What Happened Today, Wednesday July 29, 2026, 5:00 PM ET close
Stocks Fall After the Fed Stands Pat and All Eyes Turn to Big Tech AI Spending
The Nasdaq 100 led the pullback ahead of Microsoft and Meta earnings, while the Fed kept rates unchanged.
ES and NQ at the close
NQ, Nasdaq 100 futures
27,533.00
-1.39% on the day
Day range 27,202.00 to 27,536.50
ES, S&P 500 futures
7,378.25
-1.17% on the day
Day range 7,331.00 to 7,379.75
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The story
US stocks fell across the board on Wednesday as the market digested a Federal Reserve that left interest rates unchanged. The tech-heavy Nasdaq 100 led the slide, dropping 1.39 percent, while the broad S&P 500 eased 1.17 percent and the Dow also finished lower. Much of the attention shifted from the Fed decision itself to a bigger question hanging over the next few days: what Microsoft and Meta will say about their spending plans for artificial intelligence. Layered on top of that, a run of Iran-related headlines added a note of caution and gave sellers an extra reason to trim risk.
The MAG7 and the megacaps
The megacap technology names were at the center of Wednesday's pullback, and it showed in the Nasdaq 100 falling more than the S&P 500. With the Fed now on hold, investors are treating this week's Microsoft and Meta results as the real event, since both are expected to speak to how much they plan to keep spending on AI infrastructure. That single theme, whether the heavy AI investment keeps paying off, is doing a lot to set the tone for the largest stocks and, by extension, the whole index.
After the bell
The Fed holds rates steady
The Federal Reserve kept interest rates unchanged, a decision that was widely expected. Coverage focused on the five big takeaways from the meeting, but for the market the immediate reaction was less about the hold itself and more about what comes next. With policy on pause, investors are turning to upcoming earnings and data for the next real catalyst.
Big Tech AI spending is the next big test
With the Fed out of the way, the market's attention swung to Microsoft and Meta and what they will say about AI capital spending. Both are megacap names that carry heavy weight in the S&P 500 and Nasdaq 100, so their commentary on whether they keep spending aggressively on AI can move the entire market. That uncertainty helped explain why tech led Wednesday's decline.
Iran tensions return to the headlines
A cluster of Iran-related news added to the cautious mood. The US issued new Iran-related sanctions targeting insurers and additional tankers, and reports described US and Israeli officials weighing a range of options on Iran, including the possibility of an attack. Geopolitical uncertainty of this kind tends to make investors more defensive.
A broad, risk-off session
The selling was not isolated to one corner of the market. The Nasdaq 100, S&P 500, and Dow all finished lower, with tech taking the biggest hit. When declines are this broad and stocks close near their lows, it usually points to general caution rather than a single company or sector story.
Crypto
Bitcoin was essentially flat on the day, closing near 63,868 dollars, down a hair at 0.01 percent. It traded in a fairly tight band between roughly 63,266 and 64,620, which is a calm session compared with the moves in stocks. On a day when equities leaned lower and traders leaned cautious, crypto mostly held its ground rather than joining the selling.
Into the night
Futures pointed lower through the overnight and early hours, with the Nasdaq 100 contract reaching down to 27,202 before settling near 27,533. The S&P 500 contract traded down to 7,331 and closed around 7,378. The tight distance between the session highs and the closing prices shows a market that opened under pressure and never really recovered, closing well off its best levels of the day.
What is coming next
Microsoft and Meta earnings
This week
AI spending commentary is the main event for megacap tech
Nasdaq 100 level
27,533
Closed near session lows after a 1.39 percent drop
S&P 500 level
7,378
Slipped 1.17 percent, closing off its highs
Iran headlines
Ongoing
New sanctions and geopolitical reports to watch
The next stretch is really about the megacap tech earnings and the message they send on AI spending. If Microsoft and Meta signal continued heavy investment and confidence, it could steady the tech-led names that dragged the market lower Wednesday. At the same time, keep an eye on the Iran headlines, since fresh geopolitical developments can shift the mood quickly. As always, this is educational and not financial advice.
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Educational market recap, not financial advice. Futures and options trading carry substantial risk of loss. Prices reflect the 2026-07-29 session close; charts are live and interactive. Always verify before acting.