Global Markets July 28: Massive Rotation from the US Tech Sector, Profit Taking in Big Tech, and a 13% Drop for Samsung
Global markets are entering one of the most important days of the month. Investors are massively reducing positions in the tech sector ahead of the US Federal Reserve's decision, while simultaneously taking profits after a rapid rise.
Global markets are entering one of the most important days of the month. Investors are massively reducing positions in the tech sector ahead of the US Federal Reserve's decision, while simultaneously taking profits after the rapid growth of recent weeks. Amid decreasing geopolitical tensions, pressure on the oil market continues, while the dollar maintains strong positions.
Rotation from Big Tech Pressures the US, While Europe Remains Steady
USA: A massive capital rotation is unfolding in the markets. Investors are taking profits in AI industry stocks ahead of reports from Microsoft, Meta, Apple, and Amazon, while also assessing the growing competition from China. As a result, the Dow Jones remains in the green thanks to industrials and financials, while the tech sector drags the indices down.
Europe: European markets appear more resilient than their American counterparts: indices in Germany, France, and the UK show moderate growth amid cheaper energy prices and easing inflationary pressures.
Crash in Asia: KOSPI Plummets Over 10%, Trading Halted
Sell-offs in the Asia-Pacific region have taken on a crash-like character. The South Korean KOSPI lost over 10%, triggering a trading halt (Circuit Breaker). Shares of semiconductor giants Samsung Electronics and SK Hynix fell more than 13%. The Japanese Nikkei 225 dropped nearly 4%, and Chinese exchanges also closed in the red.
Brent Oil Drops to $85, Gold Corrects Around $4,050
Energy: Oil prices continue to decline amid a diplomatic pause between the US and Iran. Brent has fallen to $85 per barrel, while WTI is trading around $82.
Gold: After an impulsive rally, the precious metal has entered a correction and stabilized around $4,050 per troy ounce.
Dollar Holds at 101.5, Bitcoin in the Range of $63–65K
Currencies: The DXY index is holding at annual peaks around 101.5 points. The EUR/USD pair is hovering near 1.14, GBP/USD around 1.33, and USD/JPY is trading around 164. Demand for the dollar remains high ahead of the Fed's decision.
Cryptocurrencies: The crypto market mirrors the dynamics of big tech: BTC is trading in the range of $63,000–65,000, and ETH around $1,900. Notable events in the sector include the Zcash (Ironwood) hard fork and the start of the Rare Evo conference.
Main Event of the Week (Astana Time / GMT+5):
| Date / Time | Region | Event |
|---|---|---|
| July 28–29 | USA | Two-day meeting of the Federal Reserve (FOMC) |
| July 29 (Tomorrow) | USA | Publication of the Fed's rate decision and press conference with management |
Summary: July 28 is marked by caution. The tech sector is under significant pressure, oil continues to decline amid easing geopolitical risks, and the dollar remains stable ahead of the Fed's decision. The main impetus for global markets is expected tomorrow after the publication of the US regulator's interest rate decision and its further forecasts.