Market Summary - July 29, 2026

US OPEN: Wall Street Holds Its Breath Ahead of Fed Decision and Tech Giant Earnings

Key Takeaways

• American indices opened mixed, losing ground in the first hour of trading.
• Investors are awaiting the Federal Open Market Committee (FOMC) decision and Kevin Warsh's conference.
• Microsoft (MSFT) and Meta Platforms (META) are set to release earnings today after the session.
• Tech stocks are under pressure following a sell-off driven by weakening momentum, with Korea's KOSPI index down 6% due to memory companies.

Market Situation and Key Indices

American stock markets are preparing for a significant trading session, with major indices opening negatively. Investors are focused on two key catalysts for volatility:

1. The Federal Reserve's interest rate decision at 8:00 PM Polish time (2:00 PM ET), followed by a conference with Chairman Kevin Warsh.
2. The earnings reports from Microsoft and Meta Platforms after the market closes, which could influence the short- and medium-term trends in the AI sector.

Current Index Performance

• S&P 500 (US500): Futures contracts are down about 0.8%, with the index attempting to stabilize but dropping to its lowest levels since late June.
• Nasdaq 100 (US100): The technology benchmark is down 1.4%, influenced by significant declines in South Korea's KOSPI.
• Dow Jones (US30): The blue-chip index is down about 1.4%, affected by weak forecasts from industrial and consumer sector companies.
• Russell 2000 (US2000): The small-cap index is down 1.25%.

Technical Analysis

Investors are closely monitoring the Semiconductor Index (SOX), which is nearing critical valuation support. The forward P/E ratio has decreased from nearly 28 to 19.8, a level that has historically acted as strong support. The Nasdaq 100 is currently testing this support level, and a positive surprise in earnings from major tech companies could lead to a rebound.

Key Company Information

• Avis Budget (CAR): Shares down nearly 11.8% after missing earnings expectations.
• Procter & Gamble (PG): Down 2.6% due to conservative forecasts amid consumer spending pressures.
• Vertiv Holdings (VRT): Down 13.0% as Q2 revenues fell short of estimates.
• Humana (HUM): Down 7% despite better-than-expected profits, as full-year forecasts remained unchanged.
• Caterpillar (CAT): Down 4.8% after a downgrade to "Neutral" by analysts.
• GE Healthcare (GEHC): Up 12% after beating earnings estimates.
• Teradyne (TER): Initially up over 10% but later reduced to a 5% gain following strong financial results.
• Microsoft (MSFT) and Meta (META): Trading close to previous closing levels ahead of earnings releases.

Conclusion

The market is in a state of anticipation as investors await critical economic indicators and earnings reports that could shape the future direction of the indices, particularly in the technology sector.