Alphabet and AI stocks nudge Wall Street to more records

NEW YORK (AP) — Wall Street inched to more records on Thursday as gains for Alphabet and artificial-intelligence stocks helped make up for Tesla ’s steep tumble.

The S&P 500 added 0.1% to its all-time high set the day before. The Dow Jones Industrial Average fell 316 points, or 0.7%, while the Nasdaq composite rose 0.2% to its own record.

Alphabet climbed 1% after the company behind Google and YouTube delivered a fatter profit for the latest quarter than analysts expected. It’s leaning more into artificial-intelligence technology and said it’s increasing its budget to spend on AI chips and other investments this year by $10 billion to $85 billion.

That helped push up other stocks in the AI industry, including a 1.7% rise for Nvidia. The chip company was the strongest single force lifting the S&P 500 because it’s the largest on Wall Street in terms of value.

But an 8.2% drop for Tesla kept the market in check. Elon Musk’s electric-vehicle company reported results for the spring that were roughly in line with or above analysts’ expectations, and Musk is trying to highlight Tesla’s moves into AI and robotaxis.

The focus, though, remains on how Musk’s foray into politics is turning off potential customers, and he said several rough quarters may be ahead as “we’re in this weird transition period where we’ll lose a lot of incentives in the U.S.”

Stocks have broadly been rallying for weeks on hopes that President Donald Trump will reach trade deals with other countries that will lower his stiff proposed tariffs, along with the risk that they could cause a recession and drive up inflation. The record-setting gains have been so strong that criticism is rising about how expensive stock prices have become. That in turn puts pressure on companies to deliver solid growth in profits in order to justify their gains.

Chipotle Mexican Grill also helped weigh on the market despite delivering a profit for the spring that topped analysts’ expectations. The restaurant chain’s growth in revenue came up short of expectations, and its stock fell 13.3%.

IBM dropped 7.6% even though it likewise reported a stronger profit than expected. Analysts pointed to slowing growth in its software business, among other things underneath the surface.

American Airlines lost 9.6% despite reporting a stronger profit than expected. The company said it expects to report a loss for the summer quarter. It also gave a forecast for full-year results that had a wide range: between a loss of 20 cents per share and a profit of 80 cents per share, depending on how the economy performs.

Reactions in the stock market have generally been stronger than usual when companies beat or miss their profit targets by a wide margin, according to Julian Emanuel at Evercore.

Other extreme moves have also been roaring underneath the market’s surface, including huge swings for “meme stocks.” Those are stocks where traders are looking to jump in amid online cheerleading and ride it higher, before a halt in momentum leaves some investors holding the bag.

Opendoor Technologies rose 5.7% following a manic stretch where it swung by at least 10%, up or down, in 10 straight days.

Such swings, though, haven’t been showing up in overall market indexes, which have been gliding recently. The S&P 500 hasn’t had a day where it moved by at least 1% in a month.

All told, the S&P 500 rose 4.44 points to 6,363.35. The Dow Jones Industrial Average fell 316.38 to 44,693.91, and the Nasdaq composite rose 37.94 to 21,057.96.

In the bond market, Treasury yields held relatively steady following the latest signals that the U.S. economy seems to be holding up OK despite pressures from tariffs and elsewhere.

One report said that fewer U.S. workers applied for unemployment benefits last week, a potential signal of easing layoffs. A separate report from S&P Global suggested growth in U.S. business activity accelerated in July, and the preliminary results easily topped economists’ expectations.

That helped solidify expectations on Wall Street that the Federal Reserve will hold interest rates steady at its next meeting next week, even though Trump has been agitating angrily for cuts. The European Central Bank, which had earlier been cutting its rates, also held steady on Thursday as it waits to see how Trump’s tariffs affect the economy.

The yield on the 10-year U.S. Treasury note briefly approached 4.44% in the morning before pulling back to 4.40%, where it was late Wednesday.

In stock markets abroad, indexes rose across much of Asia and Europe. Tokyo’s jump of 1.6% and London’s rise of 0.8% were two of the bigger gains.

AP Writer Teresa Cerojano contributed.

Trader John Gorman works on the floor of the New York Stock Exchange, Monday, July 21, 2025. (AP Photo/Richard Drew)

Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI), left, at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Thursday, July 24, 2025. (AP Photo/Ahn Young-joon)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won, top right, at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Thursday, July 24, 2025. (AP Photo/Ahn Young-joon)

A currency trader watches monitors near a screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Thursday, July 24, 2025. (AP Photo/Ahn Young-joon)

CHERNIHIV, Ukraine (AP) — Young athletes in northern Ukraine spend their days cross-country skiing through a scorched forest, focused on their form — until a siren inevitably shatters the silence.

They respond swiftly but without panic, ditching their skis and following coaches to an underground bomb shelter.

It’s an ordinary training session at the complex that produced Ukraine’s first Olympic medalist.

