CNBC Business News Update - Market Close: Dow Drops 1,153 pts, Worst Since April 2025, Meta Mixed • 7/29/26

Episode Date: July 29, 2026

CNBC Business News Update with Jessica Ettinger - Markets & Business News With Expert Analysis From Top Business Names. Visit CNBC.com For More. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.

I'm Jessica Ettinger, CNBC. Wall Street opens Thursday morning after a dramatic sell-off for stocks on Wednesday. The Dow's plunge was its worst since April of 2025. And the stock drop in the session began well before the Fed decided to hold interest rates steady. President Trump with a fresh threat for Iran oil prices surged. The Dow, down 1,153 points more than 10153 points more than It was led lower by shares of Caterpillar, which were down almost 7%. Goldman Sachs down 5%. Invidia shares down 3.5% Wednesday. The S&P 500 indexed down 112 points. That was 1.5%. The NASDAQ plunging 433 points, 1 and 3 quarters percent. Chipstock sold off into the close on Wednesday. Companies whose shares hit fresh all-time highs, though, include Coca-Cola. COLA GM and Apple, the Fed stayed on the sidelines and decided to do nothing to try to help with

high inflation. The yield on the 30-year Treasury hit its highest since 2007. It's now over 5.2%. The 10-year treasury yield jumped, and you could see mortgage rates jump, too, as mortgage rates loosely follow the yield on the 10-year. Clearly, the bond market suggesting that, you know, inflation is going to perhaps not be addressed in the way they thought it might, is driving all this rate sensitivity through the equity market. Banks really dislike this. It is not the kind of yield curve steepening that banks are going to like. And one more note on what Fed Chairman Kevin Warsh said Wednesday from CNBC's Mike Santoli.

So much of the discussion from Chairman Warsh about, oh, supply side growth is good. It's going to lead to disinflation down the road. we shouldn't have a trade-off between economic growth, full employment, and tame inflation. That's all great. But nobody's saying we have to raise rates because the economy's good. People are saying we have to raise rates if we do because inflation's been above target and it seems like it might stay there. After the Fed held interest rates steady on Wednesday, Fed Chair Warsh hinted again that experts are looking at inflation data and whether better data might be out there, almost as if they're not buying the current data. I've called for a task force to revisit

both the private and public data we use to make our decision making. That task force is out doing their work. I'll be checking back in with them the next couple of weeks. Fed Chair Warsh also said this about the U.S. economy. The economy is showing impressive resilience. Even with recent shocks, the trends are positive and reveals solid growth. The NASDAQ is in correction, according to Fairlead strategies, Katie Stockton on CNBC, down 10% from its recent high. We have a down draft already of more than about 10%.

We're at that point where it's in correction territory in our work. Meta out with disappointing results for the last quarter. An EPS miss, META's earnings per share of $6.18 coming in well below expectations of $7.22 per share. You see, shares are now down 7%. CNBC's Julia Borsden, Microsoft shares were ticking higher in after hours trading on Wednesday on better than expected. quarterly results. Starbucks raised its full year outlook. Same store sales jumped almost 8% in the last quarter. On Thursday's watch list, earnings are coming from a couple of biggies, including Apple and Amazon, plus MasterCard, Reddit, and drug maker Bristol Myers. Squibb, we get a read on U.S.

Economic Growth. We're going to get new GDP gross domestic product numbers. We find out how many people applied for unemployment benefits last week. Jersey Mike's subs is poised to issue shares to the public for the first time. Jessica Eddinger, CNBC.