The article discusses the current state of the U.S. stock market as expectations build around an upcoming Federal Reserve interest rate decision and earnings reports from Meta and Microsoft. Futures for major stock indices are steady, after mixed performances on Wall Street. Key highlights include anxiety over escalating tensions in the Middle East impacting oil prices and concerns about the profitability of tech giants investing heavily in AI, leading to a decline in semiconductor stocks. Analysts are divided over the Fed's potential rate hike, with a significant probability of maintaining the current rate. Furthermore, Meta anticipates significant capital expenditures, while Microsoft is facing challenges in its AI partnerships, particularly regarding its Azure services.

Fed decision ahead; Meta, Microsoft to report - what’s moving markets

Author Scott Kanowsky

Economy

Published07/29/2026, 03:38 AM

View all comments (5)5

Fed decision ahead; Meta, Microsoft to report - what’s moving markets

View all comments (5)5

In this article:

Investing.com - Futures linked to the main U.S. stock indices hover around the flatline ahead of a crucial day that will feature a much-anticipated Federal Reserve interest rate announcement and earnings from big artificial intelligence spenders Meta Platforms and Microsoft. Tensions threaten to escalate in the Middle East after the U.S. and Iran exchange a fresh barrage of strikes, sending oil prices higher once again.

Get more market insights with InvestingPro - now 60% off

1. Futures stabilize

U.S. stock futures steadied on Wednesday, as investors geared up for what analysts have called an "unusually uncertain" Federal Reserve interest rate decision and an opening batch of this week’s critical technology sector earnings.

By 03:20 ET (07:20 GMT), the Dow futures contract and Nasdaq futures were mostly unchanged, while S&P 500 futures had edged up by 13 points, or 0.2%.

The main averages on Wall Street were mixed to end the prior session. The blue-chip Dow Jones Industrial Average and benchmark S&P 500 finished higher by 1.03% and 0.21%, respectively, while the tech-heavy Nasdaq Composite dropped by 0.22%.

Weighing on the Nasdaq, in particular, was a rotation out of the chip stocks which provide the processors underpinning artificial intelligence systems. The Philadelphia Semiconductor Index, a tracker of the industry, sank for its fourth straight day, touching its lowest level since May in the process.

Partly contributing to Tuesday’s downturn in semiconductor stocks were reports of emerging Chinese competition facing U.S. chipmakers, which came on the heels of Alphabet’s announcement last week that the Google-owner was lifting its capex budget. Adding to the downbeat sentiment was South Korea’s SK Hynix, which posted record profit that failed to live up to sky-high expectations.

Markets have grown anxious over when megacap tech players’ plans for billions of dollars worth of expenditures on AI infrastructure like data centers and chips will translate into consistent profits.

"The share prices of some of the global tech giants at the heart of the AI revolution have come under pressure amid a variety of concerns, raising the question of whether the wheels are falling off the AI stock market train," said John Higgins, Chief Economic Adviser at Capital Economics, in a note.

2. Fed decision looms large

Meanwhile, attention is turning to the Fed’s upcoming policy decision, which is due to be unveiled after the conclusion of its two-day gathering later today.

Fed officials have been gauging the impact of recent oil market volatility, as well as the AI spending spree, on inflation. June’s consumer price index came in softer than anticipated, but renewed fighting in the Middle East caused prices to briefly crest $100 a barrel last week, while there has been little sign that big tech firms are backing away from their soaring AI investments.

At the same time, the U.S. labor market, the other pillar of the Fed’s mandate, has been stuck in a period of low hiring and muted dismissals.

In theory, raising rates can help to corral inflation, albeit at the risk of denting the jobs picture and the wider economy.

Analysts at BofA Securities argued that July’s Fed decision may come down to Chair Kevin Warsh, an appointee of President Donald Trump who is overseeing just his second meeting at the helm of the central bank.

"Warsh faces a difficult choice. Not hiking could challenge the Fed’s credibility on inflation. But raising rates would go against his framework of looking through supply shocks," the analysts said.

