Stock Market Closes at Record Highs Fueled by Alphabet's AI Optimism

Market Performance and AI Influence

• 📈 The S&P 500 closed at a record high, its 13th of the year, with Alphabet (Google) contributing significantly due to strong demand signals for artificial intelligence.
• 🚀 This AI optimism also boosted companies like Nvidia, which reached a new peak, underscoring AI's role in the current bull market.
• 📉 The Dow was a laggard, down over 300 points, while the Russell 2000 also dropped significantly.

Intel's Earnings and Turnaround Efforts

• 💡 Intel reported earnings, beating revenue estimates but showing a significant contraction in gross margins to 29.7%, missing analyst expectations of 36.6%.
• 💰 The company announced plans for job reductions, aiming to cut its workforce by approximately 15% and ending the year with around 75,000 employees.
• 🛠️ Intel is focusing on driving efficiency, cutting costs, and streamlining operations, with restructuring expected to be substantially complete by the fourth quarter of 2025.
• 📊 The foundry business saw a slight beat on revenue, but the company is slowing progress on certain expansion projects.

Other Company and Sector Highlights

• 👟 Deckers reported strong earnings, with shares up 10% after hours, driven by significant net revenue growth, particularly from its Hoka and Ugg brands.
• ⚡ Consumer discretionary, including car makers like Tesla, was a leading sector lower, while energy stocks finished in the green.
• 💰 Newmont also reported second-quarter sales above estimates, with gold production exceeding expectations.

Economic Indicators and Federal Reserve Watch

• ⚠️ Tesla shares sank following warnings from Elon Musk about difficult times ahead.
• 📉 Bonds dropped, with 10-year yields rising, as traders pared back bets on US rate cuts this year.
• 📊 US jobless claims fell for the sixth consecutive week, a trend that will be closely watched by the Federal Reserve ahead of its upcoming decision.