Wednesday, July 29, 2026

Wall Street suffered a broad sell-off on Wednesday after a hawkish Federal Reserve decision and escalating Middle East conflicts rattled investors. The Dow Jones plunged 2.19% to 51,594.14, while the S&P 500 tumbled 1.52% to 7,316.15 and the Nasdaq dropped 1.74% to 24,442.941. The Russell 2000 also fell 1.61% to 2,906.31, pushing the VIX volatility index up 13.45% to 20.66 as risk appetite evaporated, while safe-haven Gold crept up 0.52% to 4,119.8.

Sectors in focus

• Energy and Services: WTI Crude surged 6.90% to 84.73 on fears of Strait of Hormuz supply disruptions following joint US-Saudi airstrikes in Iraq and retaliatory Iranian missile barrages. This lifted Crude Petroleum & Natural Gas by 3.19% and Retail-Auto Dealers & Gasoline Stations by 3.49%. Investors also rotated into service sectors, with Management Consulting Services jumping 5.95%.
• Tech and Aerospace: The Fed held rates at 3.50%-3.75%, but Chair Kevin Warsh's focus on price stability and a hawkish 9-3 vote spooked markets. High-valuation AI tech stocks sold off heavily, dragging Electronic Components & Accessories down 7.31%. Surprisingly, despite the geopolitical flare-ups, Guided Missiles & Space Vehicles & Parts plunged 9.22% and Aircraft fell 7.15% to lead the day's laggards alongside Finance Services (-7.12%).

On the radar

• Jul 29: Meta (META) and Microsoft (MSFT) Q2 earnings after close
• Jul 30: Q2 GDP Advance Estimate and June PCE inflation data
• Jul 30: Amazon (AMZN) and Apple (AAPL) Q2 earnings
• Jul 31: Employment Cost Index (ECI) for Q2 2026
• Aug 05: ISM Services Index and July Trade Balance