.png)
1 hour ago
2
Kevin Warsh, chairman of the US Federal Reserve, during a news conference following a Federal Open Market Committee (FOMC) meeting in Washington, DC, US, on Wednesday, July 29, 2026.
Al Drago | Bloomberg | Getty Images
Hello, this is Hui Jie writing to you from Singapore. Welcome to another edition of CNBC's Daily Open.
Tensions in the Middle East are on the rise again, resurfacing worries about a prolonged conflict after President Donald Trump threatened to give Iran a "beating."
The Fed is witnessing a "fight" of its own, while investors flee Meta's stock after the company's disappointing guidance.
What you need to know today
Events overnight raised the specter of a lot of fighting. The Fed members apparently fought amongst themselves, Trump warned of "beating" Iran, and investors pummeled Meta stock.
The U.S Federal Reserve held rates unchanged in its meeting at 3.5%-3.75%, although the split 9-3 decision meant that not everyone was on board with the decision.
Fed Chairman Kevin Warsh described it as a "family fight," saying "I asked for a good family fight, and I got one. That's the purpose. That's the design feature." Warsh said that while the Fed won't provide hints on where rate policy is heading, it will take necessary steps to meet its 2% inflation goal.
Bond yields jumped following the meeting, while all three major indexes slid. The Dow Jones Industrial Average closed 1,153.18 points lower, or 2.19%, for its worst decline since April 2025.
Worries were not restricted to markets alone, as tensions in the Middle East rose, with U.S. Central Command striking Iran in response to a surprise attack on Tuesday.
Meanwhile, investors gave a real hiding to Meta, which saw an almost 10% fall in its stock after its second-quarter earnings missed estimates. The company's guidance also disappointed, while free cash dwindled to $784 million in the quarter from $8.55 billion a year earlier.
But its not all bad in the tech space. Microsoft shares moved 7% higher in extended trading on Wednesday after the software maker disclosed strong fiscal fourth-quarter revenue that beat expectations and called for steady 2026 capital expenditures.
— Lim Hui Jie
And finally...
The U.S. wants Asia to use its AI — but China dominates cheaper models
The artificial intelligence race between the U.S. and China is heating up in the world's largest continent: Asia.
"The American strategy is to stop China from becoming the leading AI supplier for the rest of Asia ... and frankly the whole world," said Gary Dvorchak, managing director at The Blueshirt Group.
But while China's alternatives are cheaper, he pointed out the U.S. currently offers a more complete solution from chips to AI models.
— Evelyn Cheng
