US Stock Market Ends July Mixed: Nasdaq 100 Crashes 1,535 Pts, Nasdaq Composite Down 3%; Key Factors To Watch

The US stock market ended the month of July 2026 on a mixed trend, with Nasdaq 100 and Nasdaq Composite indices becoming the worst performers. The Nasdaq 100 crashed by over 1,500 points in July alone, while the Nasdaq Composite recovered some losses on July 31st but could not escape the bearish tone and ended nearly 3% lower in the month. On the contrary, Dow Jones and S&P 500 who were poised for a monthly loss, managed to end higher after strong buying trend in last session. Going ahead, investors will continue to observe development in geopolitical uncertainty at the Middle East and movement of crude oil and yielding assets like dollars and bonds.

US Stock Market This Week

Let's begin with the day that saved both Dow Jones and S&P 500 from recording July on a bearish note. Till July 30th, DJIA was poised for 0.21% decline and S&P 500 was set for nearly 1% drop on month-on-month basis.

But the strong bull run on July 31st was enough to pull these two indices out of the red zone. On Friday, the DJIA closed at 276.97 points or 0.53% higher to 52,485.03, while the S&P 500 index rose by 52.09 points or 0.70% to end at 7,489.72.

Strong rally was also seen in Nasdaq Composite on Friday, which surged by 251.68 points or 1% to end the month at 25,373.85.

In terms of stock-specific actions, as per Trading Economics, amazon jumped 15.3% on strong cloud growth. Optimism around the AI trade boosted software and hyperscalers, with Alphabet gaining 6.9%, Microsoft adding 3%, and Meta rising 3.3%. Those gains outweighed a decline in Apple (-7.3%), after chip shortages raised costs and reduced June-quarter production, weighing on earnings. Elsewhere, broader sectors were weaker, with Netflix down 2% and Eli Lilly losing 0.6%. ExxonMobil fell 1% as limited refinery capacity prevented the oil major from fully benefiting from higher oil prices last quarter.

Overall, during the trading week from July 27th to July 31st, Dow outperformed with 0.6% gains, while S&P 500 and Nasdaq Composite surged by 0.34% and 0.55%.

The Wall Street was broadly seen to be hit with volatility this week despite US Federal Reserve's keeping key interest rates unchanged.

"While the Federal Reserve left rates unchanged, markets appeared to be frustrated with the lack of clarity in rate policy and yields spiked on the long end of the Treasury curve," said Charles Schwab's report.

Volatility was also seen in overseas market with the Korea's KOSPI recording back-to-back 10% decline in the early days of the current week before recording a single-day blockbuster jump of 17.91% on Friday.

US Stock Market's July 2026 Performance

Following the latest bull run, Dow Jones managed to end the month higher by 179.79 points or 0.34% to 52,485.03. The S&P 500, although in green, recorded marginal gains of 6.49 points or 0.09%.

But there was no escape for both Nasdaq Composite and Nasdaq 100. In fact, Nasdaq 100 was brutally beaten.

From July 1st to July 31st, the tech-heavy index, Nasdaq Composite recorded monthly decline of 666.18 points or 2.6%. However, the Nasdaq 100 index crashed a whopping 1,534.94 points or 5.15% to end the month at 28,274.20.

"The volatility in the tech/AI (artificial intelligence) complex has been experienced over the past month in large part due to excessive leverage and positioning, coupled with concerns around overspending and AI economics, "said Nathan Peterson, Director of Derivatives Research and Strategy at Charles Schwab in a note.

According to Peterson, tracking the Q2 earnings scorecard, the results continue to be very strong, even though the post-earnings reactions have been relatively sour. So far, 305 of the S&P 500 companies have reported results and 68% have beat estimates on the top line while 86% have beat on the bottom line. Perhaps more impressively (although we are only halfway through the season), earnings per share (EPS) growth is currently tracking at 57.00% and revenue growth is at 14.81%.

Going ahead, Ponmudi R, CEO - Enrich Money, said, investor attention in the coming week will remain firmly focused on geopolitical developments in the Middle East, with any further escalation in the U.S.-Iran conflict likely to have an immediate impact on crude oil prices and broader global risk sentiment. Crude oil will remain the key market variable, with WTI continuing to trade at elevated levels near the $86-87 per barrel range.

Although prices have retreated from their recent peaks, they remain high enough to keep inflation concerns firmly in focus. Any renewed disruption to energy supplies or shipping routes could reignite the rally in oil, adding to volatility across global financial markets and posing renewed challenges for major oil-importing economies such as India.

Beyond geopolitics, Ponmudi believes, investors will closely monitor the direction of U.S. Treasury yields, incoming U.S. economic data and commentary from Federal Reserve officials for fresh signals on the outlook for monetary policy. Particular attention will be on labour market indicators, business activity surveys and other inflation-sensitive data that could reshape expectations for the Fed's September meeting following this week's decision to leave interest rates unchanged. With bond markets continuing to question the inflation outlook amid elevated energy prices, any upside surprise in economic data or hawkish policy signals could lift Treasury yields and the U.S. dollar further, weighing on emerging-market assets and global equity valuations. Conversely, softer economic data could ease pressure on yields, improve risk appetite and provide additional support to equities and other risk-sensitive assets.

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