Public Markets 24 Hours

Last updated: July 2, 2026, 8:30 AM ET

Global Markets & Macroeconomics

Leveraged exchange-traded funds (ETFs) are experiencing a record surge sweeping the financial system, creating potential for mounting losses across hedge funds, banks, retail traders, and money market funds. This pervasive leverage is occurring as investors are using these vehicles to turbocharge bets on artificial intelligence stocks, magnifying swings in companies like SK Hynix as analysts warn. The growing use of leverage comes as a "quant tremor" has roiled systematic investors, disrupting algorithmic trading strategies. Global tech stocks, in particular, are struggling ahead of key U.S. jobs data, with AI-related shares falling worldwide traders brace jobs day. This broad market caution is reflected in a global AI selloff extending to South Korea, where semiconductor stocks have also declined, reviving concerns that the recent AI rally might have been too rapid as Brent crude trades below pre-war levels.

Fixed Income & Monetary Policy

Treasury yields rose ahead of the payrolls report as traders digested economic indicators, with investors parsing comments from Federal Reserve Chairman Kevin Warsh for clues on interest rates. Warsh’s dovish stance on inflation underpinned a solid jobs market, but his subsequent comments on rates have traders concerned that a quieter Fed could spur market volatility as analysts worry. The bond market is taking Warsh's pronouncements seriously, though the flattening yield curve could be deceptive as one analyst notes. In Europe, European Central Bank Governing Council member Ulo Kaasik suggested that one more rate hike is a reasonable expectation following the Iran war, while ECB President Christine Lagarde stated that risks to euro-area inflation and growth have become more balanced as she noted. Japanese government bonds saw weaker demand at auction for the 10-year maturity compared to the 12-month average, with concerns that the Bank of Japan is not raising rates sufficiently to curb inflation. Foreign investors, meanwhile, offloaded the most Japanese bonds in three years in June, after the debt's lackluster performance lagged global peers.

Energy & Commodities

Oil futures extended their decline on supply optimism as ships navigate the Strait of Hormuz, with U.S. crude grades shedding their war premium as the energy crisis eases. Saudi Arabia is now exporting the most crude from inside the Persian Gulf since the Iran war, as producers boost shipments following an interim peace deal enabling Saudi supertankers. Flows through the Strait of Hormuz have increased, allowing China's independent refiners to snap up cheaper Middle Eastern oil from producers including Saudi Arabia and Iraq prices slide. However, fewer gas tankers are making the risky crossing, posing a challenge for LNG buyers as Qatar's export revival falters despite oil flowing again. Palm oil edged lower, weighed down by declining crude prices and expectations for strong output from Malaysia as production outlooks weaken.

Corporate Dealmaking & Earnings

Mega takeovers are driving a record $2.8 trillion in dealmaking as companies adjust to economic shifts, with the Asia Pacific region seeing deal volumes exceed $750 billion year-to-date despite global disruption. In a notable acquisition, Chanel buying Charvet, the storied Parisian shirtmaker, marking a rare move for the luxury house to expand its offerings beyond handbags as it seeks savoir-faire. buy a Texas ammonia for $1.3 billion, a move that supports its strategy of diversifying energy exposure and lowering costs. The French shipping group CMA CGM is acquiring FedEx's supply chain business for $1.4 billion, aiming to expand its contract-logistics operations in the U.S. Saudi Aramco is also set to change its name to Exxon Mobil Holdings Corp. after redomiciling in Texas, the first name change in over 25 years.

Technology & AI

The rapid growth of AI training clusters is driving "crazy" demand for battery storage solutions to smooth power surges. This surge in demand is prompting U.S. energy regulators to issue ultimatums to grid operators regarding the connection of "large loads" like data centers setting a 60-day deadline. Meanwhile, the European Union's top court upheld a record €4.1 billion fine against Google over its Android operating system, a significant victory for the bloc's efforts to curb Big Tech's market dominance. The effectiveness and potential risks of AI remain subjects of debate, with differing metrics for success and failure requiring nuanced interpretation. Some data suggests AI is already causing job losses, while other sources indicate the opposite, making it difficult to definitively measure its economic impact as economists sound alarms. The German software giant SAP is attempting to embrace AI without layoffs, betting on employees to reinvent their roles, though experts are divided on its feasibility.

Regional Markets & Specific Sectors

In India, SBI Funds Management is preparing a $1.2 billion IPO, testing investor demand, as the nation's IPO pipeline hits a record high with major companies preparing to list boosting banker expectations. Indian textile stocks are emerging as market standouts benefiting from trade deals, with some investors betting the rally has further to run. Meanwhile, Saudi Arabia and the UAE are restoring oil exports to pre-war levels, utilizing dark ships and bypassing the Strait of Hormuz. China’s private refiners are taking advantage of cheaper Middle Eastern oil as flows accelerate through Hormuz. In Europe, the Franco-German tank maker KNDS has postponed its IPO citing unfavorable market conditions, after investors balked at its valuation exceeding €12 billion.

Geopolitics & Regulation

The U.S. has resumed dollar transfers to Iraq after a months-long suspension, a move that had been part of efforts to pressure Baghdad to distance itself from Iran. Frequent drone flights over NATO military assets are raising concerns about Russian activities, with a new study suggesting this marks a campaign to probe defenses and gather information as Russian drone campaigns map defense gaps. In a significant regulatory development, the UK tax authority has won a series of legal cases involving limited liability partnerships, targeting corporate structures that save City firms millions through HMRC clampdowns. The Democratic Republic of Congo is planning its first stock market as an AI mineral boom draws interest, seeking to attract investment to an economy benefiting from soaring demand for critical minerals.