Wall Street reacts brutally to Fed chair Warsh’s interest rate hold: ‘the bond market puked on him’

Key Points:

• Apple reached a historic $5 trillion market capitalization on July 28, becoming the most valuable company globally with a price-to-earnings ratio of 41.2, significantly higher than its tech peers, largely driven by aggressive share buybacks totaling $185 billion in fiscal 2024 and 2025.
• The Federal Reserve's decision to keep interest rates at 3.5%, below the 4.1% inflation rate, has sparked widespread criticism and concerns over its credibility, with markets anticipating a rate hike in September amid persistent inflation and rising bond yields.
• Geopolitical tensions escalated as U.S. forces launched significant strikes against Iran, pushing Brent crude oil prices above $90 per barrel, exacerbating supply concerns amid already strained global petroleum reserves and ongoing conflicts in the Middle East and Ukraine.
• Investor sentiment remains cautious with small-cap tech stocks experiencing extreme volatility—up 237% year-to-date but down 36% in July—reflecting the broader market's uncertainty around AI sector valuations and economic conditions.
• A White House teleprompter operator, Gabriel Perez, was placed on unpaid leave and has since left federal employment after reports revealed he used insider knowledge to win over $100,000 betting on President Trump's speeches on a prediction market platform.