NEW YORK, July 29, 2026, 16:03 EDT — The Dow Jones Industrial Average tumbled by about 1,150 points as shares of Caterpillar and Goldman Sachs deepened losses triggered by a Federal Reserve decision.
- Early figures showed the Dow falling 2.18% to around 51,595.
- About 55% of the index’s point decline came from Caterpillar and Goldman.
- The Federal Reserve kept rates unchanged, with three members supporting a rate hike.
The Dow Jones Industrial Average (INDEXDJX:.DJI) dropped roughly 1,152 points on Wednesday. Early closing figures showed the index at close to 51,595, marking a decrease of 2.18%. The S&P 500 (INDEXSP:.INX) and Nasdaq Composite (INDEXNASDAQ:.IXIC) fell by smaller margins.
The distinction was significant. A handful of expensive Dow stocks intensified the headline drop, as the index assigns weights based on share price rather than market capitalization.
Goldman Sachs NYSE:GS and Caterpillar NYSE:CAT together accounted for approximately 628 negative points in the Dow late in the day, making up nearly 55% of the index’s early loss. A $1 change in any Dow component moves the index by about 5.94 points.
| Benchmark | Preliminary level | Daily change |
|---|---|---|
| Dow Jones | Approximately 51,595 | -2.18% |
| S&P 500 | 7,316.40 | -1.51% |
| Nasdaq Composite | 24,442.94 | -1.74% |
| Russell 2000 (INDEXRUSSELL:RUT) | Roughly 2,909 | -1.53% |
Shortly before the market close, at about 15:56 EDT. Data are still preliminary.
Brent crude ended up 7.3% at $88.09 a barrel as selling intensified late in the session. The yield on the 10-year Treasury reached approximately 4.64%.
The Federal Reserve maintained its target rate between 3.50% and 3.75%. The decision passed by a 9-3 vote, with three members preferring a 0.25 percentage point hike. Policymakers stated that energy supply shocks are sustaining higher inflation.
Federal Reserve Chair Kevin Warsh stated, “This Fed will not waver.” The comment maintained attention on the risk of a rate hike in September. Reuters
Natixis chief U.S. economist Christopher Hodge described the decision to hold as “the appropriate move.” He noted that policymakers have time to collect additional evidence ahead of September. Reuters
Caterpillar dropped almost 7% after Baird downgraded the stock to Hold from Buy. Analyst Mig Dobre reduced his price target to $900 from $1,200 and raised concerns about the sustainability of AI-driven demand for data centers.
Goldman declined around 4.6%. JPMorgan Chase NYSE:JPM and Sherwin-Williams NYSE:SHW were also among the biggest decliners in the Dow.
Procter & Gamble NYSE:PG issued a further cost alert from the defensive sector, guiding for fiscal 2027 sales to rise between 1% and 3%. The firm estimated a profit decline of $1 billion due to oil prices and related expenses.
Wednesday wiped out the Dow’s 1.03% advance from Tuesday. Still, the index remained just 0.7% under last Friday’s closing level. Early gains in the week gave support.
Focus turns to Microsoft NASDAQ:MSFT and Meta Platforms NASDAQ:META, both set to release results after Wednesday’s closing bell. Amazon.com NASDAQ:AMZN and Apple NASDAQ:AAPL are scheduled to deliver their reports in the days ahead. Investors are looking for proof that investments in AI are driving revenue growth.
For investors, the Dow’s move on Wednesday was partially due to mathematics. The S&P 500 declined less, indicating a widespread but milder pullback. The blue-chip index’s larger drop was magnified by two expensive stocks.
Risks persist. A renewed surge in oil prices, stronger rate hike bets for September, or disappointing megacap earnings may deepen losses. A reduction in tensions or a decline in inflation could trigger a rebound.
