Public Markets 24 Hours

Last updated: July 29, 2026, 5:30 PM ET

Federal Reserve Holds Rates Steady Amid Internal Divisions and Geopolitical Tensions

The Federal Reserve at its latest meeting, though internal divisions were apparent with three officials backing an increase. This decision and a decline in Treasury yields, which lost steam after the Fed’s announcement. Investors are now grappling with uncertainty regarding future policy moves, with some anticipating rate hikes later in the year, particularly as the war in Iran escalated. The dollar following the Fed's decision, with ING suggesting the dollar could follow oil prices downward if the Fed maintains its current stance on rates. Emerging market currencies, however, gained ground as the Fed’s hold pushed the US dollar lower.

Big Tech Earnings Mixed as AI Investments Continue to Drive Costs and Revenue

Microsoft reported a significant 31% jump in profits, driven by Azure cloud sales surpassing $100 billion and ending the fiscal year with $90 billion in quarterly sales. This profit surge was accompanied by increased spending on artificial intelligence, as the company. In contrast, Meta Platforms experienced a 6% tumble in its stock price as sales forecasts and profits disappointed, with a 14% fall in profit attributed to ongoing heavy investment in artificial intelligence that. Mark Zuckerberg faces pressure over these substantial AI expenditures. Qualcomm also, with net income falling 25% due to higher memory chip prices impacting its smartphone market and leading to a soft outlook for the current quarter.

Geopolitical Tensions and Supply Chain Disruptions Impact Energy Markets and Corporate Outlooks

U.S. stocks slid sharply following the Federal Reserve's pause on rates and an escalation in the Iran war, which fueled worries about potential future rate hikes and hotter-than-expected inflation. Shipping risks have spread across crucial Middle East oil routes, with attacks in the Strait of Hormuz and Bab al-Mandab strait disrupting tanker traffic and. U.S. oil inventories have fallen to "precariously low" levels, exacerbated by the Iran war disrupting supply and potentially eroding the ability to supply Asian and European markets. Procter & Gamble for its new fiscal year, anticipating a $1 billion hit from higher costs linked to the Iran war. Glencore's traders, however caused by the Iran conflict, with its marketing division set to report significantly higher adjusted earnings compared to the previous year.

Corporate Deal-Making and Financial Sector Activity Highlight M&A and Investment Trends

Grant Thornton's U.S. arm has agreed to purchase rival accountant CBIZ Inc. in a $5 billion deal, marking one of the largest acquisitions in the professional services sector in recent years for the target firm. Bloomberg LP has agreed to acquire Canoe Intelligence, a platform focused on automating private markets data collection for institutional investors, wealth managers, and family offices. In the banking sector, Bank of Montreal covering approximately $5 billion in corporate loans, following a trend of Canadian lenders tapping investor demand for such instruments. Deutsche Bank plans a fresh $569 million buyback after its pretax profit increased 11% year-over-year, adding to a previously completed 1 billion-euro buyback by the lender. UBS also plans a $3 billion buyback, driven by strong performance in its investment bank and wealth units lifting profit.

AI's Broad Impact: From Labor Demands to Corporate Strategy Shifts

The artificial intelligence boom is not only driving tech sector investments but also creating demand for skilled labor in non-traditional fields, with AI companies reportedly recruiting electricians and carpenters by the thousands to support the infrastructure needed for AI development and deployment. The Trump administration is repurposing federal land, including a former Cold War-era uranium enrichment facility, into data center campuses and gas plants. In a strategic shift, Google Deep Mind has dismantled its Nobel Prize-winning Alpha Fold team, a landmark project in protein folding, to focus on a broader race to build AI systems for scientific discovery. Despite the hype, an opinion piece suggests that AI's real value currently lies in its ability to complement, rather than replace, human workers, as evidenced by a recent hiring rebound in the jobs market.

Automotive and Aerospace Sectors Show Mixed Performance Amidst Market Shifts

Airbus profits have surged, with the world's largest planemaker handing over 237 aircraft as supply chain issues ease. Porsche AG has reaffirmed its full-year earnings guidance after first-half profitability rose, indicating tentative signs of traction for the sports-car maker's turnaround strategy, largely driven by a focus on selling pricier vehicles to customers. BMW, however, is considering cutting up to 8,000 jobs amid mounting woes in China, a move that follows a reduction in its sales and profitability guidance due to fierce competition in the Chinese market against rivals. Jet Zero's blended-wing aircraft, the Z4, has received a boost from Washington with a $3 billion loan commitment to aid in production, presenting a potential challenge to Boeing's dominance in the aircraft market with its novel design.

Retail and Consumer Goods Sectors Navigate Inflationary Pressures and Shifting Consumer Habits

Greggs shares have soared, defying fears of a peak in sausage roll demand as the UK chain continues its expansion by pivoting to cold fare like iced matcha and other summer menu items. Campari confirmed its 2026 sales outlook, with demand for its aperitif brands offsetting a slump in U.S. bourbon sales, recording 2.5% organic sales growth in the quarter through June driven by its core business. Procter & Gamble is working "harder than we've had to in a long time" to win over shoppers amidst inflation, with its CFO highlighting efforts to sell brands like Tide and Bounty to consumers facing economic pressures at the checkout. VF Corporation's revenue has fallen due to weakness in the Vans brand, though the company now expects full-year revenue to grow by at least 2% on a constant-currency basis, an increase from its previous target of 1% to 2%.

European Markets and Climate Concerns Amidst Wildfires and Drought

European wildfires have been amplified by an emptying countryside and fewer farms, with a warming planet and a shift away from agriculture setting the stage for larger fires across the continent according to reports. The lack of amphibious aircraft, such as Canadair water-bombers, has sparked political backlash as France and Spain grapple with blazes, exposing a shortage of these critical firefighting assets in the region. Half of England has been declared in drought following heatwaves, with the second consecutive summer drought described as "exceptionally serious" by the Environment Agency due to the conditions. Wildfire evacuations in France's oyster capital have impacted about half of the shellfish farms in Cap Ferret, according to industry officials affected by the fires.