Market Overview July 29: Calm Before the Fed's Verdict, Pressure on the AI Sector, and Stabilization of Brent at $85
Global financial markets are approaching the key event of the month — the decision of the U.S. Federal Reserve on interest rates. Investors are taking a wait-and-see approach while continuing to reduce investments in technology.
Global financial markets are approaching the key event of the month — the decision of the U.S. Federal Reserve on interest rates. Investors are taking a wait-and-see approach while continuing to reduce investments in the technology sector amid doubts about the profitability of artificial intelligence projects. Volatility in global markets remains high.
Tech Sector Under Pressure from AI ROI: U.S. Trades Mixed
U.S. and Regions: In the U.S., the Dow Jones continues to lead due to defensive and industrial sectors, while Nasdaq and chipmakers remain under pressure. The main factor is investor skepticism regarding the timelines for financial returns from large capital investments in AI infrastructure. In Asia, a sell-off of semiconductor manufacturers (including Samsung and SK Hynix) continues, while European exchanges are performing better due to a lower share of big tech.
Oil Seeks Balance in the $84–87 Range, Gold Consolidates
Energy Resources: After a sharp decline at the beginning of the week, oil prices are trying to stabilize: Brent is holding in the $84–87 per barrel range, WTI is in the $81–84 range. The reduction of geopolitical tensions between the U.S. and Iran continues to restrain prices.
Precious Metals: Gold fluctuates around $4,030–4,100 per troy ounce, firmly maintaining its status as the main safe haven ahead of the Fed's verdict announcement.
DXY Holds Highs, Bitcoin Stalls at $64,000
Currency Market: The DXY index remains at highs. The EUR/USD pair is trapped in the 1.1390–1.1410 range, GBP/USD is trading around 1.3310, and USD/JPY is near 163.85. Trading activity is minimal ahead of the evening regulator statements.
Cryptocurrencies: Digital assets mirror the decline of big tech. Bitcoin is consolidating in a narrow range of $63,700–64,000, while Ethereum is holding below $1,900. Amid the anticipation of the Fed's decision, liquidation volumes of margin positions have increased.
Key Reports of the Day: Microsoft, Meta Platforms, Airbus, and UBS
The main focal event in the corporate sector is the reports from Microsoft and Meta Platforms right after the close of the main session in the U.S. In Europe, the market is analyzing the results of Airbus, AstraZeneca, and UBS. The financial figures of the IT giants will determine the dynamics of the technology sector for the remainder of the week.
Economic Calendar (Astana Time / GMT+5):
| Time (GMT+5) | Country | Event / Publication |
|---|---|---|
| July 30, 00:00 | U.S. | Fed's Interest Rate Decision (pause expected at 3.50–3.75%) |
| July 30, 00:30 | U.S. | Press conference of new Fed Chair Kevin Warsh |
Conclusion: July 29 is marked by maximum caution. Investors are reducing positions in the technology sector, oil remains under pressure after the easing of geopolitical risks, and the dollar maintains stability in anticipation of the Fed's decision. The outcomes of the American regulator's meeting and comments from its leadership will be the main driver of global financial markets in the coming hours.