Nasdaq opens higher on Alphabet earnings; Dow dragged by IBM and Tesla slump

The S&P 500 edged up 0.2%, while the Dow Jones Industrial Average slipped 302 points, or 0.7%, pressured by a 6% fall in IBM

US stocks opened on a mixed note Thursday as upbeat earnings from Alphabet lifted tech shares, while IBM and Tesla weighed on the Dow. The Nasdaq Composite rose 0.4% in early trade, powered by a 3% gain in Alphabet after the tech giant posted better-than-expected Q2 earnings and revenue.

The S&P 500 edged up 0.2%, while the Dow Jones Industrial Average slipped 302 points, or 0.7%, pressured by a 6% fall in IBM after the company missed software revenue estimates. Tesla also dropped 6% as automotive revenue declined for a second straight quarter.

Investors are also tracking fresh political tension, with US President Donald Trump set to visit the Federal Reserve later today — a highly unusual move that underscores his growing public criticism of Chair Jerome Powell. This would mark the first official visit by a sitting US president to the Fed in nearly 20 years.

The mixed open comes after Wednesday’s strong rally, which saw the S&P 500 notch its 12th record close of the year and the Nasdaq Composite cross 21,000 for the first time. Gains were supported by easing global trade tensions. A Financial Times report said the US and EU are nearing a tariff deal that could raise levies to 15% on EU imports. Bloomberg cited diplomatic sources confirming the progress.

“The market is being driven by a cocktail of strong tech earnings, receding trade uncertainty and now some real political theatre,” said Jeremy Siegel, professor at Wharton and senior economist at WisdomTree. “There’s enough momentum here to keep stocks buoyant, but the Fed visit throws in a wildcard.”

Global markets displayed cautious optimism as investors assessed mixed signals from key economies. In Asia, Japan’s Nikkei 225 gained 0.8%, buoyed by a weaker yen and positive export data, while China’s CSI 300 slipped 0.3% amid ongoing concerns over property sector debt and regulatory pressures.

In Europe, the Stoxx 600 rose 0.5%, supported by progress in US-EU tariff talks, though uncertainty lingers over potential disruptions from a looming U.K. general election. Crude oil prices steadied, with Brent crude at $79 per barrel, as OPEC+ signaled no immediate changes to production cuts despite rising Middle East tensions.

Meanwhile, a surprise uptick in Germany’s Ifo Business Climate Index to 87.2 for July bolstered hopes of a eurozone recovery, though persistent inflation concerns kept markets on edge. These global dynamics, combined with anticipation of the Federal Reserve’s next moves, are shaping a complex backdrop for US equities.