Stock Indices Waver on Strength in Chipmakers vs Weakness in Software Companies

The S&P 500 Index and the Dow Jones Industrial Average are both down slightly today, while the Nasdaq 100 Index is up. E-mini S&P futures are down, while Nasdaq futures are up. The Dow Jones is at a 2-week low. Strong revenue growth in tech, particularly at Anthropic, is boosting the market, but weakness in software stocks is dragging down the Dow.

Better-than-expected US economic data, including a rise in the Empire manufacturing survey and the NAHB housing market index, is providing support for stocks. However, China's recent economic performance, including lower industrial production, retail sales, and jobless rate, is raising concerns about global growth prospects. Tensions in the Middle East, including Israeli attacks on Iran-backed groups and ongoing hostilities, could also negatively impact markets.

Despite these challenges, strong Q2 earnings growth is viewed positively, with 85% of S&P 500 companies beating estimates so far. The outlook for AI spending and its contribution to earnings growth is seen as a bullish factor for the market.