The earnings reports released last week showed that over 80% of companies exceeded market expectations in terms of profitability, and more than half of the companies exceeded market expectations in terms of revenue. However, despite the optimistic earnings data, the major indices still fell significantly.

The Philadelphia Semiconductor Index (^SOX) dropped nearly 10% last week. The tech-heavy Nasdaq Index (^IXIC) fell over 3% last week and has cumulatively dropped more than 10% from its all-time high. The S&P 500 Index (^INX) also declined by over 2% last week.

• AMD (AMD): AMD’s stock fell by over 5% last week. Despite reporting better-than-expected second-quarter earnings and guidance, its stock surged by more than 10% on Wednesday (July 31), but subsequently, pessimistic market sentiment led to a drop exceeding the gains on Wednesday.
• Microsoft (MSFT): Microsoft’s stock dropped nearly 3% last week. Although its fourth-quarter revenue and earnings exceeded expectations, Azure's cloud business growth was below expectations, and capital expenditures hit a new high.
• Qualcomm (QCOM): Qualcomm’s stock dropped nearly 12% last week. Despite its third-quarter earnings and guidance exceeding market expectations, the company's cautious comments on the second-half smartphone market raised investor concerns about future growth.
• Intel (INTC): Intel’s stock plummeted by more than 31% last week. Its second-quarter revenue and earnings missed market expectations, and the company announced a 15% layoff and suspension of dividends.
• Apple (AAPL): Apple’s stock rose nearly 1% last week. Its third-quarter revenue and earnings exceeded market expectations, and its guidance for the next quarter received Wall Street praise.
• Amazon (AMZN): Amazon’s stock fell 8% last week. Its second-quarter revenue and earnings fell short of expectations, but its AWS cloud business revenue grew 19% to $26.3 billion, exceeding Wall Street's forecast of $26 billion.
• Meta (META): Meta’s stock rose nearly 5% last week. Its second-quarter revenue, earnings, and third-quarter guidance all exceeded market expectations, and its gross margin was significantly higher than peers. Additionally, Meta launched AI Studio last week, and the market remains optimistic about its development.

This week, about 50 S&P 500 component companies will release earnings reports, including Uber (UBER), Airbnb (ABNB), Disney (DIS), Eli Lilly (LLY), and Datadog (DDOG).