Gold Rallies, Alphabet Earnings in Focus as Nasdaq Gains, Dow Slips

U.S. stocks finished Monday’s session on a mixed note, as a surge in gold prices and strength in tech shares helped lift the Nasdaq Composite, while the Dow Jones Industrial Average ended slightly lower. Meanwhile, investors looked ahead to Alphabet’s closely watched earnings report due later this week.

The Nasdaq gained 78.52 points, or 0.38%, to close at 20,974.20, supported by anticipation surrounding Alphabet’s Q2 results. The S&P 500 added 8.81 points, or 0.14%, to 6,305.60, while the Dow slipped 19.12 points, or 0.04%, to 44,323.10. The Russell 2000, a gauge of small-cap equities, declined 0.40% to 221.45.

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Alphabet Earnings in Focus

Alphabet Inc. is scheduled to report second-quarter earnings after the market closes on Wednesday, with investors closely watching developments across its advertising, cloud, and artificial intelligence (AI) segments. Analysts forecast revenue of $93.3 billion, representing year-over-year growth of approximately 10.7%, and earnings per share (EPS) of $1.90, up from $1.44 a year earlier.

While advertising remains Alphabet’s revenue backbone—accounting for around 74% last quarter—growth has slowed, prompting questions about sustainability. “We do expect Alphabet's revenue to continue to decelerate from levels we've seen last year,” said Angelo Zino, analyst at CFRA. “It's really going to come from their more ad-supported businesses”.

Zino also noted rising competitive threats: “As you get new ways to search and new platforms for advertisers, you're going to see Alphabet lose some share... They’ll still be the dominant player, but growth will likely trail the broader market”.

Cloud remains a bright spot. Google Cloud revenue is projected to grow 25% to 28% year-over-year to about $12.9 billion, continuing its trajectory of margin expansion. Alphabet’s ambitious $75 billion annual capital expenditure plan, much of it aimed at AI infrastructure, will be a key focus for investors.

Commodity Action: Gold Rallies, Oil Retreats

Gold futures for August delivery soared $51.40, or 1.53%, to settle at $3,409.70 per ounce, touching an intraday high of $3,416.80. Nearly 182,000 contracts changed hands, reflecting heightened investor demand for safe-haven assets.

In contrast, September crude oil fell $0.30 to $65.75 a barrel, with trading volumes near 224,000 contracts. The pullback in oil prices weighed on energy shares, even as broader market sentiment remained cautiously optimistic.

Market Breadth and Technicals

Advancers outpaced decliners on the New York Stock Exchange, with 56.4% of stocks rising and 40.9% declining. About 72.2% of stocks traded above their 50-day moving average, signaling underlying strength. However, relative volume measures suggested waning momentum late in the session.

Despite modest gains in the S&P 500 and Nasdaq, investors remain attuned to a range of macro and corporate drivers, including earnings, interest rate policy, and fiscal developments such as the recently passed Trump tax law, which the Congressional Budget Office said would add $3.4 trillion to deficits over the next decade.

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