Nasdaq Index: Stock Market Drops Despite AI Buzz as Fed and Tariff Pressures Build

Nuclear and AI Power NASDAQ as Traders Eye Fed, Tariffs and Earnings

Friday’s NASDAQ session delivered standout performances from nuclear and AI-linked stocks, with Constellation Energy Corporation leading 54% gains on renewed interest in data center power solutions.

Traders rotated into names tied to infrastructure and AI chips, even as the broader tech sector showed mixed signals from earnings reactions and competitive concerns, with eyes turned toward upcoming Federal Reserve commentary and key earnings.

How Is Constellation Energy Rewriting the Utility Playbook for AI?

Constellation Energy (CEG) surged 54.39% to $321.61, becoming Friday’s top gainer. The company has shifted from traditional utility to AI infrastructure linchpin, capitalizing on soaring data center power needs.

A new 20-year deal with Meta Platforms to supply clean nuclear energy and the proposed $26.6 billion acquisition of Calpine further cement its position as a major U.S. clean energy provider. With the stock up 475% in three years, traders are pricing in a long-term role for nuclear as AI’s power backbone.

Marvell and Intel Reflect Diverging AI Chip Strategies

Marvell Technology (MRVL) rose 3.73% to $74.73, buoyed by 18 socket wins with hyperscalers like Amazon, Meta, and Microsoft. Custom AI chips brought in $650 million last fiscal year, accounting for over a quarter of Marvell’s data center chip sales. The firm now sees the custom AI chip market reaching $55 billion by 2028.

Meanwhile, Intel (INTC) added 2.17% to $23.29, as CEO Lip-Bu Tan’s cost-cutting plan aims to stabilize operations ahead of July 24 earnings. Analysts remain cautious on Intel’s turnaround story.

Tesla and MercadoLibre Benefit from Earnings Buzz and Regional Trends

Tesla (TSLA) gained 2.57% to $327.63 ahead of its July 23 earnings, with Cathie Wood’s ARK buying over 115,000 shares despite concerns around Cybertruck demand and internal political tensions.

MercadoLibre (MELI) climbed 3.07% to $2,423.19, riding digital adoption in Latin America and FX tailwinds from stronger regional currencies. The fintech giant’s payment platform and e-commerce growth continue benefiting from the region’s shift toward digital financial services.

Why Did Netflix and MicroStrategy Drop Despite Key Metrics?

Netflix (NFLX) slipped 4.77% to $1,213.41 despite beating Q2 earnings and raising full-year revenue guidance. The drag came from margin warnings due to rising content costs.

MicroStrategy (MSTR) fell 5.27% to $427.55 as its aggressive Bitcoin exposure raised dilution concerns. CEO Michael Saylor’s proposal to increase share count sparked further skepticism despite Bitcoin holding near $119,000.

What Should Traders Watch Ahead of Fed Policy and Earnings?

With sector rotation favoring AI infrastructure plays, institutional flows suggest rising selectivity. Traders are focusing on companies with robust fundamentals and AI exposure—especially in power generation and semiconductors.

Mixed chip sector performance, including AMD’s 1.63% drop and Broadcom’s 1.06% dip, reflects divergent demand trends. Next week’s Federal Reserve policy update and earnings from Tesla and Intel will likely set the tone for near-term positioning.

More Information in our Economic Calendar.