Market Summary - July 29, 2026
Overview: The financial markets are experiencing a downturn due to a combination of geopolitical tensions in the Middle East, disappointing earnings from key technology suppliers, and concerns over inflation and interest rates. The US and European stock indices are under pressure, with significant declines in Asian markets as well.
US & European Stocks & Indices
Wall Street index futures are facing downward pressure, primarily influenced by escalating tensions in the Middle East and disappointing earnings from SK Hynix, a major supplier for Nvidia. The Nasdaq 100 futures are down by 0.5%, while the S&P 500 and Russell 2000 futures have decreased by approximately 0.15%. The Dow Jones futures remain relatively flat, buoyed by traditional value stocks. The European EU50 index has also dipped by 0.3%.
Asian Session
Asian markets have seen a sharp sell-off, with the KOSPI in South Korea plummeting by up to 11% at its lowest point, and Taiwan's benchmark index dropping nearly 4%. The Nikkei 225 futures are down 1.6%, although China's HSCEI index has managed to stay slightly positive, gaining 0.8%. Major tech companies have led the declines, with SK Hynix falling over 9% despite reporting record revenues, and other tech giants like Samsung and TSMC also experiencing significant losses.
SK Hynix Earnings Report
SK Hynix reported a staggering 557% increase in operating profit to 60.5 trillion won for the last quarter. However, both operating profit and revenue fell short of investor expectations, raising concerns about the sustainability of the AI boom and the semiconductor sector's momentum. This has led to a sharp sell-off in US after-hours trading, with SK Hynix shares dropping by 6%.
Macroeconomics & Geopolitics
Geopolitical tensions are escalating in the Middle East, with Iran indicating it will maintain its current stance regarding the Strait of Hormuz if no agreement is reached with Oman. Iran has also launched ballistic missiles toward a US base in Jordan, which were intercepted by Jordanian forces.
In Australia, the Consumer Price Index (CPI) inflation has decreased more than expected, falling from 4.0% in May to 3.8% year-on-year in June. This decline in inflation rates has cooled expectations for a central bank rate hike in the upcoming August meeting, leading to a retreat of the Australian dollar against other G10 currencies.
FX, Commodities & Cryptocurrencies
Foreign Exchange (FX)
The US Dollar Index is stalling ahead of the Federal Reserve's decision, with the Australian dollar being the weakest among G10 currencies due to the disappointing CPI data. The New Zealand dollar and Japanese yen are showing broad gains, supported by hawkish pressure on their respective central banks.
Commodities
Brent crude futures have rebounded by 3.3% to around $84–85 per barrel. However, the weekly API fuel report indicated an unexpected large build in US crude inventories, suggesting weaker-than-expected demand.
In precious metals, gold prices are stabilizing ahead of the FOMC decision, while silver has gained 1.3% to $57.90 per ounce.
Cryptocurrencies
Bitcoin has remained flat around $64,000, while Ethereum has edged down by 0.5% to $1,914.
Conclusion
The market is currently navigating through a complex landscape of geopolitical tensions, disappointing earnings, and shifting economic indicators. Investors are advised to stay informed as the situation develops, particularly with the upcoming Federal Reserve decision and its potential impact on market dynamics.