AI Earnings Reset Wipes Out $68 Billion as Oil Climbs and the Dow Snaps Its Win Streak

Market Overview

A Quiet Index-Level Day Hides Brutal Single-Stock Damage

Today's Moves

S&P 500 ▼ 0.18% Dow ▼ 0.85%
Nasdaq ▼ 0.06% Russell ▼ 0.59%

Week-to-Date (Mon–Thu)

S&P 500 ▼ 0.61% Nasdaq ▼ 1.28%
Dow ▼ 0.28% — Monday's rally and Wednesday's record highs have mostly faded.

The Week's Theme

The Dow's five-session, 2,700-point win streak ended Thursday with a 464-point drop, a day after closing at a record 54,349.12. Earnings season is strong on aggregate — over 80% of S&P 500 companies have beaten estimates — but individual misses from AppLovin, Datadog, Honeywell Aerospace, and Western Digital triggered outsized single-stock selloffs.

Market Breadth

Energy was the day's clear winner as oil climbed on renewed Strait of Hormuz tension. Technology and industrials were mixed, with a handful of AI-infrastructure and software names getting crushed on guidance while industrial and defense names like Motorola Solutions and Leidos rallied.

Fed Governor Lisa Cook signaled support for further rate increases and Fed Chair Kevin Warsh said the central bank would consider hiking if inflation accelerates — hawkish commentary that pushed the 10-year Treasury yield to 4.67% just a day ahead of Friday's closely watched July jobs report.

Breaking

An AI Earnings Reset Erases $68 Billion Across Four Names

AppLovin (APP) plunged ▼ 19.7% after quarterly revenue fell short of forecasts, wiping out roughly $27.7 billion in market value in a single session.
Datadog (DDOG) sank ▼ 19.0% after guiding to a slower pace of third-quarter revenue growth, even as underlying AI-driven cloud demand held up.
Honeywell Aerospace (HONA) was the session's single biggest S&P 500 loser, tumbling ▼ 23.2% on disappointing guidance.
Western Digital (WDC) and SanDisk (SNDK) fell ▼ 13.0% and ▼ 6.8% respectively as AI-storage guidance underwhelmed, despite otherwise robust earnings-season results across the broader S&P 500.

Sector Focus

Energy Leads as Oil Jumps on Fresh Strait of Hormuz Tension

WTI crude rose roughly 3% to settle above $77 a barrel, while Brent crude pushed toward $82–83, after fresh maritime attacks in the Red Sea and Gulf of Aden reignited shipping-lane concerns.
Iran floated a provisional shipping arrangement with Oman covering the Strait of Hormuz — a modest de-escalation signal that only partly offset the day's tension.
Energy was Thursday's best-performing sector, with APA Corp up ▲ 5.4% and Occidental Petroleum (OXY) up ▲ 4.1% as crude prices climbed.
The 10-year Treasury yield firmed to 4.67% and the 30-year reached 5.21%, adding pressure on rate-sensitive growth names.

Today's Winners

Industrials and Defense Names Rallied Through the Noise

Motorola Solutions (MSI) led S&P 500 gainers, up ▲ 8.2%, followed by Parker Hannifin (PH) ▲ 7.3% and Leidos (LDOS) ▲ 6.6%.
Fox Corp (FOX) added ▲ 6.1% and PTC rose ▲ 5.9%, rounding out the day's biggest index gainers.
Energy names APA Corp ▲ 5.4% and Occidental Petroleum ▲ 4.1% rode Thursday's oil rally.
The VIX fell to roughly 15.15 (▼ 4.2%), a sign Thursday's pullback was orderly profit-taking rather than panic selling.

Macro & Index Change

The Dow's Record-Setting Streak Comes to an End

The Dow Jones Industrial Average fell ▼ 0.85% (-464.02 points) to 53,885.10, snapping a five-session win streak that added more than 2,700 points and carried it to Wednesday's record 54,349.12 close.
The S&P 500 eased ▼ 0.18% to 7,709.96, just three sessions removed from first closing above 7,700 on Monday.
The Nasdaq Composite slipped ▼ 0.06% to 26,348.35 as software-earnings damage offset strength elsewhere in tech.
Hawkish remarks from Fed Governor Lisa Cook and Fed Chair Kevin Warsh on the possibility of further rate hikes lifted yields and added to the day's cautious tone ahead of Friday's jobs report.

Looking Ahead

What to Watch Friday, August 7

July nonfarm payrolls land Friday morning, with economists expecting roughly 85,000–100,000 jobs added and unemployment near 4.2%, following a weak 57,000 June print — a make-or-break number for Fed rate-hike odds.
Airbnb, Lyft, and Cloudflare report earnings after Thursday's close, adding fresh reads on travel and cloud demand ahead of Friday's open.
SpaceX's first post-IPO lockup expiration unlocks more than 900 million shares this week — watch for continued volatility after the stock gave back early Thursday gains.
The Strait of Hormuz remains the key swing factor for oil: Iran's provisional Oman shipping arrangement offers a possible de-escalation path, but fresh Red Sea and Gulf of Aden attacks keep traders on edge.
Watch for follow-through in AppLovin, Datadog, Honeywell Aerospace, and Western Digital after Thursday's earnings-driven rout.