Stock Market Today: Dow Falls Amid Big Tech Loses, Fed Meeting Looms

The Dow Jones index closed mixed, with some high-profile names in the red, such as Tesla and Apple. However, the overall trend remains up and to the right, with a risk-on edge. The yield on the 2-year Treasury note inched up to 3.912%, while the 30-year yield inched back to 4.948%. Alphabet reported solid earnings, while Tesla missed expectations. Other members of the Mag 7, such as Amazon and Microsoft, posted gains.

The Dow Jones index closed mixed on July 2, 2025, with notable movements among key names. While some high-profile stocks, such as Tesla and Apple, ended the day in the red, the overall trend remains bullish with a risk-on sentiment. The yield on the 2-year Treasury note inched up to 3.912%, and the 30-year yield backed off slightly to 4.948%.

Tesla (TSLA) shares declined by more than 8% after reporting quarterly numbers that fell short of Wall Street expectations. The company's earnings report indicated a 20% year-over-year decline in automotive revenue, with operating income off by nearly 50% from all-time highs [2]. Despite the earnings miss, Tesla's stock trades at a nosebleed price-to-earnings (P/E) ratio of 179, suggesting that investors are still optimistic about the company's future prospects.

Apple (AAPL), another major component of the Dow Jones, saw its stock price drop after the company's earnings report indicated slow growth. The iPhone maker's dominance in smartphones is undeniable, but smartphone upgrades are decreasing due to the minimal differences between new devices every year. This has led to stagnant device sales since 2022. Apple's P/E ratio of 33 suggests that investors are expecting significant growth, which may not materialize in the near future [2].

Alphabet (GOOG) shares climbed 2% after the company reported better-than-estimated earnings and boosted its capital spending plan. Other members of the "Mag 7," such as Amazon (AMZN) and Microsoft (MSFT), also posted gains, indicating a strong performance in the tech sector.

The mixed performance in the Dow Jones index was also influenced by ongoing trade talks and tariff uncertainty. President Donald Trump has secured trade agreements with Japan, Indonesia, and the Philippines, and progress is being made in discussions with the European Union and other leading trade partners. However, the August 1 deadline for the U.S. to impose hefty tariffs on imports looms, which could spark inflation and impact corporate profits [3].

In conclusion, the Dow Jones index closed mixed on July 2, 2025, with notable movements among key names. While some high-profile stocks, such as Tesla and Apple, ended the day in the red, the overall trend remains bullish with a risk-on sentiment. The earnings reports and trade talks continue to influence market movements.

References:
[1] https://www.fxempire.com/forecasts/article/nasdaq-index-sp500-dow-jones-forecasts-dow-jones-retreats-as-ibm-dives-7-8-1536188
[2] https://finance.yahoo.com/news/sell-2-popular-magnificent-seven-161900623.html
[3] https://www.investopedia.com/dow-jones-today-07242025-11778140