Stocks Rebound Early as Investors Digest Earnings
July 30, 2026
Stocks rebounded in early trading and Treasury yields hit long-term highs as investors digested the Fed meeting and earnings from Microsoft and Meta. Q2 GDP missed estimates.
Published as of: July 30, 2026, 9:14 a.m. ET
| The markets | Last price | Change | % change |
|---|---|---|---|
| S&P 500® Index | 7,316.15 | -112.63 | -1.52% |
| Dow Jones Industrial Average® | 51,594.14 | -1,153.18 | -2.19% |
| Nasdaq Composite® | 24,442.94 | -433.97 | -1.74% |
| 10-year Treasury yield | 4.68% | +0.06 | -- |
| U.S. Dollar Index | 100.63 | -0.25 | -0.25% |
| Cboe Volatility Index® | 19.14 | -1.52 | -7.45% |
| WTI Crude Oil | $84.00 | -$0.46 | -0.54% |
| Bitcoin | $64,880 | +$1,340 | +2.11% |
(Thursday market open) Stocks rebounded from yesterday's selloff in early trading and Treasury yields rose to long-term highs as investors digested the Federal Reserve meeting and earnings from Microsoft (MSFT) and Meta (META). Economic growth slowed to 1.5% in the second quarter, according to the first official estimate, but consumer spending was a bright spot.
June's headline Personal Consumption Expenditure (PCE) price index decreased 0.1%, while core PCE that excludes volatile food and energy prices rose 0.1%. Analysts had expected a 0.1% pullback in the headline number but a 0.2% increase in the core reading. Annual headline and core PCE were 3.7% and 3.3%, respectively. The earnings calendar is busy after the close, with Amazon (AMZN) and Apple (AAPL) taking their turn. Earlier this week, the latter edged past Magnificent Seven peer Nvidia (NVDA) to become the world's most valuable public company.
Stocks were all over the map on Wednesday, starting the day moderately lower, initially bouncing higher in the immediate aftermath of the Fed meeting, and then turning sharply south into the close. The Dow slipped almost 2.2%, marking its worst single day decline since the Liberation Day selling in April 2025. The S&P ended the day down 1.5%, and the Nasdaq shed 1.7%, officially entering correction territory as the tech-laden index has falling more than 10% from its early June all-time high. Analysts attributed the sudden losses to concerns that the Fed isn't doing enough to combat inflation.
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Three things to watch
- GDP growth slows in second quarter: The U.S. economy grew at a slower-than-expected pace during the second quarter, according to gross domestic product data released today by the Bureau of Economic Analysis. GDP grew at an annual rate of 1.5% during the quarter versus a consensus estimate of 2.1%. "That's a pretty sizable miss, though it is a first estimate, which can be volatile," said my colleague Alex Coffey, senior trading and derivatives strategist at Schwab. The result marked a deceleration from growth of 2.1% during the first quarter. The biggest contributors to growth during the second quarter were consumer spending, business investment, and exports. Consumer spending was a bright spot, rising 3.2% in the second quarter, accelerating from growth of 0.5% during the previous quarter, with spending on both goods and services rising. Coffey said the spending figures showed that despite higher gas prices during part of the second quarter, consumers "powered through," which is important because consumer spending accounts for about two-thirds of the economy.
- Fed decision drew dissent: The Federal Reserve left interest rates unchanged at 3.5% to 3.75%, as widely expected, but three members voted in favor of a quarter-point rate hike. The 9-3 split will likely fuel more speculation about the Fed's next move, especially with oil prices still elevated and inflationary pressures holding firm. In the post-meeting press conference, Fed Chair Kevin Warsh said, "decisions by this committee matter a great deal, and where necessary and appropriate, we will not hesitate to act," also noting that the Fed is focused on "understanding underlying inflation amid shocks," including the degree to which those shocks will impact inflation. The central bank now has until its September meeting to monitor how inflation data—including today's PCE release—is evolving. Shortly after the decision, the CME FedWatch Tool reflected a 54.2% chance of a rate hike at the September 16 FOMC meeting. This was down from 78.8% on Wednesday morning, despite the three vocal dissenters.
- A new tariff regime quietly launches: A new tariff plan took effect July 24 as the Trump administration's temporary 10% global tariff expired after 150 days. That earlier tariff was introduced in February after the Supreme Court invalidated the administration's original emergency-powers tariff strategy. The replacement tariffs are anchored by levies of 10% to 12.5% on imports from 60 economies that together account for roughly 99.4% of all U.S. imports. The new regime grew out of an investigation that concluded many U.S. trading partners had failed to adequately address issues of forced labor. Additional or higher duties may still emerge with other legal justifications; on July 20, Trump announced 50% tariffs on certain goods from Canada and has threatened Brazil and the EU with steeper tariffs under different rationales. The change is largely a shift in legal reasoning rather than in tariff levels and indicates how the administration has found new ways to keep tariffs in place as a cornerstone of Trump's economic policy. While the Supreme Court took away one justification, it did not ban tariffs as an approach.
