The US stock market opened higher, primarily driven by performances from Microsoft and Meta following their positive earnings reports. Meta’s shares soared by almost 11%, while Microsoft’s shares rose by 6.70%. Additionally, Nvidia’s shares increased by 1.81%. <\/p>\n
The NASDAQ index recorded a boost of 1.28%, marking it as the leader among the major indices. The S&P index advanced by 0.75%, whereas the Dow industrial average had a modest rise of 0.20%. On the other hand, the Russell 2000 fell by 0.54%.<\/p>\n
The S&P and NASDAQ indices both achieved new all-time intraday highs. Apple’s shares have decreased by 16.63% in 2025, while Amazon’s shares have grown by 5.90%. Other prominent stocks include Alphabet, which increased by 2.40%, and Nvidia, with a growth of 35.29%.<\/p>\n
Tesla’s shares have dropped by 20.62% in 2025, showing differing performances among key stocks. Apple and Amazon are set to release their earnings after the market closes, possibly impacting stock movements further.<\/p>\n
The market is clearly split between a few mega-cap tech winners and the rest of the field. We are seeing the Nasdaq and S&P hit new highs while the Russell 2000, representing smaller companies, is falling. This divergence suggests traders should be cautious about broad market bets.<\/p>\n
The weakness in smaller companies likely reflects recent economic data. The latest CPI report from mid-July 2025 showed inflation holding at a stubborn 3.1%, and the Federal Reserve has signaled it will keep interest rates higher for longer. This environment hurts smaller, debt-reliant firms more than cash-rich giants like Microsoft.<\/p>\n
For the winning stocks like Microsoft and Meta, the big earnings move has already happened. Traders could consider selling out-of-the-money put options to collect premium, betting that these stocks will not fall sharply in the coming weeks. This strategy benefits from the post-earnings drop in implied volatility.<\/p>\n
All eyes are now on Apple\u2019s earnings report after today’s close. With the stock down over 16% this year, expectations are low, creating a setup for a volatile move. Buying a straddle, which involves purchasing both a call and a put option, could be a way to profit from a large price swing in either direction.<\/p>\n
We’ve seen this play out before, like in May 2024 when Apple surprised investors with a huge buyback program that sent the stock soaring. Given the poor sentiment in 2025, any positive news on their AI strategy or a similar surprise could cause a sharp rally. A disappointing report would simply confirm the current negative trend.<\/p>\n
The weakness in other former leaders like Tesla, down over 20% this year, highlights the ongoing rotation. For traders already holding these struggling stocks, selling covered calls could generate income while they wait for a potential recovery. This strategy caps the upside but provides some cushion if the stock continues to drift lower.<\/p>\n
With the major indices at all-time highs but clear underlying weakness, portfolio hedging is prudent. The CBOE Volatility Index (VIX) is currently trading near 13.5, a low for 2025. Buying VIX call options or options on volatility-tracking ETFs could be a relatively cheap insurance policy against a market pullback in August or September.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Microsoft and Meta earnings boost market; NASDAQ leads gains as S&P hits new intraday high. Tesla drops.<\/p>\n","protected":false},"author":62,"featured_media":16986,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-27811","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/27811","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=27811"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/27811\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16986"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=27811"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=27811"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=27811"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}