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Tech rout deepens; energy rallies as AI capex concerns mount

· StockRadar Editorial

United States

The S&P 500 (^GSPC) closed the week at $7,411.98, down 0.42%, with the index trading between $7,376.00 and $7,525.94. The Nasdaq (^IXIC) declined 2.09% to $24,975.82, while the Dow Jones (^DJI) edged higher by 0.21% to $51,947.25. The Russell 2000 (^RUT) fell 0.42% to $2,930.00. Technology and mega-cap equities bore the brunt of selling pressure, while energy stocks advanced.

Tesla (TSLA) suffered its steepest weekly fall since 2022, dropping 15.30% to $313.03. The deterioration followed chief executive Elon Musk facing operational headwinds and a planned SpaceX Starship test flight. Alphabet (GOOGL) declined 9.16% to $319.74 after announcing increased capital expenditure commitments for artificial intelligence infrastructure. Meta (META) fell 7.84% to $595.19, and Amazon (AMZN) retreated 7.15% to $232.11. The trio of mega-cap losses reflected broader anxiety in fixed-income markets over the escalating capex demands of hyperscaler buildouts for AI systems.

Energy equities bucked the trend. ExxonMobil (XOM) rose 5.78% to $156.94. Nvidia (NVDA), Microsoft (MSFT), and Meta issued a joint statement cautioning against "premature restrictions" on open-weight AI models, signalling industry resistance to potential regulatory curbs. On the political front, former President Donald Trump threatened the European Union with "substantial tariff" actions, accusing it of "robbing" U.S. technology companies, and defended Department of Justice subpoenas issued to New York Times reporters, with Google also identified as a subpoena target. Activist Michael Burry's short positions in Tesla and Caterpillar yielded significant gains during July's market pullback.

Italy

The FTSE MIB (FTSEMIB.MI) closed at €51,316.00, down 1.05% for the week, trading within a range of €51,244.00 to €52,888.00. STMicroelectronics (STMMI.MI) fell 12.66% to €47.94, tracking the broader semiconductor weakness seen in U.S. markets. Moncler (MONC.MI) declined 9.43% to €47.35.

Defensive and energy positions outperformed. Eni (ENI.MI) advanced 6.12% to €22.97, and Leonardo (LDO.MI) gained 3.96% to €51.88, mirroring the strength in European energy and defence sectors.

Week ahead

Earnings season continues with focus on technology and financial sectors; key macroeconomic data releases and Federal Reserve communications remain central to equity direction.

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