Public Markets 3 Days

Last updated: July 29, 2026, 8:30 PM ET

Federal Reserve Policy and Market Reactions

The Federal Reserve opted to keep interest rates on hold, a decision that spurred a rise in gold prices advanced despite ongoing inflationary pressures linked to the Middle East conflict. However, this pause was met with skepticism from investors who are reportedly craving a more aggressive stance on inflation. The bond market sent a clear warning that tough talk from Fed Chairman Kevin Warsh is insufficient without concrete action to tame inflation. Government borrowing costs subsequently hit a two-decade high following the Fed's decision, signaling investor doubt about the central bank's ability to contain inflation. This hawkish hold on rates led to a fall in Treasury yields and the dollar, with the dollar dropping to its lowest in nearly a week after the announcement. The market's reaction saw the Nasdaq 100 enter correction territory, and the S&P 500 fell after the Fed's pause, with dissenting votes for rate hikes suggesting internal divisions within the Fed. The Fed's communication void is fueling significant bond market volatility, causing Treasury yields to swing dramatically.

Corporate Earnings and Strategic Moves

Used-car retailer Carvana reported a surge in car sales and record profits, yet shares slumped as much as 15% after missing Wall Street expectations shares slumped. Qualcomm posted shrinking sales and profits, with net income falling 25% due to higher memory chip prices impacting its device business. Microsoft saw its profits jump 31%, surpassing $100 billion in quarterly sales driven by Azure cloud growth, and further increased its spending on AI initiatives. Meta's profit fell 14% as AI spending continued to outpace revenue growth. Johnson & Johnson reached a strategic agreement with Sail Biomedicines, involving an initial payment of $785 million and an option to acquire Sail for $2.58 billion. In the IPO market, sandwich chain Jersey Mike's and its backers raised $1 billion in an offering that priced at the midpoint of its range. Separately, biotech firm Attovia Therapeutics Inc. is seeking to raise as much as $212.5 million in a US IPO. Zhongji Innolight Co. is set to debut in Hong Kong after raising HK$53.4 billion ($6.8 in the city's largest listing in seven years.

Global Economic and Market Trends

The UK property market is experiencing a sharper-than-usual summer slowdown, with data suggesting a buyer's market due to higher mortgage rates and economic uncertainty. The US high-grade corporate bond market experienced its highest level of dysfunction in nearly three years during July, according to the Federal Reserve Bank of New York dysfunction rose. Oil prices steadied after a significant daily jump, influenced by President Trump's threats of further strikes in Iran and a decline in US stockpiles oil steadied. US refiners are producing fuel at pre-pandemic levels, but this is unlikely to curb soaring prices amid a historic demand. Philippine banks are setting aside the most funds for potential loan losses since at least 2008, anticipating defaults as the Middle East conflict impacts its economy. Financial stocks in Hong Kong are poised for their largest monthly gain in two years, with investors shifting towards banks and insurers as enthusiasm for tech shares wanes.

Geopolitical Tensions and Real Estate

The conflict in the Middle East is widening, with Iran increasing its influence and President Trump reportedly weighing military options. Saudi Arabia's strikes in Iraq mark its entry into the US-Iran war. Families are experiencing anxiety as loved ones are deployed to fight Iran, with the ongoing war exacerbating existing anxieties. Two tankers were hit in an apparent drone strike in Egypt, causing a fire on board a US gas storage tanker. New York City's second-home tax is causing confusion and anxiety for some residents who feel their addresses are being unfairly disclosed. In real estate, work has been halted at another office conversion project in Midtown Manhattan due to structural concerns, marking the third such incident recently.

Technology and AI Developments

Meta shares tumbled 10% as CEO Mark Zuckerberg defended his strategy for AI 'agents,' amidst rising costs and disappointing revenue projections. Microsoft is increasing its investment in AI, with its chief executive warning of a significant cybersecurity threat following a hacking incident at OpenAI. The tech sector is grappling with the debate around open versus closed AI models, with investors and policymakers needing to consider both approaches for the sector's future. AI companies are actively recruiting electricians and carpenters in large numbers, indicating a growing demand for specialized labor in the sector. Google Deep Mind is dismantling its Nobel-winning Alpha Fold team as part of a strategic shift towards building broader AI systems for scientific discovery.

Other Notable Market and Business News

Fortress Investment Group has agreed to purchase up to $1.5 billion of loans from fintech unicorn Wayflyer to support its growth. The transportation sector is seeing activity, with MGM Resorts reporting a revenue increase driven by its Las Vegas Strip properties. In the automotive industry, BMW is considering cutting 8,000 jobs amid mounting challenges in China, while Ford Motor has raised its full-year guidance due to expectations of higher US automobile pricing. Pilgrim's Pride reported lower profits and sales, attributing the decline to reduced commodity market pricing. C.H. Robinson saw its profit rise, boosted by higher prices that increased revenue. Sturm Ruger swung to a profit, with its revenue growth driven by increased firearms demand and higher average selling prices.

Regulatory and Political Developments

Senators Cornyn and Tillis are threatening to block a nomination over a deal related to President Trump's suit against the IRS. The appointment of a lawyer who represented Trump as the U.S. Attorney in Manhattan has been made. New York City's pied-à-terre tax is causing anxiety among homeowners, with some asserting they only own one property. A bipartisan Senate bill could grant President Trump expanded tariff powers on major importers of Russian energy. The New Zealand markets watchdog's CEO is on leave pending a review of workplace culture.

Commodities and Energy Markets

US natural gas futures steadied in early trading, ending a four-session losing streak as the August contract expired. The US Strategic Petroleum Reserve is being monitored as its levels decline, with questions arising about how low it can go. Turkey has lifted its milling wheat export ban, anticipating a record harvest after a year-and-a-half pause. The UK stock market saw a rebound from the Iran war sell-off, with banks and oil companies leading the gains. European wildfires have highlighted a shortage of Canadair water-bomber planes, sparking political backlash.