International markets update:
Global markets are grappling with increased geopolitical tensions, a deeply divided Federal Reserve, and a mixed earnings season for major tech companies, leading to a significant risk-off sentiment across asset classes.
- Middle East tensions escalated significantly following U.S. strikes on Iran and President Trump’s warnings of further action, driving Brent crude futures up 7.9% to $90.74 a barrel and WTI futures up 6.6%.
- The U.S. Federal Reserve maintained its interest rates at 3.5%-3.75%, though the 9-3 split vote signaled considerable internal disagreement on the policy path, which Chairman Warsh described as a “family fight.”
- U.S. equity markets reacted negatively to both geopolitical developments and the Fed’s contentious decision, with the Dow Jones Industrial Average suffering its worst decline since April 2025, falling 2.19%.
- Meta Platforms experienced a nearly 10% drop in its stock price after disappointing second-quarter earnings results missed analyst estimates and the company issued weak forward guidance.
- In contrast to Meta, Microsoft shares surged 7% in extended trading, buoyed by robust fiscal fourth-quarter revenue that exceeded expectations and a commitment to stable capital expenditures for 2026.
- The strategic competition in Artificial Intelligence is heating up in Asia, with the U.S. actively working to counter China’s growing influence as a leading AI supplier in the region.
Stock Market News summarised for the Wall Street Investors Club community.