US Fed Holds Rates as Markets Slip, Vietnam Stocks React

The U.S. Federal Reserve left its target interest rate unchanged at 3.5%‑3.75% on July 29, ending a two‑day policy meeting. The decision sparked a sharp sell‑off on Wall Street, with the Dow Jones Industrial Average falling 2.2%, the S&P 500 down 1.5% and the Nasdaq Composite dropping 1.7%. The U.S. dollar index slipped about 1% to the 100‑level, while oil prices surged amid renewed Middle‑East tensions—Brent rose 7.9% to $90.74 per barrel and U.S. WTI jumped 6.6% to $84.46. Gold prices gained 1.9% to $4,102 per ounce.

In Vietnam, the VN‑Index lost more than 200 points after a recent peak, and investors are closely watching the Fed outcome. CME Group’s FedWatch tool shows the market now assigns a 36.3% probability to a 0.25‑point rate hike at this meeting, up from 16% a week earlier, and an 81% chance of a hike in September. Analysts cite Fed board member Kevin Warsh’s departure from forward guidance as a source of uncertainty. Nguyen Thế Minh of An Bình Securities warns that any Fed move will quickly affect Vietnam through exchange‑rate shifts, foreign‑capital flows and local interest‑rate conditions.