Tech Earnings and Novo Nordisk's Profit Warning Impact Markets

On July 29, 2025, the stock market experienced notable fluctuations driven by significant corporate earnings reports and a major profit warning from Novo Nordisk.

Tech Giants’ Earnings Reports Shape Market Sentiment

Major technology companies, including Microsoft, Meta, Apple, and Amazon, released their earnings reports, collectively representing over $11 trillion in market value. These reports played a pivotal role in influencing market direction, with investors closely analyzing the performance and future outlooks of these tech behemoths. The tech sector’s performance underscored its dominant influence on market trends, often overshadowing other economic indicators and policy decisions. Analysts noted that investors showed little concern over upcoming economic data or tariff changes, highlighting the dominant influence of Big Tech earnings on market direction. Source

Novo Nordisk’s Profit Warning Triggers Market Reaction

In a significant development, Novo Nordisk, the manufacturer of the popular weight-loss drug Wegovy, issued a profit warning and announced a new CEO, Maziar Mike Doustdar. The company revised its 2025 sales growth forecast down to 8%-14% from 13%-21%, leading to a steep decline in its stock—down as much as 30% before partially recovering. This sharp downgrade reflects weakening expectations, particularly in the second half of 2025 for Wegovy and diabetes drug Ozempic in the U.S. market. The company’s challenges are compounded by the rise of compounded, copycat versions of its drugs despite regulatory action. Additionally, Novo has lost its market lead in obesity treatments to U.S. rival Eli Lilly, whose product Zepbound now surpasses Wegovy in weekly prescriptions by over 100,000. Analysts argue that the new CEO’s top priority will be to restore Novo’s performance in the U.S., the most lucrative market. Source

Market Indices Reflect Mixed Reactions

The broader market indices reflected these developments. The S&P 500 fell 0.3% to 6,370.86, ending a six-day winning streak. The Dow Jones Industrial Average dropped 204.57 points (0.5%) to 44,632.99, and the Nasdaq composite declined 0.4% to 21,098.29. This pullback came as investors awaited updates from a Federal Reserve interest rate meeting and processed mixed corporate earnings reports. Despite the day’s downturn, the broader outlook remained positive: for the year, the S&P 500 is up 8.3%, the Dow up 4.9%, the Nasdaq up 9.3%, and the Russell 2000 up 0.6%. However, indexes have ticked down slightly so far for the week. Analysts indicated that U.S. economic data remains solid but shows signs of slowing, contributing to falling treasury yields. Source

Conclusion

The stock market’s performance on July 29, 2025, was significantly influenced by major tech earnings reports and Novo Nordisk’s profit warning. These events underscore the market’s sensitivity to corporate performance and strategic decisions, highlighting the importance for investors to stay informed about key developments within major corporations.