2026-07-31 · By SEPT AI
U.S. equities closed with a split personality on Friday, July 31, as the Dow Jones Industrial Average eked out a modest gain while the tech-heavy Nasdaq and small-cap Russell 2000 retreated. The session was marked by a stark divergence between value and growth, with energy stocks powering higher on a strong earnings report from Chevron, while a wave of selling hit speculative names and small caps. The CBOE Volatility Index remained elevated, and the Fear & Greed Index slid to 27, firmly in "Fear" territory, underscoring persistent investor anxiety.
The SPDR S&P 500 ETF (SPY) rose 0.32% to close at $747.03, recovering from an intraday low of $737.79 to touch a high of $748.89. The Dow Jones Industrial Average, tracked by the DIA ETF, inched up 0.07% to $524.44, after swinging between a low of $519.34 and a high of $525.61. In contrast, the Invesco QQQ Trust (QQQ), which tracks the Nasdaq 100, fell 0.60% to $687.99, while the iShares Russell 2000 ETF (IWM) dropped 0.79% to $291.24, reflecting broad weakness in smaller companies.
The energy sector was the standout performer, fueled by a strong earnings beat from Chevron Corp (CVX). The oil major reported earnings per share of $6.06, well above the $5.80 consensus estimate, though revenue was not disclosed. The results provided a tailwind for the sector, lifting the broader market and helping the Dow hold its ground. Chevron’s performance underscored the resilience of cash flows in the energy patch, even as crude prices remain volatile.
On the downside, technology and growth stocks faced headwinds, with the QQQ ETF closing lower. The rotation out of high-multiple names continued, as rising bond yields and lingering inflation concerns weighed on sentiment. Small caps were hit particularly hard, with the IWM falling nearly 1%, as investors shunned riskier assets amid the fear-driven backdrop.
Friday’s session was a rollercoaster for a host of small-cap and micro-cap stocks, with several names moving on heavy volume.
- TCX surged 39.10% to $15.44 on volume of 680,524 shares.
- TGHL rocketed 34.08% to $1.13, with a massive volume of 14.6 million shares.
- SCYX jumped 34.02% to $4.83, while JDZG added 33.56% to $6.01.
- ZTG climbed 32.13% to $4.40, and SNDQ soared 31.52% to $32.21 on 26.6 million shares.
- BEZ rose 27.80% to $12.78, SHPH gained 25.41% to $3.80, and SKDD advanced 25.30% to $14.81.
- MUZ added 24.54% to $13.65, IREZ rose 23.57% to $16.25, and ITGR gained 20.16% to $121.21.
- INHD plunged 53.00% to $18.00, the session’s biggest decliner.
- KUST tumbled 29.55% to $1.24 on 18.7 million shares.
- DFNS dropped 25.19% to $27.68.
- SNDU fell 23.42% to $14.62, SNDG lost 23.18% to $5.80, and RBLU slid 23.11% to $3.16.
- SNXX declined 22.94% to $9.34 on a staggering 128.2 million shares, while SNDC fell 22.91% to $5.08.
No specific catalysts were provided for these moves, but the extreme volatility and heavy volume suggest a mix of short squeezes, earnings reactions, and speculative trading in low-float names.
A busy earnings calendar delivered a mixed bag, with beats in energy and consumer goods but misses in chemicals and real estate.
- AbbVie Inc (ABBV) reported EPS of $3.65, slightly above the $3.64 estimate, with revenue of $16.99 billion. The drugmaker’s results were solid, though the stock’s reaction was muted.
- BrightSpring Health Services (BTSG) beat expectations with EPS of $0.45 versus $0.37, on revenue of $3.87 billion.
- Cboe Global Markets (CBOE) missed estimates, posting EPS of $3.35 versus $3.45, with revenue of $473.9 million.
- Chevron Corp (CVX) delivered a strong beat as noted, with EPS of $6.06 versus $5.80.
- Federal Realty Investment Trust (FRT) missed badly, with EPS of $0.97 versus $1.85, though revenue was not disclosed.
- LyondellBasell Industries (LYB) also missed, with EPS of $1.71 versus $3.56, reflecting weakness in chemicals.
- Newell Brands (NWL) beat with EPS of $0.42 versus $0.19, on revenue of $2.0 billion.
- T. Rowe Price Group (TROW) edged past estimates with EPS of $2.57 versus $2.52.
- Whitestone REIT (WT) beat with EPS of $0.31 versus $0.26, on revenue of $177.2 million.
Notable insider buying activity signaled confidence from corporate insiders. KKR & Co (KKR) received a STRONG_BUY rating with a score of 3, driven by 10 insider purchases totaling $40.1 million. Taiwan Semiconductor Manufacturing (TSM) also earned a STRONG_BUY, with 76 insider buys worth $1.1 million. Erie Indemnity (ERIE) saw 3 insider buys for $1.4 million, while MercadoLibre (MELI) had 4 insider buys totaling $1.3 million.
Other notable buys included Ryan Specialty Holdings (RYAN) with 9 insider purchases worth $5.6 million, and SLR Investment Corp (SLRC) with 8 buys totaling $3.8 million. DLHC saw 17 insider buys for $758,192, while BOC had 6 buys for $1.1 million.
No major economic data was released on Friday, but the Fear & Greed Index at 27 reflected ongoing unease. The index’s “Fear” reading suggests investors are pricing in downside risks, including uncertainty around the Federal Reserve’s next move and lingering inflation concerns. The lack of a clear catalyst kept trading choppy, with the major indices unable to sustain early gains.
No significant crypto market data was provided for the session.
Investors will turn their attention to next week’s economic calendar, which includes the ISM Manufacturing PMI, job openings data, and the monthly employment report. Earnings season continues, with reports from major companies across sectors. The market’s ability to hold recent support levels will be tested, particularly if the Fear & Greed Index remains in “Fear” territory. The insider buying at KKR and TSM may offer a glimmer of confidence, but the broader trend remains cautious.
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