Market Summary - June 25, 2026
Key Economic Data Released
On June 25, 2026, the U.S. released its Personal Consumption Expenditures (PCE) inflation data for May, which showed a month-over-month increase of 0.4%, slightly below the expected 0.5% and up from the previous 0.3%. The year-over-year PCE inflation remained at 4.1%, matching expectations but higher than the previous 3.8%. The core PCE inflation, which excludes food and energy, was stable at 0.3% month-over-month and 3.4% year-over-year, aligning with market expectations.
U.S. Spending and Earnings
Personal earnings for May increased by 0.7%, surpassing the expected 0.4% and the previous 0.6%. Personal spending also rose by 0.7%, exceeding the expected 0.6% and previous 0.4%. However, consumer spending for Q1 was reported at 0.5%, significantly lower than the expected 1.4% and previous 1.9%. This discrepancy raises concerns about the sustainability of economic growth in the U.S.
Market Reactions
The release of the PCE inflation data and earnings figures led to a slight increase in the Euro, with the EUR/USD pair gaining 0.2%. The market interpreted the data as indicating a less hawkish stance from the Federal Reserve, despite strong GDP and jobless claims figures. The lower durable orders and consumer spending figures have raised questions about the ongoing momentum of the U.S. economy.
Market Wrap-Up
On June 26, 2026, the market saw declines across Europe, with the Nasdaq down 1.3% ahead of the U.S. market opening. Notably, On Semiconductor's stock dipped by 13%. Additionally, Chinese stocks faced significant declines, with Alibaba down 50% from its all-time high, indicating a broader panic in the market.