Global Markets Weekly Update - June 26, 2026
U.S. Market Overview
Major U.S. stock indexes finished the week mixed, with the Nasdaq Composite and S&P 500 Index declining due to weakness in large-cap technology and AI-related shares. In contrast, the small-cap Russell 2000 Index and Dow Jones Industrial Average saw gains of 1.01% and 0.60%, respectively.
Inflation and Economic Indicators
The Bureau of Economic Analysis reported a rise in the personal consumption expenditures (PCE) price index by 0.4% in May, with headline PCE inflation reaching 4.1%, the highest since April 2023. Personal income and consumption both increased by 0.7%, indicating consumer resilience.
Business activity improved in June, with the S&P Global Flash PMI rising to 52.2. However, employment softened, and supply chain delays became more widespread.
Bond Market Insights
U.S. Treasury yields declined as oil prices fell and inflation data met expectations. The yield on the benchmark 10-year U.S. Treasury note dropped below 4.40% for the first time in over a month.
European Market Overview
The STOXX Europe 600 Index ended the week broadly unchanged. Concerns over elevated valuations in AI-related stocks led to a sell-off in global technology stocks. Germany’s DAX fell by 1.26%, while the UK’s FTSE 100 Index climbed 1.40%.
Japan Market Overview
Japan's stock markets declined, with the Nikkei 225 Index falling 2.65%. Falling oil prices supported demand for Japanese government bonds, while consumer inflation in Tokyo rose, reinforcing expectations for continued interest rate hikes by the Bank of Japan.
China Market Overview
Chinese equities ended the week lower, with the CSI 300 Index down 1.48%. The People's Bank of China announced a new liquidity management framework, while Premier Li Qiang emphasized innovation-led growth at the World Economic Forum.
Other Key Markets
South Korea
The KOSPI Composite Index fell 7.08% as AI-linked shares reversed sharply after record highs, leading to increased scrutiny of the volatile equity market.
Romania
Romanian assets faced pressure due to a political deadlock, raising concerns about fiscal consolidation and access to EU recovery funds.
Market Performance Summary
| Index | Friday’s Close | Week's Change | % Change YTD |
|---|---|---|---|
| DJIA | 51,876.11 | 311.41 | 7.93% |
| S&P 500 | 7,354.02 | -146.56 | 7.43% |
| Nasdaq Composite | 25,297.62 | -1,220.32 | 8.84% |
| S&P MidCap 400 | 3,816.11 | 24.63 | 15.46% |
| Russell 2000 | 3,009.94 | 30.17 | 21.28% |
Important information: This material is for informational purposes only and is not intended as investment advice. Past performance is not indicative of future results.