US Stock Markets Reverse Course After Fed Dissent and Strong Microsoft Earnings

On July 29, US equity indexes posted their worst session in weeks as a split Federal Reserve vote, renewed Middle‑East fighting and worries over an AI slowdown weighed on investors. The Dow Jones fell 2.2%, the S&P 500 slipped 1.5% and the Nasdaq dropped 1.7%. The Fed kept rates steady but three committee members urged further hikes, pushing Treasury yields higher and pressuring growth‑oriented tech stocks. Semiconductor shares continued to slide and oil prices rose above US$90 a barrel amid the geopolitical flare‑up.

The following day, July 30, the market rebounded sharply. The Dow gained 1.2%, the S&P 500 rose 1.7% and the Nasdaq surged 2.8% as investors returned to technology names. Microsoft led the rally, jumping more than 15% after reporting Azure cloud revenue exceeding US$100 billion annually, a milestone that reinforced confidence in AI‑related spending. In contrast, Meta Platforms fell about 8% after missing earnings expectations. Inflation data also showed cooling pressure, with the Fed’s preferred PCE index easing in June. The mixed earnings and data drove a swift shift from the previous day's sell‑off to a tentative recovery.