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U.S. Stocks Open Higher, Turn Lower as Volatile July Nears End

2026-07-31·newswire-us-stock-181709
U.S. Stocks Open Higher, Turn Lower as Volatile July Nears End.

U.S. stocks opened higher Friday but turned lower as volatile July neared its end. A stock surge of 14% briefly lifted the market, while strong results also boosted a group of companies benefiting from the artificial-intelligence boom. At 10:14 a.m. New York time, the S&P 500 was down 0.4%, while the tech-heavy 100 Index was also down 0.4%.

The Philadelphia Semiconductor Index edged lower. One stock plunged 8.6%, its biggest intraday decline since April 2025, putting pressure on the major indexes. Component shortages weighed on the technology giant’s sales outlook, suggesting that supply constraints across the industry could have a more severe impact than expected.

With earnings season more than halfway over, industry research shows that 86% of the 291 S&P 500 companies that have reported results have exceeded expectations. That share is on track to reach its highest level in five years.

Although demand for artificial-intelligence-related products remains strong, the stocks of related companies have been highly volatile after a sharp market rally. Expectations are high, leaving companies with little room for disappointment.

Chip stocks have also swung sharply amid concerns about intensifying competition, possible excess capacity and whether billions of dollars in artificial-intelligence investment will generate returns. Max Kettner of HSBC said: “Has the unwinding of momentum trades ended?

A reversal in momentum could drive stocks to new all-time highs.” Billionaire Ken Griffin reached a deal with distressed hedge fund Situational Awareness, helping drive a relief rally in global artificial-intelligence stocks. Traders are debating whether the worst has passed or whether the market faces more turbulence.

Kettner said: “News about the unwinding of the artificial-intelligence hedge fund Situational Awareness provided the market with a welcome narrative to explain why chip stocks had come under renewed selling pressure over the past two weeks. We believe technical conditions have also improved significantly.

That creates a strong backdrop for a positive reversal in momentum trades.”

#Stocks #Semiconductors #Earnings #SP500

Full text

U.S. Stocks Open Higher, Turn Lower as Volatile July Nears End

U.S. stocks opened higher Friday but turned lower as volatile July neared its end. A stock surge of 14% briefly lifted the market, while strong results also boosted a group of companies benefiting from the artificial-intelligence boom. At 10:14 a.m. New York time, the S&P 500 was down 0.4%, while the tech-heavy 100 Index was also down 0.4%. The Philadelphia Semiconductor Index edged lower. One stock plunged 8.6%, its biggest intraday decline since April 2025, putting pressure on the major indexes. Component shortages weighed on the technology giant’s sales outlook, suggesting that supply constraints across the industry could have a more severe impact than expected. With earnings season more than halfway over, industry research shows that 86% of the 291 S&P 500 companies that have reported results have exceeded expectations. That share is on track to reach its highest level in five years. Although demand for artificial-intelligence-related products remains strong, the stocks of related companies have been highly volatile after a sharp market rally. Expectations are high, leaving companies with little room for disappointment. Chip stocks have also swung sharply amid concerns about intensifying competition, possible excess capacity and whether billions of dollars in artificial-intelligence investment will generate returns. Max Kettner of HSBC said: “Has the unwinding of momentum trades ended? A reversal in momentum could drive stocks to new all-time highs.” Billionaire Ken Griffin reached a deal with distressed hedge fund Situational Awareness, helping drive a relief rally in global artificial-intelligence stocks. Traders are debating whether the worst has passed or whether the market faces more turbulence. Kettner said: “News about the unwinding of the artificial-intelligence hedge fund Situational Awareness provided the market with a welcome narrative to explain why chip stocks had come under renewed selling pressure over the past two weeks. We believe technical conditions have also improved significantly. That creates a strong backdrop for a positive reversal in momentum trades.”

U.S. stocks opened higher Friday but turned lower as volatile July neared its end.

A stock surge of 14% briefly lifted the market, while strong results also boosted a group of companies benefiting from the artificial-intelligence boom.

At 10:14 a.m. New York time, the S&P 500 was down 0.4%, while the tech-heavy 100 Index was also down 0.4%. The Philadelphia Semiconductor Index edged lower.

One stock plunged 8.6%, its biggest intraday decline since April 2025, putting pressure on the major indexes. Component shortages weighed on the technology giant’s sales outlook, suggesting that supply constraints across the industry could have a more severe impact than expected.

With earnings season more than halfway over, industry research shows that 86% of the 291 S&P 500 companies that have reported results have exceeded expectations. That share is on track to reach its highest level in five years.

Although demand for artificial-intelligence-related products remains strong, the stocks of related companies have been highly volatile after a sharp market rally. Expectations are high, leaving companies with little room for disappointment. Chip stocks have also swung sharply amid concerns about intensifying competition, possible excess capacity and whether billions of dollars in artificial-intelligence investment will generate returns.

Max Kettner of HSBC said: “Has the unwinding of momentum trades ended? A reversal in momentum could drive stocks to new all-time highs.”

Billionaire Ken Griffin reached a deal with distressed hedge fund Situational Awareness, helping drive a relief rally in global artificial-intelligence stocks. Traders are debating whether the worst has passed or whether the market faces more turbulence.

Kettner said: “News about the unwinding of the artificial-intelligence hedge fund Situational Awareness provided the market with a welcome narrative to explain why chip stocks had come under renewed selling pressure over the past two weeks. We believe technical conditions have also improved significantly. That creates a strong backdrop for a positive reversal in momentum trades.”

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