Stock Market Summary – July 31, 2025

The U.S. stock market is seeing a shift towards AI, with tech companies like Meta and Microsoft reporting strong earnings, according to Josh Brown, CEO of Ritholtz Wealth Management. The top five AI-related stocks, including Nvidia, Microsoft, Apple, Amazon and Alphabet, are seeing record gains. However, this focus on AI stocks is overshadowing poor performances from companies traditionally seen as indicators of U.S. economic and consumer health, such as Chipotle, Nike and Starbucks.

The Securities and Exchange Commission (SEC) has introduced “Project Crypto” to modernize rules and regulations for crypto-based trading. It aims to move markets from an off-chain to on-chain environment, meaning digitized trading of securities using blockchain. As part of this initiative, SEC Chair Paul Atkins has directed the Commission staff to update outmoded agency rules to unleash the potential of on-chain software systems in securities markets.

The S&P 500 turned negative as major drugmakers’ shares dropped following President Trump’s social media post calling for a reduction in drug prices. Yet, shares in Meta Platforms and Microsoft both rose following positive earning reports. Significant market movements today also relate to the launch of software firm Figma on the New York Stock Exchange; its shares more than tripled on the first day of trading, reaching a peak of $112.

Apple is due to report its fiscal third-quarter earnings after the bell, with sales expected to reach nearly $90 billion for the period, marking a 4% increase from the previous year. Still, the company faces questions concerning the tariff situation and its impact on upcoming quarters.

In conclusion, strong earnings reported by AI-related tech companies have driven recent record gains in the stock market, while other sectors are experiencing underperformance. Meanwhile, the SEC’s introduction of “Project Crypto” signals a significant move towards blockchain-based trading. The software firm, Figma, has seen successful trading on the NYSE and Apple is anticipated to report significant sales for the fiscal third-quarter.

In the stock market news, Generac shares increased by 8% on a positive note from Bank of America, while Baxter International fell around 20% after weak-than-expected Q2 results and an earnings guidance downgrade. Integra LifeSciences surged 11%, C.H. Robinson jumped 17%, and Xerox plunged 20% following Q2 results. Media company Paramount fell 8% ahead of a shareholder vote related to its Skydance merger. CVS Health gained 2%, Comcast added 2%, Norwegian Cruise Line rallied 9% on mixed earnings, and Meta Platforms jumped nearly 12% following strong Q2 revenue results and Q3 outlook. Microsoft shares rose 4% on strong Q4 results. AI cloud computing stock CoreWeave rallied 14%, and Western Digital gained 9% after strong Q2 results. Carvana surged 18%, outperforming estimates, but Align Technology sank 35% after missing Q2 expectations.

Amazon is expected to report Q2 earnings per share of $1.33 and revenue of $162.09 billion with potential adverse effects from “tariff and trade policies” and “recessionary fears.”

Apple, facing a 17% slump since the start of 2025, is predicted to deliver Q3 fiscal results matching Wall Street expectations with potential earnings growth of 2.4% and a revenue rise of 4.4% year-on-year.

Chip designer Arm Holdings shares fell over 13% after giving a muted earnings forecast, predicting Q2 adjusted earnings between 29 cents and 37 cents per share, and revenue between $1.01 billion and $1.11 billion.

Meta’s commitment to significant AI infrastructure spending led to a 10% increase in the social media giant’s share value. Technology heavyweights’ escalating investment in AI is also seen as potentially beneficial for chipmakers Nvidia, Advanced Micro Devices, Broadcom, and Micron.

More detailed numbers on major stock market indices including Dow, S&P, and Nasdaq, as well as other main gainers and losers are not reported in the provided articles text.