Global Markets Weekly Update - July 02, 2026
U.S. Market Overview
Major U.S. stock indexes had a mixed performance during the holiday-shortened week. The Nasdaq Composite, S&P 500, and Dow Jones Industrial Average saw gains, while the Russell 2000 and S&P MidCap 400 Indexes declined. The communication services, financials, and consumer discretionary sectors performed well, while real estate, utilities, and energy shares fell. The markets were closed on Friday for Independence Day.
Labor Market Insights
The U.S. economy added 57,000 jobs in June, significantly below the expected 110,000, marking the slowest growth since February. The unemployment rate decreased to 4.2%. The probability of a Federal Reserve rate hike in July dropped from 29% to 18% following this report. Additionally, private payrolls firm ADP reported a lower-than-expected addition of 98,000 jobs.
Consumer Confidence and Manufacturing Activity
Consumer confidence remains subdued, with the Conference Board’s index at 91.2 in June, slightly up from May. The manufacturing PMI dropped to 53.3, missing estimates but still indicating expansion.
Treasury Yields and Bond Market
U.S. Treasuries experienced negative returns as yields rose, with the 10-year Treasury yield increasing to about 4.49%. Investment-grade corporate bonds also saw negative returns but outperformed Treasuries.
European Market Update
The pan-European STOXX Europe 600 Index rose by 1.96%. Lower oil prices improved sentiment, and inflation in the Eurozone fell to 2.8%, easing pressure on the European Central Bank. German retail sales unexpectedly increased by 1.1% in May.
Japan's Economic Indicators
Japan's stock markets showed mixed results, with the Nikkei 225 Index declining while the broader TOPIX Index gained. The Bank of Japan's Tankan survey indicated improved sentiment among large manufacturers, although inflation and fiscal concerns pressured bond yields.
China's Manufacturing Data
China's manufacturing PMI rose to 50.3, indicating resilience in the sector. The People's Bank of China introduced new liquidity measures to support market sentiment, although broader easing was not signaled.
Other Key Markets
In Colombia, a central bank rate hike and new fiscal plans from the incoming government were focal points. Venezuelan markets weakened due to the impact of recent earthquakes on the economy and debt restructuring outlook.