US Markets

US equities declined on Wednesday as surging oil prices rattled investors ahead of the Federal Reserve's latest interest rate decision, while persistent weakness in semiconductor stocks dragged on the broader market. The Dow Jones Industrial Average fell 853 points, or 1.6%, and the S&P 500 slipped 0.9%. The Nasdaq Composite also traded lower, pressured by continued selling pressure in chip stocks, which carry significant weight in technology-heavy indices and have been a key driver of market performance this year.

Crude Oil

Crude oil prices surged on Wednesday after US President Donald Trump stated that the United States would respond forcefully to what he characterized as an attempted surprise attack by Iran on American forces in the Middle East. Brent crude futures, the global benchmark, climbed 7.4% to $90.35 per barrel. US West Texas Intermediate (WTI) crude futures also advanced 7.4% to $85.11 per barrel. The sharp rally underscores the sensitivity of energy markets to geopolitical risk in the Middle East, a region that accounts for a substantial share of global oil supply.

US Economic Data

The United States is set to release second-quarter Personal Consumption Expenditures (PCE) data and provisional Gross Domestic Product (GDP) figures at 6:00 PM IST. The prior month's PCE report showed personal consumption expenditures rose 0.7% in May, with personal income also increasing 0.7% during the same period. The PCE index is the Federal Reserve's preferred gauge of inflation, making it a closely watched input for monetary policy decisions. The Q2 provisional GDP data will offer the first estimate of economic growth for the April–June quarter. The previous quarter's GDP growth was reported at 1.6%.

Global Earnings

A large slate of global companies are scheduled to report financial results tomorrow, including Apple, Amazon, Mastercard, Shell, Schneider Electric, AB InBev, Rolls-Royce, BBVA, British American Tobacco, Enel, Sanofi, ING Groep, Lloyds Banking Group, BAE Systems, Ferrari, Societe Generale, London Stock Exchange Group (LSEG), ArcelorMittal, Anglo American, Haleon, Saint-Gobain, BMW, Adidas, Heidelberg Materials, DSM-Firmenich, Stellantis, Renault, Tokyo Electron, Mizuho, Takeda Pharmaceutical, ASE Technology, Delta Electronics, Yum China, Hutchmed, Keppel Corporation, Vale, Emirates Telecommunications, and SABIC.

Q1 Earnings (India)

Major companies scheduled to announce Q1 financial results tomorrow include Bajaj Finance, Tata Steel, Mahindra & Mahindra (M&M), Hyundai Motor India, Exide Industries, Thermax, Pricol, LIC Housing Finance, Indian Railway Finance Corporation (IRFC), National Securities Depository Ltd (NSDL), and ICRA.

US–Iran Conflict

The US military stated on Tuesday that it intercepted an Iranian missile barrage and coordinated with Saudi Arabian forces to strike sites in Iraq that Tehran-backed militias have used to launch attacks in recent days, ending a brief pause in hostilities. US Central Command confirmed that all Iranian missiles launched against American forces in the Middle East were intercepted, adding that they "remain vigilant and at a high state of readiness." In announcing the strikes in Iraq, the US warned that further attacks on American troops or Saudi Arabia's energy infrastructure would risk additional action. The escalation comes amid ongoing international concern about stability in the Strait of Hormuz, through which roughly a fifth of global oil consumption transits.

US Federal Reserve Decision

The US Federal Reserve commenced its two-day monetary policy meeting on July 28, with the Federal Open Market Committee (FOMC) scheduled to announce its interest rate decision on Wednesday, July 29. The decision arrives against a backdrop of rising oil prices and geopolitical tension, factors that influence inflation expectations even as policymakers balance the pace of future rate adjustments.