Global Markets Weekly Update - July 02, 2026
U.S. Market Overview
Major U.S. stock indexes had a mixed performance, with the Nasdaq Composite, S&P 500, and Dow Jones Industrial Average advancing, while the Russell 2000 and S&P MidCap 400 Indexes declined. The communication services, financials, and consumer discretionary sectors saw strong gains, while real estate, utilities, and energy shares finished lower. The U.S. markets were closed on Friday for Independence Day.
Labor Market Insights
The U.S. economy added 57,000 jobs in June, falling short of the estimated 110,000 and marking the weakest growth since February. The unemployment rate decreased to 4.2%. The probability of a Federal Reserve rate hike in July dropped significantly following this report.
Private payrolls firm ADP reported a lower-than-expected addition of 98,000 jobs in June, with small firms contributing over half of the hiring.
Consumer Confidence and Manufacturing Activity
Consumer confidence remains subdued, with the Conference Board’s index at 91.2 in June, slightly improving from May but still below expectations. The manufacturing PMI dropped to 53.3, indicating continued expansion but missing consensus estimates.
Bond Market Developments
U.S. Treasury yields rose, with the 10-year note yield increasing to about 4.49%. Investment-grade corporate bonds also saw negative returns but outperformed Treasuries.
European Market Highlights
The pan-European STOXX Europe 600 Index rose by 1.96%. Eurozone inflation fell to 2.8%, easing pressure on the European Central Bank for immediate action. German retail sales unexpectedly increased by 1.1% in May.
Japan's Economic Sentiment
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 concerns persisted.
China's Manufacturing Data
China's manufacturing PMI rose to 50.3, indicating expansion. 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 significant. Venezuelan markets weakened due to the impact of recent earthquakes on the economy and debt restructuring outlook.