03:53 PM EDT, 07/29/2026 (MT Newswires) -- (Updates with index/price moves and Federal Reserve/geopolitical news from the first paragraph.)

US equity indexes sank after the Federal Reserve left interest rates unchanged and as Iran's surprise missile attack on regional neighbors escalated war tensions ahead of Big Tech quarterly results post-bell.

The Dow Jones Industrial Average sank 2.2% to 51,610.9, with the Nasdaq Composite down 1.2% to 24,577.4 and the S&P 500 lower by 1.2% to 7,339.1 ahead of Wednesday's close. All sectors except energy, communication services, and consumer staples declined. Industrials, financials, and utilities led the steepest decliners.

Microsoft ( MSFT ) , Meta Platforms ( META ) , Lam Research ( LRCX ) , Arm (ARM), and Qualcomm ( QCOM ) will report earnings after the bell on Wednesday, and investors will focus on what these companies will say about capital expenditures related to artificial intelligence and the state of free cash flows.

The Fed held its policy rate steady in a divided decision, as three officials called for policy tightening. The Federal Open Market Committee maintained the target range for the federal funds rate at 3.50% to 3.75%, marking its fifth consecutive pause. Ahead of the decision, UBS Securities projected three dissenting votes as a base case. The committee reiterated its pledge to "deliver price stability" as inflation remained above the 2% target amid supply shocks.

President Donald Trump said Iran will be hit hard, according to Fox News, after the US Central Command joined Saudi Arabian Armed Forces to conduct strikes in Iraq against Iran-aligned terrorists that the Islamic Revolutionary Guard Corps directed to attack US forces and Saudi energy infrastructure.

The front-month US West Texas Intermediate jumped 6.8% to $84.63 a barrel, and global benchmark North Sea Brent surged 7.6% to $90.45 a barrel.

US Treasury yields were mixed, with the 10-year up 5.3 basis points to 4.66% while the two-year dropped 4.6 basis points to 4.23%.