Stocks Fall as Chipmakers Decline, Oil Prices Surge Amid Geopolitical Tensions
U.S. stock indexes fell sharply on July 29, with the S&P 500 hitting a one-month low and the Nasdaq 100 reaching a three-month low amid a selloff in chipmakers and AI infrastructure stocks. The decline was exacerbated by rising geopolitical tensions following Iran's missile attack on a U.S.-linked base in Jordan and President Trump’s threat to retaliate, which pushed crude oil prices up over 7%. Bond yields also rose as investors priced in higher inflation risks. The Federal Reserve left interest rates unchanged after its two-day FOMC meeting with a split vote of 9-3. Investors are now focused on upcoming earnings reports from major tech firms like Microsoft and Meta Platforms, which could provide insight into the profitability of AI investments that have driven much of recent market growth. So far in Q2, S&P 500 companies have exceeded expectations at an impressive rate. Mortgage applications declined for a second week as rates climbed to their highest level in over a year. Meanwhile, diplomatic efforts to reopen the Strait of Hormuz remain stalled amid continued U.S.-Iran tensions.
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Topics: chipmakers geopolitical tensions oil prices stock market