In the hours before the decision, there was a roughly 70% chance that the Fed will keep rates steady at 3.5% to 3.75%, and a just under one-in-three possibility of a hike, according to CME FedWatch. Don’t expect much in the way of forward guidance, either: Warsh has made clear that he does not intend to give markets a clear roadmap on rates.

3. Meta Platforms to report

Investors will also have to digest a raft of tech sector earnings this week, beginning with Facebook-parent Meta Platforms and software giant Microsoft after the closing bell on Wall Street on Wednesday.

For Meta, the quarterly returns will provide the latest test of whether the firm’s AI investments are likely to pay off.

The company increased its annual capital spending forecast in April, projecting capex this year of between $125 billion and $145 billion, up from a prior forecast of $115 billion to $135 billion.

Meta also warned of the blowback from legal and regulatory challenges in the European and the U.S., saying a "material loss" could come from heightened scrutiny on "youth-related issues" and "additional trials scheduled for this year."

4. Microsoft earnings ahead

Microsoft has also targeted record capital spending of $190 billion in its 2026 fiscal year, further underlining how intense the race to harness and monetize has become among big-name tech groups.

But worries have arisen around Microsoft’s reliance on AI partners such as ChatGPT-maker OpenAI, as well as seemingly tepid adoption of the firm’s Copilot 365 AI assistant.

Revenue at Microsoft’s all-important Azure cloud unit and other related services, where investors are especially hoping to see the AI investments bear fruit, is anticipated to have grown between 39% and 40% in constant currency in the fourth quarter.

However, even if those goals be reached, Azure’s growth would be far less than that of rival Google’s cloud business.

5. Brent climbs after U.S., Iran exchange fresh attacks

Oil prices once again pushed higher on Wednesday, after the U.S. and Saudi Arabia launched joint strikes against Iran-backed groups in Iraq.

The bombardments came shortly after the interception of a barrage of Iranian ballistic missiles targeting U.S. forces in Jordan, ending a multi-day pause in fighting in the Middle East which had contributed to a sharp decline in crude prices this week.

Iran also rejected a proposal with Oman that would have divided control over the Strait of Hormuz, potentially further imperiling the chances for negotiations between Tehran and Washington.

By 03:17 ET (07:17 GMT), Brent crude futures, the global oil benchmark, had gained 3.5% to $87.01 a barrel, while U.S. West Texas Intermediate crude futures had increased by 3.8% to $82.27 a barrel.

Fed decision ahead; Meta, Microsoft to report - what’s moving markets

View all comments (5)5

Latest comments

Post

Comment Guidelines

Rubbish. Fed hikes stocks are smashed …no hike and Bonds smashed

Reply20

Bigly rally today. Bobby Lee knows. Warsh is going to play the dove in hawk's clothing. Time to short after Apple earnings tomorrow. Loaded up on oil and silver yesterday. Sold all my SOXS as well. You made a gambler out of this boy. Let's play.

Reply12

Bobby Brainworm is a loyal MAGA Cultist who gets off on annoying others......truly truly insufferable scum

