Stock Market Hits Roadblock as Dow Drops 300 Points

The Dow Jones Industrial Average dropped 303 points, or 0.7%, after a record close was narrowly missed. Alphabet and Tesla led the way in the Magnificent 7 earnings season, with Alphabet's stock down 5.2% and Tesla's up 6.8%. The Nasdaq Composite gained 0.3%.

US markets experienced mixed performance on Friday, July 2, 2025, as investors reacted to earnings reports and ongoing trade negotiations. The Dow Jones Industrial Average (^DJI) dropped 303 points, or 0.7%, after a narrow miss of a record close. The S&P 500 (^GSPC) and the tech-heavy Nasdaq Composite (^IXIC) edged higher, with the S&P 500 rising 0.4% and the Nasdaq Composite gaining 0.3% [1].

The earnings season kicked off with notable performances from Alphabet (GOOGL) and Tesla (TSLA). Alphabet's stock fell 5.2%, while Tesla's stock surged 6.8% after their respective earnings reports. Alphabet's shares have remained relatively unchanged year-to-date, and investors are closely watching for signs of the health and benefits of AI infrastructure spending [4]. Tesla, on the other hand, has seen its stock decline by about 19% this year but showed strong performance after its earnings report [4].

Intel (INTC) also reported its earnings, with the stock falling 3% after the company reported a 1% decline in revenue for the second quarter. The slowdown was attributed to a weaker-than-expected performance in its data center business [3].

Trade negotiations continue to influence market sentiment. The US is nearing an August 1 deadline to strike trade deals or face "reciprocal" tariff hikes. Talks with India are reportedly deadlocked, while negotiations with the European Union continue to stall. There is some movement on China, with Treasury Secretary Scott Bessent set to meet his Chinese counterpart next week in Stockholm [3].

The European Central Bank maintained interest rates, signaling a wait-and-watch approach on the outcome of eurozone-US trade talks [2]. The US 10-year Treasury yield is up near 4.4%, while WTI crude oil futures are higher near $66.33 per barrel [3].

References:
[1] https://finance.yahoo.com/news/live/stock-market-today-dow-sp-500-nasdaq-nudge-higher-in-search-for-more-records-133715212.html
[2] https://timesofindia.indiatimes.com/business/international-business/us-market-today-dow-slips-on-tesla-drag-nasdaq-lifted-by-alphabet-trade-deal-hopes-support-sentiment/articleshow/122885117.cms
[3] https://www.investing.com/news/transcripts/earnings-call-transcript-deckers-outdoor-q1-2025-beats-expectations-stock-dips-93CH-4152151
[4] https://www.investopedia.com/the-stakes-are-high-for-big-tech-earnings-alphabet-tesla-magnificent-seven-11776291