FOMC Minutes Offer Fresh Policy Clues 08/07/2026

 


HOT stories for today

Market wrap:

• U.S. stocks moved lower Tuesday as investors rotated out of artificial intelligence-linked shares and rising oil prices added pressure to broader market sentiment. The Dow Jones Industrial Average fell more than 100 points after briefly touching a fresh intraday record earlier in the session. The S&P 500 declined 0.5%, while the Nasdaq Composite dropped 1.2%, with chipmakers leading losses across the technology sector. The selloff reflected a continued unwind in some of the market’s strongest AI and semiconductor names, which had powered much of this year’s rally. The pressure also spread overseas, with South Korea’s Kospi entering bear-market territory as the global chip rout deepened. Oil prices jumped after reports of U.S. strikes against Iran raised concerns that a fragile Middle East truce could break down. The move added another layer of uncertainty for investors already watching inflation risks and the Federal Reserve’s policy path. 
• Attention now turns to the minutes from the Federal Open Market Committee’s June meeting, due Wednesday at 2 p.m. ET. The release is expected to provide more detail on Fed Chair Kevin Warsh’s first policy meeting, where officials kept interest rates unchanged but signaled that additional hikes could still be possible if inflation remains elevated. Vital Knowledge founder Adam Crisafulli said the minutes could be a wildcard, noting that Warsh was less transparent than investors were used to under Jerome Powell. He added that the minutes may carry a hawkish tone and could contain surprises for markets.

Oil Jumps as U.S.-Iran Tensions Flare

• Oil prices climbed Wednesday after the U.S. launched fresh strikes on Iran in response to attacks on commercial vessels near the Strait of Hormuz, raising fears that a fragile Middle East ceasefire could unravel. West Texas Intermediate crude rose more than 3% to $72.61 a barrel, while Brent crude gained 3.1% to $76.49, as traders priced in renewed supply risk around one of the world’s most important oil shipping routes. U.S. Central Command said the strikes followed attacks on three commercial vessels transiting the Strait of Hormuz, calling Iran’s actions a violation of the ceasefire reached last month.
• The waterway had only recently reopened to commercial shipping after months of disruption. The escalation also comes after the U.S. Treasury withdrew a waiver that had allowed Iran to sell oil, signaling a tougher stance from Washington. The renewed tensions add pressure to markets already watching inflation risks, Treasury yields and the Federal Reserve’s policy path. A sustained rise in energy prices could complicate the inflation outlook and strengthen the case for a more hawkish Fed stance.

Stocks on the move:

• SpaceX (SPCX): Shares fell 6.8% on heavy volume of 78.8 million shares. Analysts’ average price target stands at $236, about 47% above Monday’s close, with Raymond James launching coverage at $800, Morgan Stanley at $300, JPMorgan at $225 and Goldman Sachs at $205, while Morningstar remained bearish with a target near $62.
• Rivian Automotive (RIVN): Shares dropped 18.1% after the company announced plans to sell 75 million shares, with an additional 11.25 million-share underwriter option. Rivian guided for second-quarter revenue of $1.55 billion to $1.65 billion, reported roughly $5.3 billion in cash and raised its 2026 delivery outlook to 65,000 to 70,000 vehicles.
• Chevron (CVX): Shares gained 3% after attacks on tankers near the Strait of Hormuz pushed oil prices higher and lifted energy producers.
• Caterpillar (CAT): Shares fell 3% after the company’s Skycatch acquisition sparked investor selling and weighed on the Dow.
• SanDisk (SNDK): Shares tumbled 7% after Samsung’s earnings triggered sharp profit-taking across memory-chip names.

Watchlist: SNDK, AMAT, MRVL, USO, SPCX, MSFT, COIN, LEVI

Key Economic Events Today:

EST time

10:00 am: USD Final Wholesale Inventories
10:30 am: USD Crude Oil Inventories
02:00 pm: USD FOMC Meeting Minutes


Earnings

BMO (Before Market Open): Levi Strauss (LEVI), Helen of Troy Limited (HELE)

AMC (After Market Close): PriceSmart (PSMT), AZZ Inc. (AZZ)


The TEFS Analyst team wishes you a successful day!