Stock Futures Rise Following Fed Decision
On the evening of July 29, 2026, stock futures in the U.S. climbed as investors processed the recent earnings from major tech companies alongside the Federal Reserve’s choice to maintain interest rates.
Futures increased by 158 points, which is about 0.3%, reflecting a positive trend resembling the Dow Jones Industrial Average. Meanwhile, S&P 500 futures were up by 0.4%, and Nasdaq 100 futures saw a rise of 0.7%.
However, during regular trading hours, the Dow Jones Industrial Average experienced a significant drop, falling by 1,153.18 points, or 2.19%. This marked the largest dip for the index since April 2025. The S&P 500 also fell, by 1.52%, while the Nasdaq Composite decreased by 1.74%, ending the day more than 10% below its intraday peak.
In Asian markets, Japan’s Nikkei Stock Average dropped by 0.25%, with the TOPIX declining by 0.59%. The Kospi also fell, down 0.73%, while a small-cap index rose by 0.89% following Wednesday’s sharp sell-off. The Australian benchmark S&P/ASX 200 decreased by 0.26%.
After-hours trading saw shares of Meta Platforms decline by 7% due to weak earnings forecasts. In contrast, Microsoft stock surged by 8%, thanks to significant growth in its Azure division. This contrast illustrates differing strategies in the tech sector, particularly in artificial intelligence.
Stephen Evans, chief investment officer at Pave Finance, commented, “This really reflects two distinct approaches to AI investment. One firm heavily invests and sees profit growth, while the other allows costs to impact its earnings.” He further noted that Microsoft’s results might indicate that apprehensions regarding its growth may have been overstated, especially given recent stock pressures. Meanwhile, Meta’s advertising branch remains robust but needs to enhance cost management and showcase more consistent returns to restore credibility.
Traders were also analyzing the Fed’s decision to keep rates steady, which led to an increase in long-term Treasury yields. The yield on the 30-year U.S. Treasury climbed 10 basis points, hitting over 5.2%, its highest since 2007.
Sameer Samana, head of global equities and real assets at Wells Fargo Investment Institute, mentioned, “The Fed appears patient… they are in a wait-and-see mode, looking to assess economic performance in the coming months.”
Looking ahead to Thursday, attention will shift to weekly jobless claims and the June personal consumption expenditure index. The Dow Jones Consensus estimates annual headline inflation at 3.7%, with a more stable measure, excluding energy and food, expected to rise by 3.3%. The announcement for real GDP for the second quarter is also anticipated in the morning.
It’s a busy week for corporate earnings, with Bristol Myers Squibb scheduled to report earnings before the bell, while Amazon, Apple, and Coinbase are set to release their results after market close.
