Market Volatility Amid Big Tech Earnings and Economic Indicators

US stocks, including Nasdaq and S&P 500, dropped due to AI trade concerns and disappointing earnings from Alphabet and Tesla. Meanwhile, the Dow Jones remained positive amidst expectations of significant Federal Reserve rate cuts.

Economic growth in Q2 exceeded forecasts at 2.8%, while the upcoming update on the Personal Consumption Expenditure Price Index will influence the Fed's decisions. On the flip side, positive inflation data led to a rebound in the market, with Dow rising by 600-700 points as investors reacted to slower PCE index growth.

The market's recent volatility, especially after lackluster Big Tech earnings, is raising questions about the economy's trajectory. Notably, tech giants like Meta and Microsoft saw gains, but diabetes stock Dexcom slumped.

Key economic indicators are showing promise, with inflation on the rise and consumer spending increasing.