S&P 500, NASDAQ Fall on Friday, But Notch Second Weekly Gain

The stock market was down on Friday after a rise in July retail sales and a higher-than-expected wholesale inflation.

The July’s Producer Price Index (PPI) rose 0.9% from the previous month, beyond the 0.2% forecast. Meanwhile, US Census Bureau revealed that July retail sales increased 0.5% from the prior month after a sharp retreat in consumer spending in Spring.

Overall, S&P 500 fell 0.3% to 6,450, while NASDAQ declined 0.4% to 21,623.

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Here is the one-year chart of Alphabet (GOOGL) as of July 25, 2025, when the stock was at $193.

Alphabet impressed investors with its latest earnings report as the company is doing more than just fighting off AI – it is embracing it.

Investors have been concerned that AI bots would remove the need for people to “Google” things. Instead, Google has developed its own AI tools like AI Overviews that gives a brief AI answer at the top of search results. More in-depth explanations are found using AI mode, which si more of a conversational chat bot with longer answers.

Google Search made up 56% of Alphabet’s total revenue last quarter and grew revenue 12% compared to last year. In addition, Cloud is doing great, with revenue up a sparkling 32% last quarter. It had as many $1 million deals in the first half of 2025 as it did in all of 2024. AI and Cloud are doing so good that management increased CapEx for the next two years. YouTube also had a good quarter with 13% revenue growth.

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