Wall Street closes down sharply after Fed keeps rates unchanged - NBC News

What the report says

NBC News, citing Reuters, reported that U.S. stocks closed sharply lower on Wednesday, July 29, 2026, after the Federal Reserve left its benchmark interest rate unchanged at 3.50% to 3.75%. The decision had been widely expected, but three of the 12 Federal Open Market Committee members dissented in favor of a quarter-point increase. The report said investors were focused on whether persistent inflation and higher fuel and food costs tied to the Middle East war could push the Fed toward a September hike.

The selloff was led by technology and AI-linked shares. The Nasdaq 100 fell 2.1% and was reported to be 11% below its June record, while the broader Nasdaq Composite was about 9% off its June high. The S&P 500 dropped 1.52% to 7,316.15, the Nasdaq Composite lost 1.74% to 24,442.94, and the Dow Jones Industrial Average declined 2.19% to 51,594.14. Eight of 11 S&P 500 sectors fell, with industrials and information technology among the weakest.

Concerns about heavy artificial intelligence spending remained central to the market reaction. Meta fell 4% in after-hours trading after projecting 2026 capital expenditures of $130 billion to $145 billion, above the low end of its previous range. Microsoft gained slightly after reporting stronger-than-expected cloud revenue growth. Chip-related sentiment weakened after SK Hynix’s profit increase disappointed elevated expectations, while Vertiv fell 17% after missing revenue estimates.

Other corporate results were mixed: Ford rose after lifting its annual profit outlook, Visa gained after beating profit estimates, and Lennox sank after cutting its forecast. The report noted that declining shares outnumbered advancers in the S&P 500, with trading volume slightly above the recent average.