Fed holds rates but bond market sells off as chips drag Nasdaq into correction

The Fed left rates at 3.50%–3.75% in a rare 9–3 split; the 30-year Treasury yield topped 5.20% for the first time since 2007 while the Nasdaq 100 fell 2.06% and oil jumped 6.6%.

Deepakshi

Kristal Research & Marketing team

30 Jul2 min

Key takeaways — AI summary

The Fed held rates at 3.50%–3.75% as expected, but three officials — Logan, Hammack and Kashkari — dissented in favour of a quarter-point hike, the first time three have pushed for higher rates together since 2016; Chair Kevin Warsh gave no roadmap for future moves.
Long-dated bonds sold off after the decision: the 10-year Treasury yield rose about 6 hundredths to 4.667% and the 30-year briefly topped 5.20%, its highest since 2007, while the 2-year yield fell — a steepening the document says is unseen on a Fed day since 1987.
The AI chip trade kept unraveling: the main semiconductor index fell about 5% after SK Hynix posted record profits but missed high expectations; the Nasdaq 100 dropped 2.06% to 27,192 (now over 10% below its record), the S&P 500 slid 1.52% to 7,316 and the Dow lost 2.19% to 51,599.
US crude settled $5.20 higher at $84.46 a barrel (+6.6%) after Iran fired missiles at a US base in Jordan and President Trump vowed to retaliate; gold slipped 0.31% to $4,054 as yields climbed.
Earnings diverged: Microsoft rose about 3% after hours on 43% Azure growth and 30 million paid Copilot seats, GE HealthCare jumped 12.16% on a record $23.9bn backlog, while Meta fell 9.5% and Caterpillar dropped 6.9% on a Baird downgrade.

Generated by Kristal AI · reviewed by the research desk

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