Public Markets 3 Days

Last updated: July 30, 2026, 2:30 PM ET

Markets React to Inflation Fears and Fed Uncertainty

Bond yields remained elevated amid concerns over the Federal Reserve's inflation control efforts, while Treasury yields edged higher reacting to U.S. indicators and Fed uncertainty. Investors warned of a "credibility shock" looming over the Fed, with bonds selling off sharply after the latest rate decision, signaling growing turmoil between markets and the central bank. Traders are also warning that the lack of guidance on interest rates from Fed Chairman Kevin Warsh is eroding the U.S. central bank’s influence on the Treasury market. U.S. stocks leaped after a punishing session, with the Nasdaq composite gaining about 2% as chip stocks rebound, though overall U.S. stocks slid after the Fed held rates steady and the war in Iran escalated. The Nasdaq 100 index, pushing the broader market lower as the Federal Reserve refrained from raising interest rates, but a trio of dissents signaled support for tighter policy.

Corporate Earnings and Dealmaking

Microsoft Corp. is on track to record the largest one-day increase in market value for any stock in history, reaching a $490 billion pop. Xerox Holdings Corp. sold tariff at a discount to raise cash and reduce its debt load, aiming to address hefty maturities over the next three years. The Italian aerospace-and-defense group Leonardo lifted its guidance, expecting roughly €28.2 billion in orders compared to prior guidance of about €25 billion. GE Health Care reported that increased orders and healthy demand to $5.3 billion in the second quarter, boosted by an 11% increase in total orders. Universal Music logged higher revenue on subscriptions and streaming growth, with revenue increasing 13% year-on-year to $3.77 billion through June. Sanofi shares slid after its CEO signaled challenges to fill the drug pipeline, prompting a revamp of R&D operations and an intensification of dealmaking. Bristol Myers Squibb raised its outlook for the year after notching higher profit and revenue, boosted by its portfolio of newer treatments.

Commodities and Energy Markets

A global shortage of diesel, exacerbated by Ukrainian attacks on Russian refineries and lower Chinese refinery runs, with implications for economies and inflation. U.S. natural gas futures turned higher as inventories increased by less than expected last week. Crude oil futures were giving back some of the previous day’s gains after the U.S. launched strikes against Iranian targets. Saudi Arabia’s quarterly fiscal deficit, benefiting from a spike in global oil prices even as the Iran war shrank the economy. U.S. refiners are turning crude oil into products like gasoline and diesel at a pace not seen since before the Covid-19 pandemic, but even that is unlikely to rein in soaring prices soon. Commercial crude oil inventories to 404.5 million barrels in the week ended July 24.

Global Currencies and Trade

The Japanese yen versus the dollar in possible intervention, with recent gains raising the prospect that the Japanese government has intervened to prop up the currency. The yen later surged by more than 2% against the U.S. dollar, marking its biggest jump since Japanese officials intervened in the market earlier this year as speculation swirls. Apple topped a $5 trillion valuation for the first time, gaining due to its lack of huge spending on AI and as investors seek havens from the sell-off in the chip sector. Products from Lesotho, which had endured the highest tariffs from the U.S., can now enter the world’s biggest economy duty-free following a shift. China threatens retaliation as the U.S. moves to block robot imports, highlighting robotics as the latest battleground in the intensifying technological and industrial rivalry.

Investment Funds and Private Equity

Ontario Municipal Employees Retirement System from CAAT Pension Plan to help build its private equity funds strategy. The once-high flying hedge fund Situational Awareness by Kenneth Griffin’s Citadel. Citadel bought Situational Awareness's equity holdings after steep AI losses, following overnight crunch talks with investors. GAM's Paul Markham says the chip selloff is not yet a buy-the-dip moment as investor positioning remains crowded. KKR profits soared as it cashed in a record amount of private equity bets, weathering turmoil that has curtailed asset sales and fundraising by other players. Blue Owl’s private credit fundraising fell to its slowest pace in three years, though demand for data centre investments helped bolster the group.

Retail and Consumer Goods

Crocs Inc. stepped up but with a dim near-term view, raising its sales and profit outlook for the full year, though expectations for the current quarter missed Wall Street targets. Jersey Mike’s Subs Inc. shares slumped 8.7% in their trading debut after the company and some shareholders raised $1 billion in an IPO that priced at the midpoint. Reformation Inc., a sustainable womenswear brand, opened flat at its IPO price after raising $210.9 million in a listing. Adidas shares were on course for a record one-day fall after its earnings were squeezed by heavy marketing spending on the FIFA World Cup. Altria Group had virtually flat revenue and lower profit in the second quarter, as lower sales of its nicotine pouches offset some of the growth in its cigarettes business. Mastercard's sales rose in the second quarter, driven by growth in its payment network. Yum Brands said its teams are working quickly and transparently in response to a food-safety crisis after public-health officials linked shredded lettuce to an outbreak.

Technology and AI

Amazon’s Zoox received clearance to start paid robotaxi rides, a first for a purpose-built autonomous vehicle. Chip-equipment supplier ASM International as AI fuels orders, expecting revenue to exceed its previous 2027 target. The Nifty IT Index’s correlation with the Philadelphia Semiconductor Index has fallen to its lowest level since 2018, as Indian IT stocks stage a comeback while global AI trade falters. Data center firm Equinix Inc. is looking to raise at least $3 billion from a sale of U.S. investment-grade bonds. Communities in Scotland fear a data centre boom will squeeze access to electricity and water, spoil rural areas, and boost tech giant profits with limited local job creation sparking a backlash.

Defense and Aerospace

Banks are in talks to lend $15 billion for an Anthropic data center backed by Google, with Google’s guarantees of power and lease obligations expected to help the developer secure financing for the.6-gigawatt Texas project. ING's defense loan book could double in the next couple of years, according to its CEO, following the bank's increased guidance for this year and next for defense loans. The Indian Air Force it wants domestic manufacturers to produce after wars disrupted defense supply chains. Bombardier logged a slight decline in second-quarter profit, despite strong revenue from aftermarket service growth and soaring demand for its flagship Global 8000 jet as revenue jumped.