Daily News 3rd July 26
Daily News
Dow Plunges 1,100 Points and Nasdaq Sinks as Fed Holds Rates on a Split Vote Amid Fresh U.S. Strikes on Iran; Gold Steadies Near $4,050, Crude Slips Below $84; Microsoft Jumps 8% on Azure Strength While Meta Slides on Soft Guidance
30 July 2026
Today in Brief
Asia-Pacific markets traded mostly lower Thursday, with Japan's Nikkei 225 the lone gainer at 0.77% even as the Topix slipped 0.44%; the Kospi fell 0.92% and the Kosdaq dropped 1.91%, while Australia's S&P/ASX 200 lost 0.81%. The sell-off followed a punishing Wednesday on Wall Street, where the Dow Jones Industrial Average plunged more than 1,100 points, or 2.2%, the S&P 500 dropped 1.5% and the Nasdaq Composite sank 1.7% after the Federal Reserve held interest rates steady in a split decision, with three officials dissenting in favor of a hike, and oil prices rose on renewed Middle East tensions. Gold steadied around $4,050 an ounce, while crude slipped back below $84 a barrel. In after-hours earnings, Meta shares fell 7% on a soft revenue forecast even as Microsoft jumped 8% on strong Azure growth and steady 2026 capital spending plans.
In other news: U.S. forces carried out a fresh wave of strikes against Iran after a surprise missile attack on American troops, dashing hopes of de-escalation as the conflict widened into the Red Sea with Houthi threats against Saudi Arabia; China's commerce ministry threatened retaliation over a new U.S. humanoid-robot import restriction, warning it "severely damages" bilateral relations; the Bank of England was expected to hold rates steady Thursday as it weighs an oil-driven inflation squeeze tied to the ongoing closure of the Strait of Hormuz; Samsung Electronics posted a record quarterly operating profit, up 1,814% year on year, on soaring AI chip demand; and defense contractor L3Harris beat quarterly revenue estimates on strong weapons demand and raised its full-year sales outlook.
Nikkei edges higher as Kospi and Kosdaq extend losses following Wall Street's Fed-driven sell-off
In Asia, Japan's Nikkei 225 gained 0.77% while the Topix declined 0.44%. The Kospi lost 0.92% in choppy trade extending its sharp drop on Wednesday, while the small-cap Kosdaq fell 1.91%. Australia's benchmark S&P/ASX 200 was 0.81% lower. Meta Platforms lost 7% in extended trading after issuing a soft revenue forecast. Microsoft, by contrast, jumped 8% on surging growth from its Azure business. The results underscored a widening divergence in how Big Tech's AI strategies are playing out.
Dow plunges by 1,100 points, S&P 500 and Nasdaq sink as yields rise on Fed's hawkish hold
US stocks dropped on Wednesday as bond yields rose after the Federal Reserve voted to hold rates steady, with three members dissenting and voting for a hike. The Dow Jones Industrial Average (^DJI) fell more than 1,100 points or 2.2% as oil prices rose amid renewed tensions in the Middle East, and long-dated Treasury yields rose following the Fed decision. The S&P 500 (^GSPC) dropped 1.5%, while the tech-heavy Nasdaq Composite (^IXIC) sank about 1.7% as a sell-off in chip stocks continued to deepen.
Gold steadies around $4,050 an ounce as Fed's rate hold offers support to bullion
Gold steadied around $4,050 an ounce on Thursday after rising in the previous session, as the Federal Reserve left interest rates unchanged despite mounting inflationary pressures stemming from renewed conflict in the Middle East. The decision offered some support to bullion, as higher interest rates tend to weigh on demand for non-yielding assets. Still, three FOMC members dissented in favor of a rate hike, while Chairman Kevin Warsh said that if inflation remains elevated throughout the forecast period, higher interest rates could become an appropriate policy response. Elsewhere, both the BOE and the BOJ are widely expected to keep interest rates unchanged this week while maintaining a cautious approach to inflation. In the Middle East, President Donald Trump pledged a strong response after an attack on US forces in Jordan. Meanwhile, the two sides continued to struggle to reach a potential agreement as Tehran insisted on retaining control of the Strait of Hormuz.
Crude slips below $84 a barrel even after fresh U.S. air strikes on Iran
Crude oil slipped below $84 per barrel on Thursday, paring gains from the previous session even after the US carried out a fresh wave of air strikes against Iran in response to attacks on American forces across the Middle East, raising concerns over further disruptions to global energy supplies. The two sides also remained unable to reach a potential agreement as Tehran insisted on maintaining control of the Strait of Hormuz. The conflict has now expanded beyond Hormuz into the Red Sea, where Iran-backed Houthi rebels in Yemen threatened to blockade Saudi Arabia, prompting Riyadh to join US forces in launching strikes on targets in Iraq linked to Tehran-backed militants. In the US, commercial crude inventories posted their largest draw since mid-June, reinforcing signs of a tightening physical market.
China threatens retaliation against U.S. humanoid robot import ban, says it "severely damages" relations
The U.S. Federal Communications Commission has repeatedly ignored Beijing's restrained stance on product bans, China's commerce ministry said Thursday, threatening retaliation. The FCC on Tuesday said due to cybersecurity concerns, it added foreign-made advanced robotic devices, including humanoids, to a list restricting imports to the U.S. The statement did not specify a country, and said retailers could still import models the FCC has previously approved. As the FCC keeps escalating restrictions on Chinese goods, it "severely damages China-U.S. economic and trade stability," China's commerce ministry said in an online statement Thursday. That's according to a CNBC translation of Mandarin. The ministry urged the U.S. to withdraw the decision, and threatened countermeasures if it failed to do so.
