Hawkish Fed split and oil surge send Dow plunging 1,100 points

Fed holds rates but three officials dissent, warning on inflation The Federal Reserve left its benchmark rate unchanged but saw a rare 9-3 split, with Cleveland, Dallas, and Minneapolis Fed presidents voting for a hike. Chair Kevin Warsh's hawkish press conference sent the 30-year Treasury yield to a 19-year high of 5.21%, triggering a sharp selloff in equities that deepened into the close. 12345

Brent crude leaps 7% as Trump threatens new Iran strikes Oil prices reversed course sharply, surging after President Donald Trump warned of a severe response to Iranian actions, ending a brief truce-driven calm. Brent crude settled at $88.09, adding to inflationary pressure that complicates the Fed's path as energy costs spike. 567

Nasdaq enters correction territory as AI chip rout deepens The tech-heavy index closed at 24,443, down nearly 10% from its June all-time high, dragged by a brutal selloff in semiconductor stocks. The Philadelphia Semiconductor Index tumbled over 5%, extending the painful unwind of the AI trade. 257

Microsoft shares surge 8% on strong cloud and AI revenue The software giant reported earnings of $4.81 per share on $90 billion in revenue, surpassing analyst estimates thanks to 43% growth in Azure cloud services. CEO Satya Nadella highlighted strong Copilot adoption, while the company kept capital spending steady, offering a relief rally for tech investors. 89

Meta Platforms sinks after hours on profit drop, higher capex Meta Platforms reported a decline in second-quarter profit as legal expenses weighed on the bottom line, while management flagged higher-than-expected capital spending for 2026. The cautious tone added to Wall Street's growing unease over the returns on massive AI investments, sending shares down roughly 7% in extended trading. 710