--- title: "Fed Holds Rates Steady but Three Dissents Favor a Hike; Dow Plunges Over 800 Points" type: "News" locale: "en" url: "https://longbridge.com/en/news/294243634.md" description: "The Fed held rates at 3.5%-3.75% in a 9-3 vote, with three regional presidents dissenting in favor of a hike. Middle East tensions sent oil surging over 7%, while tech stocks came under broad pressure." datetime: "2026-07-29T18:27:18.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294243634.md) - [en](https://longbridge.com/en/news/294243634.md) - [zh-HK](https://longbridge.com/zh-HK/news/294243634.md) --- # Fed Holds Rates Steady but Three Dissents Favor a Hike; Dow Plunges Over 800 Points U.S. stocks tumbled on July 29 as all three major indexes declined. The Federal Reserve held its July FOMC meeting and voted **9 to 3** to keep the benchmark rate unchanged at **3.5%-3.75%**, but three regional Fed presidents dissented in favor of a rate hike, sending a decidedly hawkish signal. At the time of writing, the Dow had at one point dropped more than **800 points**, the Nasdaq fell over **1%**, and the S&P 500 also moved lower. Across the board, the tech sector faced broad selling pressure, with semiconductor and AI-related stocks leading the decline, as markets turned their attention to after-hours earnings from Meta and Microsoft. Energy stocks bucked the trend, lifted by a surge in crude prices as escalating Middle East geopolitical tensions drove international oil prices up more than **7%**. In the consumer defensive space, Coca-Cola hit an all-time high, defying the broader market weakness. **Fed Holds Rates Steady as Three Policymakers Vote for a Hike** The Federal Reserve voted 9 to 3 to hold the federal funds rate at 3.5%-3.75%, with Cleveland Fed President Hammack, Dallas Fed President Logan, and a third regional bank president casting dissenting votes in favor of a rate increase due to persistent inflation concerns. This marked the second FOMC meeting under Chair Kevin Warsh, and the statement once again omitted forward guidance, focusing instead squarely on prevailing economic conditions. The statement emphasized that the economy continues to expand at a solid pace with unemployment remaining stable, despite geopolitical uncertainty. JPMorgan had previously noted that a hold decision would be the most favorable outcome for equities, while a surprise rate hike could trigger sharp volatility. **Tech Stocks Slide Broadly; Nvidia, TSMC Among Hardest Hit** As of the time of writing, Nvidia (NVDA) moved lower, while TSMC (TSM) declined more than **3%**. On the news front, Google, Amazon, and Nvidia ranked among the top ten most-shorted stocks for 2026, while Microsoft (MSFT) saw its short interest reach the highest level since 2015, with approximately 92 million shares sold short. Markets are increasingly concerned about the return prospects for the massive capital expenditures being poured into AI. In addition, Meta and Microsoft are set to report earnings after the close, with analysts expecting Meta (META) to post earnings per share of $7.22 on revenue of $60.17 billion; for Microsoft, market focus remains on Azure growth and AI capex guidance. **Middle East Tensions Escalate; Oil Prices Surge Over 7%** Iran fired missiles at a U.S. military base, prompting President Trump to threaten retaliation, sharply escalating Middle East geopolitical tensions and sending international oil prices soaring more than **7%**. Energy stocks rallied against the tide, while markets grew increasingly concerned that sustained high oil prices would exacerbate inflationary pressures and further constrain the Fed's monetary policy flexibility. **Tesla Breaks Below $300, Hitting a One-Year Low** Tesla (TSLA) fell below the **$300** mark intraday, reaching its lowest level in nearly a year. Multiple banks downgraded their price targets following the company's Q2 earnings report, as Tesla reported negative free cash flow amid heavy capital expenditure plans, including the production of Optimus robots by the end of 2026. From a technical standpoint, the stock has already broken through key support levels. Elsewhere, Coca-Cola (KO) bucked the trend to hit an all-time high after delivering a strong Q2 earnings report; Berkshire Hathaway's stake has gained more than $5 billion in value since Q1. Ford Motor (F) also advanced against the broader market after raising its profit forecast. ### Related Stocks - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [TSM.US](https://longbridge.com/en/quote/TSM.US.md) - [TSLA.US](https://longbridge.com/en/quote/TSLA.US.md) - [META.US](https://longbridge.com/en/quote/META.US.md) - [MSFT.US](https://longbridge.com/en/quote/MSFT.US.md) - [KO.US](https://longbridge.com/en/quote/KO.US.md) - [F.US](https://longbridge.com/en/quote/F.US.md) ## Related News & Research - [Meta's future AI data center lease obligations swell to over a quarter trillion dollars](https://longbridge.com/en/news/294389887.md) - [Meta Stock: Is Wall Street Bullish or Bearish?](https://longbridge.com/en/news/294176785.md) - [Meta Stock’s Free Cash Flow Just Sent Wall Street a Warning](https://longbridge.com/en/news/294409267.md) - [Here Is Why Newsmax's Meta Partnership Could Accelerate the Path to Profitability for NMAX Stock.](https://longbridge.com/en/news/294587781.md) - [Ahead of Meta Earnings, Here's What Barchart Data Says Comes Next for META Stock](https://longbridge.com/en/news/294068831.md)