U.S. strikes Iran after surprise missile attack, dashing hopes of de-escalation
The U.S. forces completed a "heavy wave" of strikes against Iran at 10 p.m. Wednesday stateside, in retaliation against Iranian missile attacks on American forces in the region, raising the specter of escalating conflict after a brief pause. U.S. Central Command described the operation as a "powerful response" to Tuesday's attempted Iranian attacks on U.S. forces in the Middle East. The two-hour attack hit dozens of Islamic Revolutionary Guard Corps targets across Iran, including military command centers, missile and drone facilities, coastal surveillance and defense sites, and maritime capabilities, Centcom said. The strikes were aimed at further degrading threats from Iran and its proxies to US forces, commercial shipping and neighboring Gulf states, it said.
Fed holds interest rates steady, but three officials dissent in favor of a hike
The Federal Reserve held interest rates steady for the fifth consecutive policy meeting this year, amid a rebound in oil prices driven by renewed tensions in the Middle East. The central bank voted in a split decision to hold its benchmark interest rate in the range of 3.5% to 3.75%. Minneapolis Fed president Neel Kashkari, Dallas Fed president Lorie Logan, and Cleveland Fed president Beth Hammack dissented, preferring to raise rates by a quarter percentage point. Officials made no changes to their policy statement, reaffirming that inflation remains elevated due to the increase in energy prices from the Middle East conflict, and they repeated their commitment that the "committee will deliver price stability."
Bank of England set to keep rates steady while oil prices gyrate
The Bank of England looks set to keep interest rates steady on Thursday as it weighs the impact of the on-again, off-again Iran war that has closed the Strait of Hormuz for the past five months and intensified inflation pressures. Unlike the European Central Bank, which raised rates in June, Governor Andrew Bailey has said the BoE's signal back in March that previously expected cuts to borrowing costs were off the table due to the war is likely to keep inflation in check. The U.S. Federal Reserve left rates unchanged on Wednesday, but three of the 12 members of the Federal Open Market Committee said they would have preferred a quarter-point rate rise, while Chair Kevin Warsh said he had "no tolerance" for inflation.
Samsung Electronics second-quarter operating profit beats estimates on soaring AI chip demand
Samsung Electronics extended its record run with second-quarter operating profit topping analysts' estimates, as robust artificial intelligence demand continues to drive growth in its memory chip business. The South Korean tech giant posted a record quarterly operating profit, up 1,814% year on year, while revenue rose 130%. Profit jumped over 56% from the previous quarter, while revenue climbed more than 28%. Both operating profit and revenue were in line with Samsung's forecast released earlier this month. The company cited AI server demand as the key driver for its record-breaking memory earnings, which helped it achieve all-time high DRAM and NAND sales. Those chips are used in a wide range of electronic devices, from smartphones to automotive systems and servers.
Meta's stock drops on disappointing guidance, dwindling free cash flow
Meta shares slid in extended trading on Wednesday after the company issued a weaker-than-expected revenue forecast and took a big hit to its cash pile. Meta said it expects revenue this quarter of between $61 billion and $64 billion, or $62.5 billion at the middle of the range. Analysts were expecting guidance of $63.15 billion, according to LSEG. The company said that the guidance "assumes foreign currency is an approximately 1% headwind to year-over-year total revenue growth, based on current exchange rates." Daily active people, or DAP, came in at 3.6 billion, trailing Wall Street estimates of 3.61 billion, according to StreetAccount. DAP measures the number of users of Meta's family of apps.
Microsoft jumps 8% as it boosts capital spending plans, citing demand
Microsoft shares moved 8% higher in extended trading on Wednesday after the software maker disclosed strong fiscal fourth-quarter revenue and called for steady 2026 capital expenditures. Net income of $35.77 billion, or $4.81 per share, increased from $27.23 billion, or $3.65 per share, in the same quarter a year ago. Microsoft cited a $3.2 billion gain from its investment in artificial intelligence lab Anthropic and lower-than-expected costs tied to its first-ever voluntary retirement program. Meanwhile, its Xbox gaming business received an impairment charge. As of Wednesday's close, the software maker's shares have given up 19% so far in 2026, while the S&P 500 index has gained about 7%. Investors have squeezed longstanding software stocks this year, acting on fears of disruption from generative artificial intelligence models.
L3Harris beats quarterly revenue estimates on strong weapons demand
Defense supplier L3Harris Technologies beat Wall Street estimates for second-quarter revenue on Wednesday, as it banks on strong demand for weapons and military technology. Defense contractors are seeing increased demand as the Pentagon moves to replenish missile and munitions stockpiles depleted by a series of conflicts, including the ongoing Iran war and the Russia-Ukraine war. L3Harris' missile solutions segment, which makes propulsion systems and hypersonic weapons, posted a 14% rise in revenue. The Melbourne, Florida-based company reported a quarterly profit of $3.13 per share, up from $2.44 per share last year. Total revenue for the second quarter was $5.88 billion, up 8.4% from a year earlier and above analysts' estimates of $5.81 billion, as per data compiled by LSEG. It now expects 2026 sales in the range of $23.2 billion to $23.7 billion, up from $23 billion to $23.5 billion forecast previously.
