Asian stocks showed caution as the Israel-Iran truce held and Fed Chair Powell offered balanced rate cut views. Middle East tensions eased, and Powell’s flexible tone boosted equities. While the Fed remains patient, lower inflation could prompt earlier rate cuts, with markets pricing in two cuts by the end of 2025. Trump’s stance on Iranian oil also surprised markets.
US stocks: US market closes down sharply after Fed holds rates unchanged
Wall Street experienced a sharp decline as the Federal Reserve maintained interest rates. AI-related chip stocks also saw further losses ahead of key earnings reports.
July 29, 2026