Crypto currents
Bitcoin exchange-traded product flows strike a balance: Spot bitcoin ETPs mostly stopped bleeding funds in July, with inflows and outflows roughly cancelling each other out, resulting in net outflows of about $262 million as of Tuesday, according to Glassnode data. That's not exactly bullish, but it's the best month for spot bitcoin ETP flows since April and a marked improvement from June, which saw net outflows of $4.6 billion. No doubt that improvement, and a softer June inflation print, helped support bitcoin's price during the month. It rose as much as 14% before giving up some of that ground over the past week or so. Still, the market remains rangebound during an extended period consolidation. Any attempt to break out of that range and challenge overhead resistance will likely take more traders and investors jumping into the market.
On the move
- Microsoft gained ground after Wednesday's close and is up about 9% ahead of the open following earnings that topped expectations. Azure cloud revenue growth was notably impressive, up 43% versus estimates of 39.6% growth. The stock is in slow recovery mode, having notched a new 52-week low in late June.
- Meta moved sharply lower post-market after reporting per-share earnings, revenues, and revenue guidance that all fell short of Wall Street estimates. In pre-market action, the stock is down nearly 10% ahead of the opening bell.
- Wednesday was a busy day for tech earnings as Lam Research (LRCX), Qualcomm (QCOM), and Arm Holdings (ARM) also issued their results. Lam topped estimates and rallied, Qualcomm was down more than 5% before the bell, and Arm was little changed despite reporting earnings and revenue numbers that met or exceeded expectations.
- The slide continued for other semiconductor- and data-storage related stocks on Wednesday. Vertiv Holdings (VRT), KLA (KLAC), Micron Technology (MU), Super Micro Computer (SMCI), and Applied Materials (AMAT) all lost 8% or more.
- Beaten-down Sandisk (SNDK) gained nearly 7% in pre-market trading.
- Bristol-Myers Squibb (BMY) rose more than 2% in pre-market trading after reporting earnings and revenue that topped analysts' expectations.
- Starbucks (SBUX) gained more than 6% in early trading after reporting earnings that exceeded estimates and raising its full-year outlook.
- Carvana (CVNA) was down nearly 11% ahead of the opening bell after its full-year guidance fell short of Wall Street expectations.
- Fortinet (FTNT) gained nearly 11% in pre-market trading after easily topping estimates for revenue and earnings.
More insights from Schwab
Attack position: In his latest crypto writeup, Jim Ferraioli, director of digital currencies research and strategy at the Schwab Center for Financial Research, examined a 51% attack, which is an attempt to seize more than half of a blockchain network's mining power. At present, the 10 largest publicly traded bitcoin miners collectively control about 38% of the Bitcoin's network hash rate. While this backdrop makes a 51% attack on the Bitcoin network relatively unlikely—if not unreachable—the network's attack costs play into its valuation.
Fed fodder: Our new FOMC reaction piece offers a detailed recap of the Federal Reserve's decision yesterday, including Warsh's words on press conferences and "family fights."
Paying it forward: Annuities, or contracts between insurance companies and investors, are often used to set up a predictable stream of retirement income. Schwab's piece explains what they are, how they work, and what risks and tradeoffs are involved.
Fixing a rogue trade price: If a trade's entry price seems off, it may simply require a tweak to your settings on the thinkorswim® platform. Our quick video offers a fix.
A handy mortgage primer: Conforming or not, fixed-rate or adjustable. Shopping for a new home also involves shopping for a mortgage. Schwab's article walks through different mortgage types, including what to consider and how to compare.
Chart of the day
Data source: Nasdaq, S&P Dow Jones Indices. Chart source: thinkorswim® platform.
Past performance is no guarantee of future results.
For illustrative purposes only.
If you've been watching the headlines, you've seen plenty about the pullback in chip stocks, as illustrated by the roughly 25% drop in the PHLX Semiconductor Index (SOX—candlesticks) from its late-June highs. But elsewhere across the S&P 500, breadth is arguably stronger than it's been in over 18 months. Earlier this week, and before yesterday's late-session drop, the percentage of S&P 500 components trading above their 200-day moving average ($SPXA200R—blue line) rose to 73%, its highest point since December 2024.
The week ahead
Check out the investors' calendar for a summary of the top economic events and earnings reports on tap this week.
July 31: University of Michigan final July consumer sentiment and expected earnings from ExxonMobil (XOM), AbbVie (ABBV), Chevron (CVX), Eaton (ETN), and Enbridge (ENB).
August 3: ISM Manufacturing PMI® for July, and expected earnings from Marriott (MAR), Palantir (PLTR), Vertex Pharmaceuticals (VRTX), Williams Companies (WMB), ONEOK (OKE), and Diamondback Energy (FANG).
August 4: Expected earnings from Caterpillar (CAT), Merck (MRK), Toyota (TM), McDonald's (MCD), Pfizer (PFE), BP (BP), Duke Energy (DUK), Cummins (CMI), Marathon Petroleum (MPC), Apollo Global Management (APO), Rockwell Automation (ROK), Space Exploration Technologies (SPCX), Advanced Micro Devices (AMD), Arista Networks (ANET), Amgen (AMGN), and Gilead Sciences (GILD).
August 5: ADP employment data for July, ISM Services PMI® for July, and expected earnings from Eli Lilly (LLY), Walt Disney (DIS), Novo Nordisk (NVO), Shopify (SHOP), CVS (CVS), Uber (UBER), Sandisk (SNDK), Western Digital (WDC), and AppLovin (APP).
August 6: Preliminary second-quarter productivity and expected earnings from ConocoPhillips (COP), Cloudflare (NET), and Airbnb (ABNB).