As London/European traders head for the exit, the markets are scared of the Fed (and war)

• U.S. economic growth slowed unexpectedly during the second quarter, primarily driven by a widening trade deficit and the impacts of tariffs and conflict in Iran. • Despite the overall slowdown, consumer spending grew at a rate of 3.2%, supported by higher gas prices and larger tax refunds.

• Eurobank has raised its 2026 outlook following strong financial results reported for the first half of the year. • CFO Harris Kokologiannis detailed a full-year Net Interest Income (NII) guidance of €4.5 billion, comprising €2.7 billion from H1 and an expected €1.8 billion for H2.

• Major stock indexes surged on Thursday, recovering from a previous day's plunge that followed the Federal Reserve's decision to maintain current interest rates. • Market volatility was highlighted by divergent movements in Microsoft and Meta Platforms shares as investors focused on the "Magnificent Seven" mega-cap tech firms.

• US stock markets, including the Dow Jones, NASDAQ, and S&P 500, staged a sharp recovery during morning trading on Thursday, July 30, 2026. • This rebound follows a steep sell-off in the previous session, which was triggered by the Federal Reserve's decision to keep interest rates unchanged.

• The Dow Jones Industrial Average experienced a significant drop of 1,000 points, driven by investor anxiety over the Federal Reserve's decision to maintain interest rates between 3.5% and 3.75% at its July 2026 meeting. • Market volatility was further exacerbated by rising oil prices following Donald Trump's promise to retaliate against Iran after a surprise attack on U.S. forces.

• U.S. stock futures for the S&P 500, Nasdaq 100, and Dow Jones rose on Thursday following a lower close on Wednesday. • The market gain follows the release of the Federal Reserve's preferred inflation gauge, the Core PCE, which showed a monthly ease to 0.1%.

• The Federal Reserve voted 9 to 3 on Wednesday to keep its benchmark short-term borrowing rate steady within a range of 3.5% to 3.75%. • This decision reflects a divide among policymakers, though the majority remains committed to curbing stubborn inflation.

• Fed Chairman Kevin Warsh sparked market volatility during his second press conference by attributing current economic tightening to the bond market rather than Fed policy. • Investors reacted negatively to Warsh's decision not to raise interest rates, causing the Dow to drop over 2% shortly after the event.

• The Federal Reserve decided to hold interest rates steady during its most recent meeting, though the decision was met with significant internal opposition. • In a rare move not seen since September 2016, three Fed members voted against the hold in favor of an interest rate hike.

• The Nasdaq surged 2%, driven primarily by strong performance in Microsoft and various semiconductor stocks. • Market activity occurred as investors analyzed megacap tech earnings and the Federal Reserve's recent decision to maintain current interest rates.

• The United States has launched new military strikes against Iran, contributing to an escalation of fighting across the Middle East. • Oil prices are hovering around $91 per barrel as markets react to the increased geopolitical instability and potential supply disruptions.