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July 30, 2026 - 00:11
5 minutes
(Bloomberg) — Asian stocks were set to track Wall Street lower after renewed concerns over artificial intelligence spending and uncertainty over the Federal Reserve’s policy outlook sent longer-dated Treasury yields to their highest levels in almost two decades.Equity-index futures for Australia, Japan and South Korea all pointed lower after the S&P 500 fell 1.5%, dragged down by a fresh selloff in chipmakers. The Nasdaq 100 entered a technical correction, taking its decline from a record high to 11%. After the close, Meta Platforms Inc. issued a lackluster forecast, while Microsoft Corp. reported its fastest cloud-computing growth in four years which helped lift US stock futures in early Asian trading.The Treasury yield curve steepened after the Fed held rates steady. The 30-year yield jumped more than 10 basis points to the highest level since 2007, while the benchmark 10-year yield climbed five basis points to 4.66%. Two-year yields, which are more closely tied to monetary policy expectations, fell six basis points to 4.23%. The dollar posted its biggest drop in two weeks.Fed Chair Kevin Warsh said the decision to leave rates unchanged wasn’t a sign of inertia at the central bank, and said that markets would be free to chart their own course based on economic signals. Three of the Fed’s 12 voting officials dissented in favor of a rate increase, highlighting the persistent concerns over inflation.The lack of updated policy guidance, combined with a divided committee, left investors with little clarity on the path for interest rates. That uncertainty is likely to keep volatility elevated across bond markets as traders parse incoming inflation and growth data for clues on the Fed’s next move.“There is very little to hang your head on in the markets,” Torsten Slok, chief economist at Apollo Global Management, told Bloomberg Television. “It was also a little bit complicated to figure out what was the basis of the decision today,” adding that the Fed’s abandonment of guidance is fueling historic bond market volatility.Read: JPMorgan’s Michele Says Dissenting Fed Trio Sends Crucial SignalElsewhere, oil roared back from its worst three-day decline since 2020 as a fresh round of fighting erupted across the Middle East, a reminder of the ongoing risk to supplies in the region.Brent settled near $91 a barrel on Wednesday, spiking about 8%. Futures have been whipsawed this month as the US and Iran went from escalation to efforts at diplomacy, and now back to trading military fire.Traders remain focused on diplomatic moves to end the war, as well as signs that flows through key chokepoints remain compromised. The so-called call skew for Brent, or the premium traders pay for options betting on further price gains, jumped to the highest level since late April.The global benchmark is also experiencing reduced liquidity ahead of its expiry on Friday, contributing to exaggerated price moves.“We remain exceedingly skeptical that we are on the brink of a major diplomatic breakthrough that will resolve the nuclear standoff that started the war,” RBC Capital Markets LLC analysts including Helima Croft said in a note. “The ongoing threat of missiles, mines, drones, and Tehran tolls will keep a significant portion of the shipping market on the sidelines,” they added.Corporate Highlights:Qualcomm Inc., the largest maker of smartphone processors, gave a weak profit forecast for the current quarter, signaling that component shortages and rising costs are taking a toll on its main market. Arm Holdings Plc delivered a sales forecast that failed to impress investors, who have grown increasingly wary about chip-industry prospects in recent days. Starbucks Corp. raised its annual outlook after quarterly results surpassed market estimates, a sign that efforts to attract diners with speedier service and new products are paying off. Some of the main moves in markets:StocksS&P 500 futures were little changed as of 7:05 a.m. Tokyo time Hang Seng futures rose 0.7% S&P/ASX 200 futures fell 0.6% CurrenciesThe Bloomberg Dollar Spot Index fell 0.3% The euro was little changed at $1.1468 The Japanese yen was little changed at 163.42 per dollar The offshore yuan was little changed at 6.7608 per dollar The Australian dollar was unchanged at $0.6956 CryptocurrenciesBitcoin rose 0.8% to $63,931.05 Ether rose 1.2% to $1,904.81 CommoditiesWest Texas Intermediate crude was little changed Spot gold rose 0.1% to $4,072.51 an ounce This story was produced with the assistance of Bloomberg Automation.©2026 Bloomberg L.P.
