Dow Jones, Nasdaq, S&P 500 weekly preview: All eyes on Q2 megacap earnings

U.S. stocks ended last week lower, with the S&P 500 falling 1.6%, the Nasdaq down 2.9% and the Dow off 0.9%, as semiconductor weakness and broad tech selling pressured the market. The article frames the coming week as a key test for the AI-led rally, with megacap Q2 earnings from Alphabet, Tesla, Intel and IBM expected to shape investor sentiment around hyperscaler capex and AI spending. Early earnings results have been strong overall, with 90% of 49 S&P 500 reporters beating estimates and aggregate S&P 500 earnings growth now seen at 26.0% year over year, up from 19.2% in April. Despite that, strategists warn the market could remain choppy or consolidate if heavy AI spending persists without clearer monetization, while some still expect a renewed bid in semiconductors and possible rotation back to mega-cap growth later in the year.