"The Focus Is Back on Iran": U.S. Stocks See a Sell-Off Ahead of the Fed's Decision
The "Wall Street Fear" Index—a measure of market volatility—has once again surged above the critical level
Photo: X / NYSE
Major U.S. stock indices plummeted during trading on July 29: “Unfortunately, the news has turned back to Iran, which we didn’t expect at the start of this week,” said Jay Woods, chief market strategist at Freedom Capital Markets, according to CNBC. Following Iran’s overnight attempt to attack U.S. positions in the Middle East, U.S. President Donald Trump once again threatened Tehran with new strikes.
Against this backdrop, the Dow Jones index fell by more than 1.5% on Wednesday, the Nasdaq Composite lost 1%, and the S&P 500 dropped 0.8%. Meanwhile, oil prices surged: Brent rose by more than 7%, breaking through the $90 mark again after three days of declines, while U.S. WTI stands at $85 per barrel, also showing a gain of more than 7%.
The "Wall Street Fear" Index (VIX) briefly exceeded the critical 20-point threshold—which indicates heightened market volatility—jumping more than 8% from the previous close.
"Any unexpected statements from the Fed could accelerate this sell-off," Woods added. The Fed is expected to announce its interest rate decision after July 29.
This article is being updated
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