Post-Market Recap — Wednesday, July 29, 2026

U.S. stocks finished lower Wednesday after the Federal Reserve held rates steady and investors continued trimming exposure to AI-related semiconductor stocks. The Dow fell about 1.3%, the S&P 500 slipped roughly 0.2%, and the Nasdaq ended near flat.

The Fed kept its target rate at 3.50%–3.75%, as expected, but three policymakers dissented in favor of a quarter-point increase. The split reinforced concerns about inflation, particularly with energy prices elevated. Treasury yields were mixed, with the two-year near 4.28% and the 10-year around 4.64%, while the dollar weakened modestly.

Semiconductors remained the weakest group. The PHLX Semiconductor Index fell more than 2% as strong results from SK Hynix still failed to meet elevated expectations, while Vertiv dropped after missing revenue estimates. The moves added to concerns about AI spending, valuations, and the timing of returns on infrastructure investment.

Elsewhere, Ford rallied after raising its outlook, Visa gained on better-than-expected profit, and Lennox fell after cutting guidance. Oil jumped roughly 7% as renewed Middle East tensions revived supply concerns, adding pressure to inflation expectations. Gold slipped as higher yields outweighed safe-haven demand.

What traders should watch next: Thursday’s PCE inflation report, the reaction to Microsoft and Meta earnings, and whether higher oil prices push Treasury yields further upward.