Market Analysis Summary - July 24, 2026

Key Market Movements

The SP500 index experienced a pullback from session highs as traders reacted to recent PMI data, while the NASDAQ declined due to a sell-off in AI-related stocks. Conversely, the Dow Jones saw gains amid a sector rotation towards defensive stocks.

SP500 Performance

The SP500 index moved away from session highs, settling below the resistance level of 7450-7460, and is currently testing the 7400 level. The Manufacturing PMI decreased slightly from 53.9 in June to 53.8 in July, while the Services PMI showed growth from 51.2 to 53.6, exceeding analyst expectations. The Composite PMI also rose, indicating overall economic expansion.

New Home Sales for June increased by 1.6%, falling short of the expected 3.4% growth. Oil prices pulled back by 3.5%, leading to a decline in Treasury yields, with the 2-year Treasuries dropping to 4.33% and the 10-year Treasuries settling at 4.67%. The market anticipates a hawkish Fed policy with potential rate hikes in September.

NASDAQ Index Analysis

The NASDAQ index is testing new lows, primarily driven by a significant drop in AI-related stocks, with Sandisk down 12% and Intel declining by 8% despite beating earnings expectations. The NASDAQ is attempting to settle below the support level of 28,300-28,350, with the next support level at 27,850-27,900.

Dow Jones Performance

The Dow Jones index gained ground, supported by rising demand for consumer and healthcare stocks. Salesforce was the biggest gainer, up 4.4%, as traders shifted focus towards software stocks amid valuation concerns in the tech sector. The nearest resistance level for the Dow Jones is at 52,100-52,200, with potential upward movement towards 52,800 if this level is tested successfully.

Conclusion

Overall, the market is experiencing mixed signals with the SP500 and NASDAQ under pressure from economic data and sector-specific concerns, while the Dow Jones benefits from a rotation into defensive sectors. Traders are advised to monitor key support and resistance levels as well as upcoming economic indicators.