--- title: "Midday Markets: Tesla Extends Slide as Tech Diverges; Optical Communications Sector Tumbles" type: "News" locale: "en" url: "https://longbridge.com/en/news/293770036.md" description: "Tesla continues post-earnings decline weighing on Nasdaq; optical comm stocks drop over 8%; Samsung and SK Hynix set to sign massive chip supply deals, lifting NVIDIA and Broadcom." datetime: "2026-07-24T14:27:21.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293770036.md) - [en](https://longbridge.com/en/news/293770036.md) - [zh-HK](https://longbridge.com/zh-HK/news/293770036.md) --- # Midday Markets: Tesla Extends Slide as Tech Diverges; Optical Communications Sector Tumbles U.S. stocks edged higher Thursday as markets opened, with the three major indices posting modest gains. As of the latest update, the S&P 500 ticked up roughly **0.1%**, while the Nasdaq was nearly flat, weighed down by Tesla and Google. The Dow showed comparatively steady performance. Investors are digesting tech giant earnings while assessing new U.S. tariffs and the latest developments in the Middle East. Sector action revealed a sharp divergence within technology stocks. Tesla extended its weakness following the prior session's rout, while Google moved lower in tandem. The optical communications sector suffered broad-based selling, with Applied Optoelectronics plunging over **8%** to lead decliners. On the flip side, AI chip names including **NVIDIA (NVDA)** and **Broadcom (AVGO)** bucked the trend, buoyed by reports that Samsung Electronics and SK Hynix are set to sign massive chip supply agreements with top U.S. tech firms. **Apple (AAPL)** held steady at elevated levels in high-range consolidation ahead of its earnings report. **Tesla Extends Slide as Wall Street Cuts Price Targets** **Tesla (TSLA)** reported second-quarter earnings after Wednesday's close that missed expectations, with adjusted EPS falling short, free cash flow turning negative, and capital expenditures doubling due to AI-related investments. JPMorgan and UBS cut their price targets on Tesla, questioning the timeline for returns on massive spending in robotaxi and robotics initiatives. Tesla plummeted over **14%** in the prior session, wiping out more than **$214.5 billion** in market value — the largest single-day market cap loss in the company's history. Multiple Tesla 2x leveraged ETFs tumbled roughly **30%**. **Optical Communications Sector Broadly Tumbles; Applied Optoelectronics Down Over 8%** As of the latest update, **Applied Optoelectronics (AAOI)** dropped over **8%**, **Credo Technology (CRDO)** fell over **7%**, **Coherent (COHR)** and **Lumentum (LITE)** declined more than **6%**, **Marvell Technology (MRVL)** and **POET Technologies (POET)** each lost over **5%**, **Nokia (NOK)** slid more than **4%**, and **Corning (GLW)** shed over **3%**. **Samsung, SK Hynix Poised to Sign Massive Chip Deals; NVIDIA and Broadcom in Focus** South Korean President Lee Jae-myung kicked off a Silicon Valley visit, with senior presidential officials indicating that Samsung Electronics and SK Hynix are expected to sign cooperation agreements involving substantial capital commitments with leading U.S. tech companies. The deals would encompass long-term memory chip supply, strategic investments, and AI infrastructure buildout. The move is poised to further lock in key orders for AI servers, HBM and other critical chips, with **NVIDIA (NVDA)** and **Broadcom (AVGO)** seen by the market as primary beneficiaries. **Alphabet Breaches Key Support; Apple Holds at Elevated Levels Ahead of Earnings** Google parent **Alphabet (GOOGL)** fell roughly **7%** post-earnings, breaching the **$340** key support level, as heavy AI capex spending and negative free cash flow prompted investor caution. Technical analysts flagged **$300** as the next critical psychological level. **Apple (AAPL)**, in contrast, maintained a bullish technical posture with shares trading above major moving averages, as the market turns its attention to the fiscal third-quarter earnings report due July 30. Analysts expect EPS of **$1.89** on revenue of **$108.86 billion**. On the macro front, the U.S. imposed new tariffs on 60 economies and targeted Canadian goods with additional levies, while Trump threatened military action against Iran. Treasury yields and oil prices declined. Bank of America strategist Michael Hartnett suggested the Fed may need to raise rates to stabilize the bond market. Markets are pricing in a **71%** probability that the Fed holds rates steady at next week's meeting. ### Related Stocks - [TSLA.US](https://longbridge.com/en/quote/TSLA.US.md) - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) - [AAOI.US](https://longbridge.com/en/quote/AAOI.US.md) - [CRDO.US](https://longbridge.com/en/quote/CRDO.US.md) - [COHR.US](https://longbridge.com/en/quote/COHR.US.md) - [LITE.US](https://longbridge.com/en/quote/LITE.US.md) - [MRVL.US](https://longbridge.com/en/quote/MRVL.US.md) - [POET.US](https://longbridge.com/en/quote/POET.US.md) - [NOK.US](https://longbridge.com/en/quote/NOK.US.md) - [GLW.US](https://longbridge.com/en/quote/GLW.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [AVGO.US](https://longbridge.com/en/quote/AVGO.US.md) - [AAPL.US](https://longbridge.com/en/quote/AAPL.US.md) ## Related News & Research - [Elon Musk Just Revealed a Quiet Win for Tesla’s AI Ambitions](https://longbridge.com/en/news/293848955.md) - [AAPL Stock Alert: What to Know as Apple Partners With Klarna to Lease iPhones](https://longbridge.com/en/news/294104418.md) - [Tesla Debuts Its Robotaxis in Orlando and Tampa. 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