U.S. Stock Markets Drop Over 1,100 Points Amid AI Sell‑Off and Geopolitical Tensions

On July 29, 2026, U.S. equity markets suffered a sharp sell‑off. The Dow Jones Industrial Average fell more than 1,100 points (about 2.2%), marking one of the largest single‑day point declines in months. The S&P 500 and Nasdaq Composite also posted notable losses, with technology and semiconductor stocks hit hardest.

The decline was driven by a retreat in artificial‑intelligence‑related shares and a sudden surge in crude‑oil prices after President Donald Trump threatened military action against Iran. The oil spike lifted energy stocks while prompting broader risk‑off sentiment ahead of a scheduled Federal Reserve policy decision. Traders shifted toward defensive and commodity‑linked assets as volatility rose across major exchanges.