US stocks end July on a soft note

The S&P 500 opened 1% higher after last night’s blockbuster earnings from Microsoft and Meta lit a fire under the entire AI complex. Unfortunately, the day only got worse from there.

US stocks slid throughout the session, ending near their lows. The S&P 500 gave back 0.4%, the Nasdaq 100 fell 0.5%, and the Russell 2000 underperformed with a 0.9% decline.

This ends July as the S&P 500’s first month without a daily gain or loss of at least 1% since two years ago, in July 2023.

Healthcare was far and away the worst-performing S&P 500 sector ETF, with drugmakers including Eli Lilly, Pfizer, and Novo Nordisk falling after President Trump sent a letter to 17 pharma CEOs demanding they cut US drug prices within 60 days.

On the positive side, eBay soared 18%, touching an all-time high a day after the online marketplace posted strong Q2 results and analysts issued a pair of price target hikes. Declines were led by Align Technology, which sank a massive 36% after the Invisalign maker missed both top- and bottom-line Q2 estimates.

Elsewhere…

Meta shares jumped another 11% after the social media and AI behemoth topped Q2 estimates Wednesday. Ad revenue — which makes up the majority of its total — leapt 21%.

Microsoft shares rose another 4% after the company’s blowout fiscal Q4 earnings, pushing its valuation above $4 trillion for the first time.

Norwegian Cruise Line sailed up 9% after the cruise operator reaffirmed full-year guidance despite so-so Q2 results, citing a rebound in bookings.

Roblox jumped 10% after the gaming platform beat estimates, with total bookings climbing to $1.4 billion.

CVS Health climbed as much as 6% before closing flat after the pharmacy retailer topped Q2 estimates and raised its full-year outlook.

SoFi Technologies bounced up 3%, marking its third straight day of big moves after Deutsche Bank and Mizuho hiked their price targets on the stock.

Comcast shares closed up 2.2% after the media and cable giant delivered a strong Q2 earnings beat, fueled in part by the debut of its Epic Universe park and hit Peacock shows.

AB InBev fell 13% as the world’s largest brewer continued to report declining sales volume with each passing quarter.

Cigna shares dropped 10%, despite the healthcare insurer beating Q2 estimates and showing solid cost control during the quarter.