The Federal Reserve voted 9-3 to keep interest rates unchanged at 3.5% to 3.75% on Wednesday, marking the fifth consecutive hold as inflation remains elevated. Fed Chair Kevin Warsh cited heightened fuel prices driven by the Iran war as a key factor. Three dissenting members voted for a 25-basis-point rate hike. President Trump has been pressuring the Fed to cut rates, but policymakers say they need to see sustained progress on inflation before making any moves.
Oil prices surged past $100 a barrel as the US-Iran conflict disrupted shipping in the Strait of Hormuz. President Trump simultaneously imposed a new round of tariffs on allies and rivals, straining global trade. The FTSE 100 hit a record high despite the sell-off in tech stocks, while Asian markets tumbled on fears of a prolonged trade war combined with soaring energy costs.
Brent crude futures fell more than 5% to $91 a barrel after the US and Iran paused tit-for-tat strikes over the weekend, raising hopes of a diplomatic resolution that could restore shipping through the Strait of Hormuz.
President Trump announced a 301 investigation and threatened steep tariffs against the European Union after it fined Google €890 million for violating the Digital Markets Act.
President Trump signed three proclamations imposing 50% tariffs on most Canadian goods using a 1930 trade law, citing Canada's alleged discrimination against American autos, alcohol, and dairy products. Canadian Prime Minister Mark Carney said Canada is prepared to negotiate but defended his country's trade practices.
IBM shares plunged 24% on Friday, heading toward the company's worst single-day loss on record, after the technology giant reported quarterly earnings that fell far short of analyst expectations. The rout erased tens of billions of dollars in market value and dragged down broader tech indices. The company cited slowing demand for legacy IT services and higher-than-expected costs from its AI infrastructure buildout. The selloff comes amid broader market jitters as oil prices surge past $95 on Iran war fears, with investors weighing the combined impact of higher energy costs and the new round of tariffs on 60 trading partners announced by the White House.
Tesla reported record quarterly revenue of $28.24 billion for Q2 2026, beating analyst estimates of $26.22 billion, but a major earnings miss sent shares tumbling in after-hours trading. Non-GAAP earnings per share came in below the $0.53 consensus as the company spent heavily on AI infrastructure, manufacturing expansion, and its Robotaxi program, while net profits declined 5% year-over-year.
Brent crude surged past $95 per barrel as the Iran-US conflict disrupted two major shipping chokepoints. Traffic through the Strait of Hormuz collapsed to just 9 ships on Tuesday, while Houthi threats against Saudi shipping in the Bab el-Mandeb strait sent tankers diverting from the Red Sea. U.S. gas prices climbed above $4 per gallon. Separately, China broadened its market rescue with record inflows into tech ETFs, and Samsung detailed features of its new smart glasses entering a market dominated by Meta.
President Donald Trump unveiled 50% tariffs on a wide range of Canadian imports on Monday, targeting cars, alcohol, and dairy products. The administration is using an untested legal provision to impose the duties, which threaten to reignite a trade conflict with one of America's largest trading partners. Canadian Prime Minister Mark Carney called the move destabilizing and signaled retaliatory measures. Gas prices have hit $4 per gallon as oil prices surge amid the Iran conflict.