Markets Do Poorly This Week - But It's Not The Iran War

https://www.newsmax.com/finance/streettalk/stocks-federal-reserve-inflation/2026/07/29/id/1264442/

Dow Plunges 1,100 Points on Fear Fed Is Behind on Inflation

Wall Street ended sharply lower Wednesday after the Federal
Reserve held interest rates steady, with AI-related chip stocks
adding to recent declines ahead of quarterly reports from
Microsoft and Meta Platforms.

The Fed's widely expected decision to leave the benchmark interest
rate in the 3.50%-3.75% range drew dissents from three of the 12
members of the policy-setting Federal Open ‌Market Committee
who "preferred" a quarter-percentage-point hike at this meeting.

The benchmark S&P 500 hit its lowest level in a month, ​while
the tech-heavy Nasdaq was down about 9% from its June record
high.

Investors had mostly expected the Fed to keep rates unchanged.

. . .

   I know Trump wants lower rates - but inflation really
   isn't under good control. Alas the Fed itself may not
   have full power over that. Long complicated supply
   lines are involved.

   NASDAQ ... investors finally realized they've been
   putting WAY too much money into "AI" and esp the
   memory-chip makers. Those stocks HAD been soaring
   much of the year, but RESULTS from that sector,
   money MADE, hasn't been so obvious.

   Plus, the Chinese now have decent competing AI models
   that do more will less for a lower (PRC subsidized)
   price to consumers.

   This year, hope yer laptop doesn't explode because
   getting one with the same specs will cost maybe twice
   as much as a year ago - CPUs and memory shortages.
   All the makers re-optimized to sell to the AI people,
   leaving few scraps for anyone else. Apple now wants
   to LEASE you yer iPhones/tablets so it can rip you
   off better.

   (lucky I bought last year - and upgraded three older
   laps to 'decent usability') just in case. No, I did
   not have a vision, it just worked out that way. Linux
   system gets far more bang for the hardware buck than M$
   or Apple, by the way)

   Anyway, I suppose this is what's called a "correction".
   People suddenly realized they were investing massive
   money in 'dreams' rather than stuff that'd make their
   companies solid profits today. The money isn't "gone",
   but a lot is going to MOVE AROUND.

   Finally, in a number of relevant countries, 'AI' is
   falling out of favor - viewed more as a threat than
   as a Robotopian solution. Data centers are being
   aggressively blocked in the USA now, the Euros are
   slapping far more reg/protection shit on 'AI' and
   uses thereof. Push-back is increasing, so there
   will be many changes from the 'vision' of even just
   a couple years ago.

   If 'AI' isn't gonna Do Everything then move money back
   to software/cloud people. If at least one good memory
   maker restarts its 'consumer' product line, put money
   there. As usual, the future is NOT quite what was
   predicted.