Earnings Season Meets Macro Shock: Reading the July 30 Selloff

Three things rarely hit at once in markets. On Thursday, July 30, they all did. The Bureau of Economic Analysis dropped its advance estimate of Q2 2026 GDP at 8:30 ET, alongside the Bureau of Labor Statistics' June PCE inflation reading. After the prior night's close, Meta Platforms reported Q2 earnings that missed consensus by 13.8% and sent its stock down 9.64% in after-hours trading. The combined pressure drove SPY, the S&P 500 ETF, down 1.54%, QQQ off 2.04%, and VIX spiking 13.5% to 20.66, crossing above the threshold that options traders treat as a signal to position defensively. Key Takeaways VIX spiked 13.5% to 20.66, crossing above the 20 threshold that signals elevated institutional…