Public Markets 8 Hours

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

Federal Reserve and Market Reaction

The Federal Reserve at its latest meeting, though internal divisions over inflation policy were evident, with three officials favoring an increase as reported by the New York Times. This decision followed a period of strong rhetoric from Fed Chairman Kevin Warsh regarding inflation, which investors found unconvincing, leading to increased pressure on the central bank to demonstrate a genuine commitment to curbing price rises as detailed by Bloomberg. The bond market sent a clear message that tough talk alone is insufficient, with government borrowing costs hitting a two-decade high after the Fed's announcement, suggesting investors doubt the central bank's ability to contain inflation according to the New York Times. This uncertainty has fueled significant volatility, with Treasury yields swinging dramatically, a phenomenon attributed by some to the Fed's abandonment of forward guidance as noted by Bloomberg. Consequently, U.S. stocks fell sharply following the Fed's pause and amid escalating concerns over the war in Iran, which raises the risk of prolonged inflation as reported by the Wall Street Journal. The dollar also declined to its lowest point in nearly a week after the Fed's decision, despite the hawkish undertones of some officials voting for a hike as observed by Bloomberg and the Wall Street Journal.

Corporate Earnings and Dealmaking

Jersey Mike’s Subs Inc. and its backers in an initial public offering that priced at the midpoint of its marketed range. Zhongji Innolight Co. is poised for its largest listing in seven years in Hong Kong, having raised HK$53.4 billion ($6.8 as reported by Bloomberg. Meanwhile, Fortress Investment Group has agreed to purchase as much as $1.5 billion of loans from fintech unicorn Wayflyer to support the Irish finance platform’s expansion according to Bloomberg. Johnson & Johnson has entered a strategic agreement with Sail Biomedicines, involving initial payments of $785 million and an option to acquire Sail for $2.58 billion as detailed by the Wall Street Journal. In the biotech sector, Attovia Therapeutics Inc. is seeking to raise as much as $212.5 million in a U.S. initial public offering reported by Bloomberg.

Technology Sector Performance

Microsoft reported 31% in profits, with Azure cloud sales surpassing $100 billion, ending its fiscal year with $90 billion in quarterly sales and beating Wall Street expectations as stated by the Wall Street Journal. The company is also increasing its spending on artificial intelligence, hoping to translate aggressive investment into revenue. Meta's shares, however, tumbled 10% as CEO Mark Zuckerberg defended his AI "agents" strategy amid rising costs and disappointing revenue projections. The social media giant's profit also fell 14% due to continued heavy investment in AI. In the semiconductor industry, Qualcomm reported shrinking sales and profits, with net income falling 25% due to higher memory chip prices impacting its device business as detailed by the Financial Times. South Korea's memory chip sector is facing a reality check, forcing even optimistic investors to reckon with nuance.

Real Estate and Consumer Markets

New York City's "second-home" tax, also known as the pied-à-terre tax, is among residents, with some homeowners feeling exposed by address publications and asserting they only own one property. In the UK, property sales are experiencing a summer slowdown that is "sharper than usual," with higher mortgage rates and economic uncertainty creating a buyer's market according to new data cited by the Financial Times. Starbucks' next challenge involves ensuring the consistent availability of all its food items, a goal being addressed through increased cafe labor and scheduling algorithms as stated by the Wall Street Journal.

Geopolitical Tensions and Energy Markets

Oil prices steadied after their largest daily jump in over two weeks, as President Trump vowed renewed strikes in Iran and U.S. stockpiles decreased. U.S. oil inventories have fallen to a "precariously low" level, with the war in Iran disrupting supply and potentially eroding the ability to supply Asian and European markets as reported by the Financial Times. U.S. refiners are producing fuel at levels not seen since before the pandemic, but this is unlikely to curb soaring prices amid a historic demand surge according to Bloomberg. U.S. natural gas futures settled higher, snapping a four-session losing streak as the August contract expired. Two tankers were in Egypt, with an explosion at a port igniting two ships, including a U.S. gas storage tanker.

Other Notable Developments

Carvana reported a record quarter with skyrocketing car sales and profits, but the used-car retailer still, causing its shares to slump as much as 15%. In the UK, Greggs shares soared as the baker defied concerns about peaking demand for its sausage rolls, continuing its expansion. C.H. Robinson reported a rise in second-quarter profit to $186.8 million, up from $152.5 million a year earlier, driven by higher prices boosting revenue as stated by the Wall Street Journal. Sturm Ruger swung to a profit, with revenue growth driven by increased firearms demand, an improved product mix, and a 10% rise in average selling price to $384 according to the Wall Street Journal. MGM Resorts saw its revenue edge up, primarily driven by its Las Vegas Strip resorts, where revenue rose 3% to $2.2 billion as reported by the Wall Street Journal.