Reply21

Canada NotUSAIHe's cute

Reply00

Show all comments

Trade With A Regulated Broker

Indices

Commodities

Bonds

Stocks

US 30

52,081.40

-666.1

-1.26%

US 500

7,404.70

-24.5

-0.33%

Dow Jones

52,085.59

-661.73

-1.25%

S&P 500

7,404.66

-24.56

-0.33%

Nasdaq

24,837.68

-39.23

-0.16%

S&P 500 VIX

18.66

+0.45

+2.47%

Dollar Index

100.995

-0.271

-0.27%

Crude Oil WTI Futures

84.70

+5.44

+6.86%

Brent Oil Futures

87.96

+5.88

+7.16%

Natural Gas Futures

2.732

+0.031

+1.15%

Gold Futures

4,068.90

+30.20

+0.75%

Silver Futures

58.745

+1.216

+2.11%

Copper Futures

6.3923

+0.0328

+0.52%

US Soybeans Futures

1,191.88

-28.13

-2.31%

U.S. 10Y

4.627

+0.023

+0.50%

U.S. 30Y

5.122

+0.026

+0.51%

U.S. 5Y

4.405

+0.044

+1.01%

U.S. 3M

3.857

+0.003

+0.08%

US 10Y T-Note Futures

108.56

-0.25

-0.23%

Euro Bund Futures

124.69

-0.44

-0.35%

10-2 Yield Spread

31.32

+4.15

+15.27%

AAPL

344.18

+4.10

+1.20%

NVDA

193.02

-3.99

-2.03%

GOOGL

339.69

+5.98

+1.79%

TSLA

303.92

-3.52

-1.14%

AMZN

231.78

+0.92

+0.40%

NFLX

73.56

+1.17

+1.61%

Name	Last	Chg. %	Vol.
GRMN	298.61	+17.73%	2.09M
CTSH	56.65	+12.60%	9.05M
GEHC	71.36	+11.31%	9.96M
STX	800.25	+7.09%	6.44M
EPAM	107.79	+7.36%	1.15M
IT	166.68	+6.96%	718.04K
DDOG	267.69	+6.70%	2.37M

Name	Last	Chg. %	Vol.
MAS	73.79	-9.58%	6.07M
KLAC	175.35	-8.10%	11.67M
BG	108.50	-7.56%	1.46M
FTV	59.38	-7.35%	3.50M
HUM	360.59	-7.23%	2.21M
CAT	790.17	-6.03%	3.55M
PPG	112.29	-5.65%	2.10M

Trending Stocks

Name	Last	Chg. %	Vol.
MU	774.06	-5.66%	39.74M
SNDK	1,061.92	-3.12%	15.32M
SKHY	129.30	-0.67%	44.50M
SPCX	115.31	-0.94%	33.04M
NVDA	193.02	-2.03%	76.21M

ProPicks AI

AI-powered stock picks with a proven track record to beat the S&P 500.

Tech Titans

Stocks in this Strategy

aaaa aaaaa aaaa a

Unlock Strategy

Top Value Stocks

Stocks in this Strategy

aaaa aaaaa aaaa a

Unlock Strategy

Best of Buffett

Stocks in this Strategy

aaaa aaaaa aaaa a

Unlock Strategy

Energy Elite

Stocks in this Strategy

aaaa aaaaa aaaa a

Unlock Strategy

Financial Fortresses

Stocks in this Strategy

aaaa aaaaa aaaa a

Unlock Strategy

Quality Compounders

Stocks in this Strategy

aaaa aaaaa aaaa a

Unlock Strategy

Small-Cap Sprinters

Stocks in this Strategy

aaaa aaaaa aaaa a

Unlock Strategy

Healthcare Heroes

Stocks in this Strategy

aaaa aaaaa aaaa a

Unlock Strategy

Beat the S&P 500

Stocks in this Strategy

aaaa aaaaa aaaa a

Unlock Strategy

Dominate the Dow

Stocks in this Strategy

aaaa aaaaa aaaa a

Unlock Strategy

Mid-Cap Movers

Stocks in this Strategy

aaaa aaaaa aaaa a

Unlock Strategy

Mexican Stock Exchange Leaders

Stocks in this Strategy

aaaa aaaaa aaaa a

Unlock Strategy

Best Brazilian Stocks

Stocks in this Strategy

aaaa aaaaa aaaa a

Unlock Strategy

Italian Market Elite

Stocks in this Strategy

aaaa aaaaa aaaa a

Unlock Strategy

Alpha Germany Select

Stocks in this Strategy

aaaa aaaaa aaaa a

Unlock Strategy

Comments

Post

Comment Guidelines

Tools

Calendars

Economic Calendar Earnings Calendar Holiday Calendar

US Economy

Fed Rate Monitor Tool US Treasury Yield Curve

More Tools

Stock Screener Currency Converter

Markets

Ask WarrenAI New

Stocks Picked by AI

Watchlist

Alerts

Top Brokers New

Breaking News

Tools

Install Our AppScan QR code to install app

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.

Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.

Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.

It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.

Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Read Original at Investing.com →