US Stocks End July on Mixed Note as Tech Sector Suffers

The US stock market wrapped up July on a mixed note, with some indices showing resilience while others suffered significant losses. The Nasdaq Composite fell nearly 3% for the month, down from its value at the start of July. In contrast, the Dow Jones and S&P 500 managed to end the month higher after strong buying trends in their final session.

On July 31st, the Dow Jones closed 0.53% higher, while the S&P 500 rose by 0.70%. The Nasdaq Composite also saw a surge of 1% on that day, ending the month at 25,373.85. Amazon led the pack with a 15.3% gain due to strong cloud growth.

However, the tech-heavy Nasdaq 100 index was severely impacted, plummeting by over 5.15% for the month. The volatility in the tech and AI sectors has been attributed to excessive leverage and positioning, as well as concerns about overspending and AI economics.

Going forward, investors will be closely monitoring geopolitical developments in the Middle East, particularly the US-Iran conflict's potential impact on crude oil prices and global risk sentiment. Crude oil will remain a key market variable, with WTI trading at elevated levels near $86-87 per barrel.