S&P 500 Drops 1.4% as Fed Rate Fears and Inflation Rattle Wall Street
As seen on the 24/7 Wall St. homepage on July 29, 2026.
- S&P 500-1.45%
- Dow Jones Industrial Average-1.86%
- Nasdaq Composite-0.27%
Dow tanked nearly 1,000 points as the Fed's rate outlook and inflation signals spooked the market. Nasdaq showed more resilience, hinting at sector divergence heading into earnings season.
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The S&P 500 closed at 7,321.63, shedding 107.59 points as the Federal Reserve's rate outlook and fresh inflation signals drove broad selling across the market. The index slid steadily through much of the session, briefly touching losses steeper than 1.5% before finishing down 1.4% from the prior close of 7,429.22.
The Dow Jones Industrial Average bore the brunt of the damage, falling nearly 1,000 points — a decline of roughly 1.9% — as rate-sensitive sectors led the selloff. The Nasdaq Composite held up comparatively well, finishing down just 0.3%, a gap that points to meaningful sector divergence with technology showing more resilience than the broader market.
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That divergence could take on added significance as earnings season approaches. Investors will be watching whether tech results can justify the Nasdaq's relative strength, or whether the pressure weighing on rate-sensitive names eventually spreads more widely across the market.