31/07/2026
Driven by lingering inflation concerns, U.S. long-term Treasury yields have climbed to their highest levels in nearly two decades. Despite a rebound in oil prices, the Federal Reserve kept interest rates unchanged, triggering a sharp decline in U.S. equity markets amid confluent market pressures.
U.S. stocks posted mixed yet broadly weak performances. The S&P 500 fell by 1.5%, dragged down by a sharp slump in the chipmaking sector. The Nasdaq 100 extended its losses, with its cumulative decline from historical highs widening to 11%, officially entering a technical correction. The bond market experienced more drastic volatility, as the yield on the 30-year U.S. Treasury bond hit its highest level since 2007. In the commodities market, Brent crude prices surpassed $90 per barrel.
In terms of individual stock performance, Meta Platforms released disappointing earnings guidance in late trading, further dampening market risk sentiment. Meanwhile, the U.S. market boasted bright spots: Microsoft’s cloud business achieved its fastest growth rate in four years, demonstrating strong operational resilience.
Federal Reserve Chair Kevin Walsh addressed the central bank’s decision to hold interest rates steady. He emphasized that the unchanged policy rate does not imply sluggish policymaking, reiterating the Fed’s commitment to curbing inflationary pressures and stabilizing prices.
Walsh added that financial markets are now positioning themselves more freely based on economic signals. With reduced forward guidance from the Fed, market participants are learning to navigate market challenges independently rather than relying on policy cues. He noted that the tightening of financial conditions since the previous FOMC meeting has been encouraging, reinforcing the Fed’s confidence in its ability to contain inflation.
Market analysts pointed out that the Fed’s lack of explicit forward policy guidance, coupled with Walsh’s acknowledgment of greater market autonomy, has exacerbated volatility in the bond market, ultimately fueling the sharp surge in 30-year Treasury yields.
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