Tesla and Alphabet stocks delivered sharply contrasting movements on Thursday, sending their shares in opposite directions and exposing choppy undercurrents beneath Wall Street’s calm surface.Alphabet rallied 3.1% after it beat quarterly profit estimates and announced a $10 billion increase in AI chip and infrastructure investment this year, taking its total to $85 billion. The move buoyed other AI-related stocks, including Broadcom.But Tesla tumbled 9.2% as investors reacted to Musk’s warning of “rough quarters” ahead. Despite Q2 results roughly in line with analyst expectations, Musk said the company was in a “weird transition period” and would lose key US incentives in the near term.The S&P 500 edged up 0.1% in early trade, extending its record run, while the Nasdaq gained 0.3%. The Dow Jones Industrial Average slipped 0.6%, or 265 points, dragged lower by Tesla and airlines, AP reported.Airline stocks also fell sharply. American Airlines dropped 9.3% despite beating Q2 earnings expectations, citing a potential summer-quarter loss. Southwest Airlines shed 8.9% after weak results, though it hinted at improving demand.The broader equity rally, fueled by hopes of pre-deadline US trade deals and easing inflation pressures, faces rising scrutiny over high valuations. Analysts say sharp individual stock swings continue to underpin an otherwise steady S&P 500, which hasn’t moved by more than 1% in a day for a month.In the bond market, Treasury yields inched up after jobless claims declined, reinforcing expectations that the Federal Reserve will hold rates steady next week despite pressure from President Trump for cuts. The 10-year yield rose to 4.43%.Globally, major indices posted gains, with Tokyo’s Nikkei up 1.6% and London’s FTSE 100 up 0.8%.