Chip capex concerns cooled the tech party, yet AI cloud software is already bringing in the returns

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Morning brief: The AI bill landed for big tech and Tesla stalled, but Lockheed is reminding us what real growth looks like

Tech Sector Selloff Ignites Market Fear: The Nasdaq faces its worst drop since 2022 as disappointing big tech earnings trigger an AI reality check. Tesla Shares Dive on Profit Miss: Shares crashed 14.52% after Q2 auto margins shrank and Elon Musk delayed the highly anticipated robotaxi reveal. Lockheed Martin Surges on Guidance Hike: LMT jumped 10.54% after posting a strong Q2 earnings beat and raising its full-year outlook on robust defense demand. Alphabet Drops Amid Heavy AI Spend: GOOGL sank 7.13% despite an earnings beat as massive AI spending and soft YouTube ad revenues spooked investors. Watch For Upcoming MegaCap Tech Earnings: Exxon and NextEra report this morning, but next week's Microsoft and Meta earnings will decide if this AI selloff sticks.

Tech Sector Selloff Ignites Market Fear

The Nasdaq faces its worst drop since 2022 as disappointing big tech earnings trigger an AI reality check.

Tesla Shares Dive on Profit Miss

Shares crashed 14.52% after Q2 auto margins shrank and Elon Musk delayed the highly anticipated robotaxi reveal.

Lockheed Martin Surges on Guidance Hike

LMT jumped 10.54% after posting a strong Q2 earnings beat and raising its full-year outlook on robust defense demand.

Alphabet Drops Amid Heavy AI Spend

GOOGL sank 7.13% despite an earnings beat as massive AI spending and soft YouTube ad revenues spooked investors.

Watch For Upcoming MegaCap Tech Earnings

Exxon and NextEra report this morning, but next week's Microsoft and Meta earnings will decide if this AI selloff sticks.

Posture: Defensive. With the Fear index at 39 and tech selling off amid AI spending concerns, we are building cash and awaiting mega-cap tech earnings.

Tickers in focus: QQQ, TSLA, LMT

Upcoming earnings

  • NEE — 2026-07-24, Before Market Open
  • XOM — 2026-07-24, Before Market Open
  • SCCO — 2026-07-27, TBD
  • BE — 2026-07-28, After Market Close
  • KO — 2026-07-28, Before Market Open
  • HOOD — 2026-07-29, After Market Close

Evening brief: Chip capex concerns cooled the tech party, yet AI cloud software is already bringing in the returns

Semiconductor Capex Fears Hit Tech: Markets closed mixed today as Middle East tensions and growing fears over unproven returns on massive Big Tech AI capex sparked a hardware selloff. SAP Jumps on AI Cloud Strength: SAP spiked 9.30% after posting a 27% surge in its cloud backlog, proving the early financial success of monetizing new generative AI service tiers. ServiceNow Pops on Guidance Upgrade: ServiceNow rallied 7.44% following a Q2 earnings beat and raised full-year guidance tied to AI demand, sparking a price target upgrade from JPMorgan. Bloom Energy Dives on Project Delays: Bloom Energy plunged 14.91% on reports of significant delays for major projects with Oracle and AEP tied to permitting snags ahead of Tuesday's earnings. Megacap Earnings Test the Rally: Watch META and MSFT earnings next week to see if software revenue growth can justify the massive AI infrastructure capex terrifying semiconductor investors.

Semiconductor Capex Fears Hit Tech

Markets closed mixed today as Middle East tensions and growing fears over unproven returns on massive Big Tech AI capex sparked a hardware selloff.

SAP Jumps on AI Cloud Strength

SAP spiked 9.30% after posting a 27% surge in its cloud backlog, proving the early financial success of monetizing new generative AI service tiers.

ServiceNow Pops on Guidance Upgrade

ServiceNow rallied 7.44% following a Q2 earnings beat and raised full-year guidance tied to AI demand, sparking a price target upgrade from JPMorgan.

Bloom Energy Dives on Project Delays

Bloom Energy plunged 14.91% on reports of significant delays for major projects with Oracle and AEP tied to permitting snags ahead of Tuesday's earnings.

Megacap Earnings Test the Rally

Watch META and MSFT earnings next week to see if software revenue growth can justify the massive AI infrastructure capex terrifying semiconductor investors.

Posture: Cautious accumulation. Hardware capex fears and geopolitical tensions justify a pivot toward proven AI software and defensive quality.

Tickers in focus: SMH, SAP, NOW

Upcoming earnings

  • SCCO — 2026-07-27, TBD
  • BE — 2026-07-28, After Market Close
  • KO — 2026-07-28, Before Market Open
  • HOOD — 2026-07-29, After Market Close
  • META — 2026-07-29, After Market Close
  • MSFT — 2026-07-29, After Market Close

The day's moves on the ledger

No slate changes were logged this day.

← Thursday, July 23, 2026 · Sunday, July 26, 2026 → · Archive