Market Report, 2026-07-30

After several days of stock sell-offs, especially among chip stocks, the market rebounded significantly today. Several underlying factors contributed to the recovery.

First, the market appeared to correct itself after yesterday’s sell-off following the Federal Reserve’s statement. Many chip stocks are unlikely to be materially affected by moderately higher long-term Treasury yields. Second, today’s GDP data showed that consumers remained strong, increasing optimism about near-term corporate profits. Finally, Microsoft delivered stellar quarterly earnings results, with its cloud unit driving most of the growth.

The Dow Jones Industrial Average rose 614 points to 52,208. The Nasdaq rallied 2.78% to 25,122, while the S&P 500 rose 1.66% to 7,438. The technology sector posted an impressive surge, delivering a one-day return of 5.5%. Furthermore, although the industrial sector as a whole rose by only about 1%, the subset of industrial companies closely associated with the buildout of electrical infrastructure gained nearly as much as the technology sector. This suggests that today’s rally was once again driven by artificial intelligence.

The bond market, however, remained under pressure, and fixed-income investors continued to express uncertainty about future inflation. Although the Federal Reserve chair maintained a hawkish tone, the decision demonstrated to the market that “talk is cheap.” The five-year Treasury yield rose four basis points to 4.39%, while the 10-year yield increased five basis points to 4.67%.

With oil prices declining, the personal consumption inflation gauge fell for the first time since the pandemic. Nevertheless, because the conflict remains unresolved, inflation risks continue to be elevated.

Adams Wealth Advisors will return tomorrow to summarize the week. Thank you for listening.