google Cloud revenue hit $13.6 billion, beating analyst estimates of $13.1 billion.

Tesla Falls Short on Q2 Earnings but Reaffirms 2025 Launch of Cheaper Model

Tesla (TSLA) posted a slight miss on both earnings and revenue for the second quarter but maintained that its “more affordable” vehicle remains on track for production in 2025.

The EV maker reported revenue of $22.50 billion, slightly below the $22.64 billion expected by analysts, and down 9% from the $25.05 billion it posted a year earlier. Adjusted earnings per share came in at $0.40, missing the $0.42 consensus, while operating income totaled $923 million versus the $1.23 billion forecast.

Despite the shortfall, Tesla shares edged higher in after-hours trading.
“We continue to expand our vehicle offering, including first builds of a more affordable model in June, with volume production planned for the second half of 2025,” the company said in a statement.

IBM Shares Dropped as Software Revenue Missed Expectations

IBM shares fell as much as 6% in after-hours trading Wednesday after the tech giant reported second-quarter results that beat Wall Street estimates but revealed softer-than-expected software revenue.

Here’s how IBM’s results compared to LSEG consensus estimates:

• Adjusted earnings per share: $2.80 vs. $2.64 expected
• Revenue: $16.98 billion vs. $16.59 billion expected

According to IBM, revenue increased nearly 8% year over year in the quarter, improving significantly from less than 1% growth in the first quarter. Net income, which includes acquisition-related expenses, rose to $2.19 billion, or $2.31 per share, up from $1.83 billion, or $1.96 per share, a year ago.

“While not a major factor overall, geopolitical tensions are prompting a few clients to move cautiously,” CEO Arvind Krishna said on a conference call with analysts. “U.S. federal spending was also somewhat constrained in the first half, but we do not expect it to create long term headwinds.”

Software revenue grew about 10% to $7.39 billion, just shy of the $7.43 billion consensus from StreetAccount. Hybrid cloud revenue, including Red Hat, increased 16%. The software unit’s gross margin was 83.9%, slightly below the 84.0% consensus.

“Clients reprioritized their spend to the hardware,” Krishna added.

 Top Gainers

Several stocks experienced significant gains. Some of the top gainers included:

• ABIVAX Societe Anonyme (ABVX) moved higher by 586.00%
• Liberty Energy Inc. (LBRT) soared by 17.78%
• Vicor Corp. (VICR) exploded 16.55%
• Lamb Weston Holdings (LW) surged 16.31%
• Hims & Hers Health, Inc. (HIMS) rose 16.02%
• D-Wave Quantum, Inc. (QBTS) moved up 15.41%
• GE Vernova, Inc. (GEV) rose 14.58%
• Pegasystems, Inc. (PEGA) spiked 13.92%
• Cal-Maine Foods, Inc. (CALM) moved up 13.80%
• Toyota Motor Co. Ltd. (TM) surged 13.64%

Top Losers

The top US stock losers today, based on percentage change included:

• Enphase Energy, Inc. (ENPH) moved lower 14.16%
• Fiserv, Inc. (FI) moved down 13.84%
• Texas Instruments Incorporated (TXN) sank 13.34%
• Otis Worldwide Corp. (OTIS) fell 12.38%
• MARA Holdings, Inc. (MARA) was down 11.62%
• Telix Pharmaceuticals (TLX) sank 10.44%
• Medpace Holdings, Inc. (MEDP) plummeted 8.44%
• PennyMac Financial Services, Inc. (PFSI) down 7.38%
• QuantumScape Corp. (QS) dragged 7.03%
• Sable Offshore Corp. (SOC) down 6.86%

Notables

• Tesla (TSLA) reported a slight earnings and revenue miss in the second quarter, but said its “more affordable” model was still slated for 2025 production.
• Google parent Alphabet (GOOG, GOOGL) beat expectations on the top and bottom lines on the strength of its advertising and cloud businesses. But the company said capital expenditures will climb to $85 billion. Google previously projected $75 billion.
• Chipotle (CMG) shares dropped over 7% in after-hours trading after the fast-casual restaurant chain reported a 4% decline in same-store sales for the second quarter. Analysts had anticipated a slightly smaller drop of just under 3%.
• Toyota (TM), Honda (HMC), and Nissan (NSANY) shares jumped Wednesday morning following confirmation of a trade agreement between the Trump administration and the Japanese government, according to Yahoo Finance’s Pras Subramanian.
• Wendy’s (WEN) shares rose nearly 5% on Wednesday, after jumping as much as 11% earlier in the session. The stock drew attention on Reddit’s r/wallstreetbets late Tuesday, where users floated the idea of a potential short squeeze. One commenter claimed Wendy’s “could be the next meme.”
• GoPro (GPRO) and Krispy Kreme (DNUT) also emerged as early contenders in what appears to be a renewed wave of meme stock momentum.
• MARA Holdings (MARA) shares dropped nearly 11% following the company’s announcement of a proposed $850 million debt offering.
• Kohl’s (KSS) shares dropped over 12% Wednesday morning, following a surge of nearly 38% the previous day driven by a meme stock frenzy.
• AT&T (T) stock fell despite the telecom provider reporting a huge subscriber beat.
• Constellation Energy Corporation (CEG) shares gained following PJM Interconnection’s release of its 2026-2027 capacity auction results. The grid operator set record prices at $329.17 per megawatt-day, driving total capacity costs up to $16.1 billion from $14.7 billion last year.
• Tequila maker Becle quadrupled its profit on foreign exchange gains.
• Neuralink has targeted $1 billion in revenue by 2031 according to a Bloomberg News report.
• Homebuilders continued their rally Wednesday following blowout results from D.R. Horton (DHI) and PulteGroup (PLTE), both of which saw double-digit gains Tuesday. Lennar (LEN) and Toll Brothers (TOL) also posted strong moves. Falling Treasury yields helped, alongside Trump’s floated proposal to eliminate capital gains taxes on home sales.
• Texas Instruments (TXN) plunged with investors reacting to a softer-than-expected third-quarter outlook. The company guided for earnings between $1.36 and $1.60 per share, with the low end falling short of the $1.51 consensus estimate. Despite topping Q2 expectations, the outlook weighed heavily. As Barron’s noted, Texas Instruments supplies semiconductors across industries including autos, industrial equipment, and consumer electronics, often making it a barometer of broader economic trends.
• Nvidia (NVDA) bounced after a 2% pullback Tuesday that appeared tied to profit-taking ahead of chip sector earnings. Nvidia won’t report until late next month, and analysts noted that TXN’s cautious outlook likely doesn’t reflect Nvidia’s AI-driven business. The focus now turns to whether top customers like Alphabet and Tesla will sustain their hefty AI hardware spending.

What to Watch Ahead

July 24: ECB interest rate decision, June new home sales, and expected earnings from American Airlines (AAL), Dow (DOW), Honeywell (HON), Southwest Airlines (LUV), Union Pacific (UNP), Intel (INTC), and Newmont Mining (NEM).

July 25: June durable orders and expected earnings from Aon (AON) and HCA Healthcare (HCA).