Sleeping children no longer dream of Olympic glory in the facility's bombed-out dormitories, and unexploded ordnance has rendered nearby land off limits. But about 350 kids and teens — some of the nation's best young cross-country skiers and biathletes — still practice in fenced-off areas amid the sporadic buzz of drones passing overhead then explosions as they're shot down.

“We have adapted so well — even the children — that sometimes we don’t even react,” Mykola Vorchak, a 67-year-old coach, told The Associated Press in an interview on Oct. 31. “Although it goes against safety rules, the children have been hardened by the war. Adapting to this has changed them psychologically.”

War has taken a heavy toll on Ukrainian sport. Athletes were displaced or called up to fight. Soccer matches are often interrupted by air raid sirens so attendance is capped by bomb shelter capacity. Elite skaters, skiers and biathletes usually train abroad, with attacks and frequent blackouts shuttering local facilities.

But the government-run Sports Ski Base of the Olympic Reserve is open for cross-country skiing and biathlon, the event which combines skiing with shooting. The sprawling complex is on the outskirts of Chernihiv, a city two hours north of Kyiv along the path of destruction Russia's army left in its 2022 attempt to capture the capital. Chernihiv remains a regular target for air attacks aimed at the power grid and civilian infrastructure.

Several temporary structures at the sports center serve as changing rooms, toilets and coaches’ offices. Athletes train on snowy trails during the winter and, throughout the rest of the year, use roller skis on an asphalt track pocked by blast marks.

Biathletes aim laser rifles at electronic targets and, between shooting drills, sling skis over their shoulders and jog back to the start of the course, cheeks flushed from the cold.

Valentyna Tserbe-Nesina spent her adolescence at the Chernihiv center performing these same drills, and won bronze at the 1994 Winter Games in Lillehammer. It was Ukraine’s first Olympic medal as an independent country.

“The conditions weren’t great, but we had nothing better. And for us, it was like a family — our own little home,” she said inside her apartment, its shelves and walls lined with medals, trophies and souvenirs from competitions around the world.

Tserbe-Nesina, 56, was shocked when she visited the complex in 2022. Shelling had torn through buildings, fire had consumed others. Shattered glass littered the floors of rooms where she and friends once excitedly checked taped-up results sheets.

“I went inside, up to my old room on the second floor. It was gone — no windows, nothing,” she said. “I recorded a video and found the trophies we had left at the base. They were completely burned.”

Tserbe-Nesina has been volunteering to organize funerals for fallen Ukrainian soldiers in her hometown while her husband, a retired military officer, returned to the front. They see each other about once a year, whenever his unit allows him brief leave.

One adult who in 2022 completed a tour in a territorial defense unit of Ukraine’s army sometimes trains today alongside the center's youngsters. Khrystyna Dmytrenko, 26, will represent her country at the Milan Cortina Winter Olympics that start Feb. 6.

“Sports can show that Ukraine is strong,” Dmytrenko said in an interview next to the shooting range. “We represent Ukraine on the international stage, letting other countries, athletes and nations see our unity, strength and determination.”

The International Olympic Committee imposed bans and restrictions on Russian athletes after the invasion of Ukraine, effectively extending earlier sanctions tied to state‑sponsored doping. But a small group of them will participate in the upcoming Winter Games.

After vetting to ensure no military affiliation, they must compete without displaying any national symbols — and only in non-team events. That means Russian and Ukrainian athletes could face one another in some skating and skiing events. Moscow’s appeal at the federation level to allow its biathletes to compete is pending.

That's why many Ukrainians view training for these events as an act of defiance. Former Olympic biathlete Nina Lemesh, 52, noted that some young Ukrainians who first picked up rifles and skis at the Chernihiv ski base during wartime have become international champions in their age groups.

“Fortunately, Ukrainians remain here. They always will,” she said, standing beside the destroyed dormitories. “This is the next generation of Olympians.”

AP writer Derek Gatopoulos in Kyiv contributed to this report.

A young biathlete trains outside the destroyed ski base in Chernihiv, Ukraine, Thursday, Oct. 30, 2025. (AP Photo/Julia Demaree Nikhinson)

Biathlete Khrystyna Dmytrenko poses for photos outside the destroyed ski base in Chernihiv, Ukraine, Thursday, Oct. 30, 2025. (AP Photo/Julia Demaree Nikhinson)

A young biathlete trains outside the destroyed ski base in Chernihiv, Ukraine, Thursday, Oct. 30, 2025. (AP Photo/Julia Demaree Nikhinson)

Biathletes Mykola Dorofeiev, 16, and Nazar Kravchenko, 12, left, train at the ski base in Chernihiv, Ukraine, Thursday, Oct. 30, 2025. (AP Photo/Julia Demaree Nikhinson)

Biathlete Khrystyna Dmytrenko poses for photos inside the destroyed ski base in Chernihiv, Ukraine, Thursday, Oct. 30, 2025. (AP Photo/Julia Demaree Nikhinson)

A young biathlete trains outside the destroyed ski base in Chernihiv, Ukraine, Thursday, Oct. 30, 2025. (AP Photo/Julia Demaree Nikhinson)