S&P 500 Falls 0.40% as Big Tech Earnings Split Stocks

Key Takeaways

• At 15:15 BST on July 31, the Dow Jones Industrial Average was down 0.36% at 52,018.26 and the S&P 500 was down 0.40% at 7,408.07, according to Sharecast via Halifax.
• The Nasdaq Composite was 0.35% higher at 25,034.44, illustrating a split between broader equity weakness and technology-sector support.
• Amazon reported quarterly revenue of $200.6bn, AWS revenue growth of 37%, and advertising sales growth of 26% year on year; Apple traded lower despite revenue rising 16.4% to $109.42bn.
• The US employment cost index increased 0.9% in the second quarter, above the 0.8% economist expectation cited by our research, while July consumer sentiment was revised to 55.2 from 54.0 initially.

S&P 500 Falls 0.40% in the July 31 US Open

I saw US equities split sharply in the opening phase of the July 31 session. At 15:15 BST, the Dow Jones Industrial Average was down 0.36% at 52,018.26 and the S&P 500 had shed 0.40% to 7,408.07. The Nasdaq Composite, however, was 0.35% higher at 25,034.44. The trigger was a mixed read-through from large technology earnings, alongside a busy sequence of US macro releases and geopolitical headlines. My primary source is Sharecast’s July 31 US-open report.

our research does not provide FX, Treasury, gold, or oil prices, so I cannot verify a directional move in those markets. For index traders, the confirmed message is narrower: the broad market was lower, while the Nasdaq held a gain, creating a dispersion trade rather than a uniform risk-off session. Traders monitoring index liquidity can supplement headline reading with equity-session institutional positioning analysis, but should not infer unreported moves in correlated instruments.

Amazon Strength Meets Apple Services Concerns

Amazon delivered the stronger headline earnings narrative. The company reported its first $200bn quarter, with group revenue at $200.6bn. AWS revenue rose 37%, its fastest growth in more than four years, advertising sales increased 26% year on year to $19.8bn, and earnings were $5.75 per share, more than triple analysts’ expectations according to our research.

Apple’s reaction demonstrated why headline beats do not automatically translate into a rising share price. Revenue increased 16.4% to $109.42bn and earnings were $2.02 per share, including a $0.11 benefit from US tariff refunds. Yet Apple traded lower in early action after services and Greater China sales came up short. For me, this is the key mechanism behind the index split: investors were rewarding parts of the technology complex while reassessing the quality and composition of Apple’s growth.

That divergence matters to traders of Nasdaq-linked products. A single earnings headline can support an index, but a heavyweight company’s segment-level disappointment can still increase intraday reversals and spread risk across correlated technology positions. This is a session where Big Tech earnings order-flow context is more useful than assuming every technology name will trade in the same direction.

Labour Costs and Sentiment Add a Macro Layer

The macro releases added a separate set of inputs. The Bureau of Labor Statistics reported that the employment cost index rose 0.9% between April and June, slightly faster than the 0.8% increase economists had expected. On an annual basis, the index was up 3.4%, below the 3.5% consumer-price-index gain cited in the report.

That combination matters because labour costs are relevant to inflation and margin expectations. A quarterly increase above expectations can keep attention on wage pressure, while the annual pace trailing the cited CPI figure suggests compensation was not matching inflation over that comparison period. I would not claim a specific Federal Reserve implication from this release alone; our research contains no Fed guidance or market-implied rate reaction.

The University of Michigan consumer sentiment index was revised to 55.2 for July from its preliminary 54.0 reading. The report said this was the strongest reading since February, though sentiment remained 11% lower year on year. Year-ahead inflation expectations eased to 4.2% from 4.6% in June, while long-run expectations were unchanged at 3.3%.

For traders, the conflicting elements are important: sentiment improved and short-term inflation expectations eased, but household views remained weak year on year. This is not a clean macro signal. I would treat it as a reason to avoid overcommitting to a single rates or dollar narrative without fresh, directly reported price confirmation.

Market Impact Snapshot

Geopolitical Headlines Raise the Session’s Risk Premium

The report also said Iran’s army claimed it had launched strikes on strategic US assets and military bases in Kuwait and Bahrain following Washington’s latest attacks against Iran. This is a material geopolitical claim in our research, but our research does not independently verify it or provide a confirmed cross-asset price reaction.

I therefore would not present it as a confirmed driver of oil, FX, or safe-haven prices. What I can say is that such headlines can change intraday liquidity conditions quickly, especially when they arrive alongside earnings and data releases. Traders holding positions through the US session should distinguish between an established market move and an unverified claim capable of creating abrupt volatility.

The Chicago business barometer rose to 57.6 in July from 56.7 in June, above expectations for 56. That adds another data point showing business activity stronger than economists anticipated, but our research does not report an immediate market response. Its relevance is primarily as part of the day’s macro backdrop, not as proof of a tradeable move in a particular currency pair.

What I Would Watch Into the Close

The first focus is whether the Nasdaq can sustain its reported gain while the S&P 500 and Dow remain lower. Continued divergence would indicate that earnings-specific leadership is still dominating broader-market direction. A convergence lower would point to broader selling pressure; a convergence higher would suggest the technology bid is broadening. These are scenarios, not reported outcomes.

Second, monitor follow-through in Apple after our research-reported decline and whether Amazon’s revenue, AWS, and advertising growth continue to shape technology sentiment. our research provides no intraday price levels beyond index readings, so I cannot identify support, resistance, or company-specific price triggers.

For funded traders, this is a practical rule-checking day. Earnings, macro data, and geopolitical headlines can all widen execution uncertainty. Before trading index products around late-session headlines, review event-session challenge rules for equity volatility, use position sizing tools for index-event exposure, and assess how traders perform during volatile market conditions. If you are choosing a new evaluation after a choppy earnings week, compare firms built for volatile index sessions rather than selecting only on advertised profit splits.

Frequently Asked Questions

Why did the S&P 500 fall while the Nasdaq rose

our research reported that the S&P 500 was down 0.40% and the Dow was down 0.36% at 15:15 BST, while the Nasdaq was 0.35% higher. The report linked the session to mixed Big Tech earnings, including strong Amazon results and an early decline in Apple shares despite Apple’s overall revenue beat.

What did Amazon report this quarter

Amazon reported group revenue of $200.6bn, its first $200bn quarter according to our research. AWS revenue rose 37%, advertising sales climbed 26% year on year to $19.8bn, and earnings were $5.75 per share.

Why did Apple trade lower despite stronger revenue

Apple’s revenue rose 16.4% to $109.42bn and earnings came in at $2.02 per share, including a $0.11 benefit from US tariff refunds. our research said the stock moved lower because services and Greater China sales came up short.

What did the latest US data show

The employment cost index increased 0.9% in the second quarter, above the 0.8% expectation cited by our research, and was up 3.4% annually. The University of Michigan’s July consumer sentiment measure was revised up to 55.2 from 54.0, while one-year inflation expectations eased to 4.2% from 4.6% in June.

Kevin Nerway, Founder and Lead Analyst, PropFirmScan