The Prime Daily: 30 July 2026

US markets tumbled Wednesday after the Federal Reserve left interest rates unchanged and amid a sharp escalation in the Middle East. The Dow fell over 1,150 points its worst session in 15 months while the S&P 500 and Nasdaq Composite lost 1.52% and 1.74%, respectively.

Iran fired ballistic missiles at US bases in Jordan, a US-Saudi coalition struck Iran-backed militias in Iraq, and an American-owned tanker docked in Egypt was set ablaze in a suspected drone attack. Oil surged on the news. The rally was reinforced by industry data showing a decline in US crude inventories, reviving inflation concerns just as the Fed’s decision landed.

The FOMC voted 9–3 to hold its benchmark rate at 3.50%–3.75%, with the three dissenters favouring an immediate 25bp hike amid persistent inflation concerns. Chair Kevin Warsh reaffirmed the Fed’s commitment to its 2% inflation target explicitly ruling out any higher “soft target” but his reluctance to signal further tightening despite rising oil prices unsettled investors. Long-end Treasury yields jumped, with the 30-year touching its highest level since 2007.

In earnings, Microsoft rose as much as 8% after-hours on 43% Azure growth and $90 billion in quarterly revenue, with capex guidance held steady. Meta’s revenue climbed 28% year-over-year to $60.8 billion, but a lacklustre forward outlook weighed on the stock despite its relatively attractive valuation.

In Asia, a steep sell-off in South Korean equities driven by weak chip earnings and heavy retail selling in leveraged single-stock products wiped out trillions of won in value in the last few sessions. Finance Minister Koo Yun-cheol convened an emergency meeting, and the government moved to cap individual retail exposure to single-stock leveraged ETFs at 20% of financial assets while raising trading costs on those products. Korean markets surged on open today, though now rapidly giving back their gains.

The Indian rupee appreciated for the fourth straight session, gaining 20 paise to close at 95.65, supported by strong regional currencies, a softer dollar index and the sharp rise in domestic equities.

Nifty staged a strong comeback on the first day of the August series, surging 264 points to close at 24,250.  A sustained move above this zone could open the door for further upside. On the lower side, immediate support has now shifted higher to the 24,000–24,050 band, and as long as Nifty holds above this area, the short-term bias is likely to remain positive.