This content was published on
July 29, 2026 - 20:10
4 minutes
(Bloomberg) — Wall Street traders paced a bounce in stocks and bonds from session lows as the Federal Reserve held off on raising interest rates as it assesses the impacts of the Iran war on inflation. Oil climbed.The S&P 500 almost wiped out its decline in the immediate aftermath of the decision and Treasury two-year yields retreated. The vote marked the fifth straight time officials have opted to leave rates unchanged. The Fed’s post-meeting statement was identical to the one issued following the June meeting. Officials repeated their pledge to “deliver price stability.”The Federal Open Market Committee voted 9-3 to hold the benchmark federal funds rate in a range of 3.5% to 3.75%. Dallas Fed President Lorie Logan, Cleveland’s Beth Hammack and Minneapolis Fed chief Neel Kashkari dissented in favor of raising rates by a quarter percentage point.Meantime, President Donald Trump told Fox News the US would hit Iran hard after a recent attack that targeted a military base in Jordan. The latest clashes underscore how far Washington and Tehran are from formally restarting peace negotiations, let alone agreeing on a deal to permanently end their war and revive the Strait of Hormuz.While the focus has turned to the Fed outlook, the tech sector is still the most important issue on the docket for investors this summer, according to Matt Maley at Miller Tabak.Despair and frustration spread across the South Korean retail-investing community as stocks cratered again Wednesday, extending the decline in the nation’s key equity index this month to a record 33%.The Kospi Index slid as much as 13% in a hectic morning session, triggering a circuit breaker. SK Hynix Inc. earmarked at least $31 billion in capital spending this year after reporting a six-fold surge in quarterly profit, a record outlay that coincides with fears about investments in AI capacity.“The decline in the chip stocks and the dramatic fall in South Korea’s Kospi are clear warning signs for US investors,” Maley said. “If history is any guide, these developments could be important examples of a canary in the coal mine.”Corporate Highlights:Ford Motor Co. raised its profit outlook for the second time this year as consumers continue to snap up the automaker’s high-margin sport-utility vehicles. Procter & Gamble Co. gave a conservative outlook and its results missed estimates, highlighting the challenges the maker of Downy fabric softener and Febreze air fresheners faces as consumers retrench. Caterpillar Inc. fell after Baird cut its recommendation on the industrial giant, warning of a growing push to restrict the data-center buildout that has driven much of the company’s recent growth. Humana Inc. spent more on medical expenses in the second quarter in its insurance segment than Wall Street anticipated, the latest worrying sign for an industry managing increasing costs. Biogen Inc. reported earnings that beat analysts’ expectations as sales of newly acquired kidney and eye-disease drugs helped offset declining revenue from multiple sclerosis medicines. What Bloomberg Strategists say…“Investor reaction to Meta and Microsoft earnings will tell us a lot about how the consensus view on AI spending has shifted.”—Sebastian Boyd, Macro Strategist, Markets Live. For the full analysis, click here.Some of the main moves in markets:StocksThe S&P 500 fell 0.3% as of 2:08 p.m. New York time The Nasdaq 100 fell 0.2% The Dow Jones Industrial Average fell 1.4% The MSCI World Index fell 0.2% Philadelphia Stock Exchange Semiconductor Index fell 2.1% CurrenciesThe Bloomberg Dollar Spot Index fell 0.2% The euro rose 0.3% to $1.1421 The British pound rose 0.3% to $1.3334 The Japanese yen rose 0.2% to 163.55 per dollar CryptocurrenciesBitcoin rose 0.8% to $64,324.47 Ether was little changed at $1,918.22 BondsThe yield on 10-year Treasuries advanced three basis points to 4.63% Germany’s 10-year yield advanced six basis points to 3.16% Britain’s 10-year yield advanced nine basis points to 5.04% CommoditiesWest Texas Intermediate crude rose 6.7% to $84.60 a barrel Spot gold rose 1.2% to $4,078.40 an ounce ©2026 Bloomberg L.P.
