Mixed Tech Earnings and Fed Hold Drive Market Volatility

U.S. stock markets experienced significant volatility on July 31, 2026, as investors reacted to divergent earnings from technology giants and a Federal Reserve interest rate decision. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all finished the day with modest gains, though the Philadelphia Semiconductor Index suffered one of its worst monthly declines since 2008, falling between 18% and 20%.

Amazon.com saw shares surge between 13.8% and 15% after reporting quarterly profits and revenue growth that exceeded expectations, driven by its cloud business. In contrast, Apple shares fell over 9% due to disappointing services revenue and warnings that a supply crunch in AI-related components would hinder growth. Microsoft previously contributed to a late-month recovery by recording its largest single-day market value increase on record.

The Federal Reserve System maintained benchmark interest rates, though Chair Kevin Warsh faced criticism from economists regarding the bank's credibility in hitting inflation targets. While Warsh pledged to return inflation to 2%, he declined to provide specific hints on future rate actions. President Donald Trump has lobbied for lower rates amid these pressures. External volatility was further compounded by Brent crude rising to $88.68 a barrel due to ongoing conflict involving Iran, alongside rising bond yields.