The S&P 500 and the Nasdaq notched record high closes on Thursday as robust results from Google parent Alphabet fueled optimism about other heavyweight artificial intelligence stocks, while Tesla Motors slumped 8% after the electric vehicle maker's results disappointed investors.

Alphabet rose 1% as the search giant's results boosted confidence that heavy investment in a race to dominate AI technology is paying off.

Market Snapshot

The S&P 500 crept up 0.07% to end the session at 6,363.35 points. The Nasdaq gained 0.18% to 21,057.96 points, while the Dow Jones Industrial Average declined 0.70% to 44,693.91 points.

Market Movers

Shares of Microsoft rose 1%, NVIDIA, Advanced Micro Devices and Amazon.com each rose 2%.

UnitedHealth fell 4.8% after the insurer revealed it was cooperating with a Department of Justice probe into its Medicare practices, following reports of both criminal and civil investigations.

IBM dropped almost 8% after its second-quarter results fell flat with investors, hampered by disappointing sales in its core software division.

Honeywell fell 6.2% despite topping Wall Street's expectations and raising its annual outlook.

American Airlines tumbled nearly 10% after the carrier forecast a big third-quarter loss, hurt by sluggish domestic travel demand.

Union Pacific fell 4.5% and Norfolk Southern was down 0.8% after the two railroad companies said they were “engaged in advanced discussions regarding a potential business combination.” Earlier Thursday, Union Pacific posted solid second-quarter earnings that topped analysts’ forecasts.

T-Mobile US rose 5.8% after the telecommunications company reported better-than-expected second-quarter earnings and revenue and raised guidance for postpaid net customer additions. For the year, T-Mobile said it now expects postpaid net customer additions of between 6.1 million and 6.4 million, an increase from prior guidance of 5.5 million to 6 million.

Enterprise-software company ServiceNow reported better than expected second-quarter adjusted earnings and revenue and raised its full-year subscription revenue guidance as demand for its artificial-intelligence-powered enterprise software remained strong. The stock rose 4.2%.

Southwest Airlines was down 11% after posting second-quarter adjusted earnings of 43 cents a share, below analysts’ calls for 51 cents, on revenue of $7.24 billion that also came up short. But the carrier said industry demand “shows signs of improvement off of depressed second quarter 2025 levels, which combined with moderated capacity across the industry and Southwest-specific initiatives, creates a constructive backdrop for the second half of the year.”

Chipotle Mexican Grill, the burrito chain, sank 13% after posting second-quarter profit and revenue that both met analysts’ expectations but same-store sales for existing restaurants that declined 4% from a year earlier. For 2025, Chipotle expects comparable sales flat with 2o24.

Las Vegas Sands earned an adjusted 79 cents a share in the second quarter, beating analysts’ estimates of 53 cents. Revenue of $3.18 billion topped consensus of $2.84 billion. Shares of the casino and resort operator were up 4.3%.

American Eagle Outfitters rose 4.3% after the retailer announced that Hollywood actress Sydney Sweeney would headline its Fall 2025 promotional campaign.

West Pharmaceutical soared 23%. The maker of injectable medicines reported better-than-anticipated second-quarter earnings and raised its full-year guidance.

Market News

STMicro to Buy Part of NXP Semiconductors' Sensor Business for up to $950 Million

French-Italian chipmaker STMicroelectronics NV said on Thursday it would acquire part of NXP Semiconductors NV sensor unit for up to $950 million in cash.

The deal would expand STMicro's portfolio of MEMS-based electromechanical sensors, which include safety and monitoring sensors for vehicles as well as pressure sensors for industrial applications.

Intel to Cut 15% of Workers as Chipmaker Grapples with Manufacturing Challenges

Intel said on Thursday it is laying off 15% of its workforce and new CEO Lip Bu Tan presented a blueprint for a more cost-disciplined, streamlined chipmaker that would issue "no more blank checks."

The plans are part of the effort by Tan, who took the helm in March, to turn around the storied U.S. chipmaker. Intel has divested businesses, laid off employees and redirected resources.