{"id":65607,"date":"2026-07-29T09:38:14","date_gmt":"2026-07-29T13:38:14","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-alert-us-dollar-reserves-hit-century-lows-as-middle-east-conflict-escalates\/65607\/"},"modified":"2026-07-29T09:38:14","modified_gmt":"2026-07-29T13:38:14","slug":"market-alert-us-dollar-reserves-hit-century-lows-as-middle-east-conflict-escalates","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-alert-us-dollar-reserves-hit-century-lows-as-middle-east-conflict-escalates\/65607\/","title":{"rendered":"Market Alert: US Dollar Reserves Hit Century Lows as Middle East Conflict Escalates"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-alert-us-dollar-reserves-hit-century-lows-as-middle-east-conflict-escalates\/65607\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-alert-us-dollar-reserves-hit-century-lows-as-middle-east-conflict-escalates\/65607\/#Global_Reserve_Shift_and_Currency_Volatility\" >Global Reserve Shift and Currency Volatility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-alert-us-dollar-reserves-hit-century-lows-as-middle-east-conflict-escalates\/65607\/#Nvidia_Faces_Credit_Market_Warning\" >Nvidia Faces Credit Market Warning<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-alert-us-dollar-reserves-hit-century-lows-as-middle-east-conflict-escalates\/65607\/#Middle_East_Conflict_and_Energy_Impact\" >Middle East Conflict and Energy Impact<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-alert-us-dollar-reserves-hit-century-lows-as-middle-east-conflict-escalates\/65607\/#Federal_Reserve_Policy_Uncertainty\" >Federal Reserve Policy Uncertainty<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-alert-us-dollar-reserves-hit-century-lows-as-middle-east-conflict-escalates\/65607\/#Corporate_Earnings_and_Tech_Developments\" >Corporate Earnings and Tech Developments<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>The US dollar\u2019s share of global foreign exchange reserves has plummeted to approximately 42%<\/strong>, a near-century low, marking a 15-percentage-point drop since 2015 as the de-dollarization trend accelerates.<\/li>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>) credit risk has surged to record highs<\/strong>, with five-year credit default swaps (CDS) hitting an all-time peak of <strong>82 basis points<\/strong> amid concerns over $750 billion in potential AI infrastructure financing commitments.<\/li>\n<li><strong>Joint US-Saudi military strikes in Iraq killed at least 20 members<\/strong> of the Iran-backed Popular Mobilization Forces (PMF), leading to a spike in Brent crude prices toward <strong>$88 a barrel<\/strong> and disrupting regional stability.<\/li>\n<li><strong>Federal Reserve Chairman Kevin Warsh<\/strong> is set to lead a high-stakes press conference today, with markets pricing in a <strong>one-third chance of a surprise rate hike<\/strong>\u2014potentially the largest non-cut meeting surprise since 1997.<\/li>\n<li><strong>Ferrari (<a href=\"\/stock\/RACE\">RACE<\/a>)<\/strong> successfully hit its 2026 sales targets for the controversial <strong>Luce EV<\/strong> within just two months of launch, despite significant initial investor backlash over its design.<\/li>\n<\/ul>\n<hr>\n<h2><span class=\"ez-toc-section\" id=\"Global_Reserve_Shift_and_Currency_Volatility\"><\/span>Global Reserve Shift and Currency Volatility<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The US dollar is facing a historic challenge to its status as the world&#39;s primary reserve currency. New data reveals that the <strong>USD share of global FX reserves has fallen to roughly 42%<\/strong>, its lowest level in nearly 100 years. This decline represents a sharp <strong>15-percentage-point drop since 2015<\/strong>, driven by central banks diversifying into <a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">gold<\/a> and alternative currencies amid geopolitical fragmentation and the &quot;weaponization&quot; of the dollar through sanctions.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Nvidia_Faces_Credit_Market_Warning\"><\/span>Nvidia Faces Credit Market Warning<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While equity markets have remained resilient, the bond market is flashing a major warning for <a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>). The cost of insuring the chipmaker&#39;s debt against default has reached a record high, with <strong>CDS spreads widening to 82 basis points<\/strong>. Investors are increasingly wary of the company&#39;s &quot;circular financing&quot; risks, specifically reports that <a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> is discussing <strong>$250 billion in guarantees<\/strong> for OpenAI and other massive AI infrastructure projects.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Middle_East_Conflict_and_Energy_Impact\"><\/span>Middle East Conflict and Energy Impact<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Geopolitical tensions reached a boiling point on Wednesday as <strong>US and Saudi forces conducted joint precision strikes<\/strong> on Iranian-backed militias in Iraq. The strikes, which Tehran-based sources say killed four members of the Revolutionary Guard, were a response to recent drone attacks on Saudi energy facilities. In retaliation, Iran&#39;s Revolutionary Guard claimed to have <strong>halted three oil tankers in the Strait of Hormuz<\/strong>, immediately pushing <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">oil prices<\/a> higher.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Federal_Reserve_Policy_Uncertainty\"><\/span>Federal Reserve Policy Uncertainty<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>All eyes are on the <strong>Federal Open Market Committee (FOMC)<\/strong> as Chairman Kevin Warsh prepares for his second policy press conference. While most economists expect rates to remain steady in the <strong>3.50%-3.75% range<\/strong>, interest-rate futures indicate a <strong>31.5% probability of a surprise hike<\/strong>. Such a move would be the largest &quot;meeting-day surprise&quot; since the Fed began releasing policy statements in the late 1990s, as the central bank weighs persistent inflation against escalating war risks.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Corporate_Earnings_and_Tech_Developments\"><\/span>Corporate Earnings and Tech Developments<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Cognizant (<a href=\"\/stock\/CTSH\">CTSH<\/a>) reported mixed Q2 results, with revenue of <strong>$5.48 billion<\/strong> slightly missing estimates while raising its full-year EPS guidance to <strong>$5.70\u2013$5.82<\/strong>. Meanwhile, Ferrari (<a href=\"\/stock\/RACE\">RACE<\/a>) defied critics as its <strong>\u20ac550,000 Luce EV<\/strong> met its annual sales target in record time. In the semiconductor sector, <strong>TSMC<\/strong> confirmed that its Japanese facilities remain operational following a <strong>lower-5 intensity earthquake<\/strong>, easing immediate fears of supply chain disruptions in the region.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways The US dollar\u2019s share of global foreign exchange reserves has plummeted to approximately 42%, a near-century low, marking [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"rank_math_schema_Article":[],"rank_math_focus_keyword":[],"rank_math_description":[],"financial_data_references":[],"stock_symbols_mentioned":[],"footnotes":""},"categories":[5012],"tags":[39,633,3856,3880,4306,5323,6927,14488],"class_list":["post-65607","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking-news","tag-ctsh","tag-nvda","tag-race","tag-fomc","tag-dxy","tag-federalreserve","tag-pmf","tag-cds"],"_links":{"self":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/65607","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/comments?post=65607"}],"version-history":[{"count":0,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/65607\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media\/50383"}],"wp:attachment":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media?parent=65607"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/categories?post=65607"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/tags?post=65607"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}