Public Markets 24 Hours

Last updated: July 2, 2026, 11:30 AM ET

Global Markets Overview

Global stock markets traded with caution ahead of key U.S. jobs data, with U.S. equity futures showing little movement after a rotation out of high-flying momentum stocks that powered last quarter’s rally. In Asia, Japanese and South Korean semiconductor stocks tumbled, mirroring a selloff in U.S. technology shares and reviving concerns that the blistering rally in artificial intelligence stocks may have gone too far, too fast . Meanwhile, Brent crude oil fell to the lower end of its range, trading below pre-war levels as oil futures dropped 1.3% in early Asian trade amid signs of potential OPEC+ output increases.

U.S. Economy & Labor Market

The U.S. labor market showed signs of cooling in June, with hiring slowing sharply and job growth curbing some of the year’s momentum, though the unemployment rate still managed to tick down to.2 percent. Average hourly earnings remained steady, a factor Federal Reserve Chairman Kevin Warsh cited as giving him room to focus on fighting inflation, while also dampening speculation of imminent rate hikesrate hikes. The weaker-than-expected jobs report triggered a rally in Treasuries, as traders scaled back expectations for Federal Reserve interest rate increases pushing yields lowerpushing yields lower.

Automotive Sector

Tesla saw a significant rebound in European sales during the second quarter, driven by price cuts that helped offset declines in the United States and boosted overall deliveries by 25% deliveries by 25%. This surge in demand in Europe and China helped counter weaker U.S. figures, which were impacted by the expiration of EV tax credits. Separately, the National Highway Traffic Safety Administration closed its probe into Tesla's "phantom braking" issue after complaints dropped sharply and found no crashes directly linked to the problem, deeming the risk low and noting that software updates had addressed the concerns.

Luxury & Retail

French luxury house Chanel has agreed to acquire Charvet, France’s oldest shirtmaker, known for its distinctive striped linen shirts that once graced the wardrobes of figures like Winston Churchill and typically retail for around €655 ($746). In the retail sector, Nestle noted that U.S. consumers are increasingly shunning mid-sized product packaging in favor of bulk or budget options due to price pressures, a trend the company is working to address by maintaining affordability.

Defense & Aerospace

Europe's rearmament efforts faced setbacks, with a German warship reversal impacting a landmark tank initial public offering. However, German drone maker Quantum Systems successfully raised $1.2 billion at a valuation of approximately $8 billion, securing capital to expand drone production and invest in autonomous systems software. The company is also weighing a merger with Stark, a kamikaze drone startup, a move made possible by the recent fundraising that eased shareholder opposition to developing lethal weapons. BAE's next-generation combat jet development is also accelerating due to new technology.

Energy Markets

India is planning to increase its oil reserves and expand storage capacity, alongside deepening supply partnerships, as a strategy to hedge against price volatility, particularly in light of events like the Iran war. Saudi Arabia's crude oil exports have surged back to pre-war levels, with supertankers exiting the Strait of Hormuz as regional producers boost shipments following an interim peace deal. However, Qatar's liquefied natural gas export revival is faltering, with fewer gas tankers making the still-risky crossing of the Strait of Hormuz compared to oil. OCBC revised its Brent oil forecasts downward to $75 per barrel for the third and fourth quarters of 2026, reflecting the rebound in flows through the Strait of Hormuz.

Investment & Finance

Investors are pulling back from Central American and Caribbean government bonds, which had previously delivered some of the strongest returns in emerging markets, as they deem the rally has gone "too far". Two Blue Owl Capital Inc. private credit funds have imposed withdrawal caps for the second consecutive quarter due to significant redemption requests, totaling $4.7 billion, though the requests were lower than in the previous quarterquarter. Hayfin Capital Management, however, successfully raised over €15 billion ($17.1 for its latest direct lending fund, indicating a concentration of commitments with established managers.

Technology & AI

Google lost its appeal against a €4.1 billion European Union fine related to its Android operating system, marking a significant victory for Brussels in its efforts to regulate Big Tech. AI infrastructure firm Core Weave Inc. saw its junk bonds fall for a second consecutive day amid concerns about Meta Platforms Inc.'s plans for a competing cloud business. The AI selloff extended to South Korea, with semiconductor stocks tumbling as a result of the U.S. tech rout and Meta's plans to sell access to AI computing power. The White House is accelerating plans for AI model standards, with guidance expected next week following government interventions in Anthropic and OpenAI rollouts.

Mergers & Acquisitions

Global merger and acquisition volume is expected to remain strong in the second half of the year, driven by a diverse range of deals, according to Melissa Sawyer, head of global M&A at Sullivan & Cromwell. Banks have already received sufficient investor demand to cover most of the approximately $49 billion debt package supporting the potential takeover of Warner Bros. Discovery Inc. by Paramount Skydance Corp. . In India, Adani Enterprises Ltd. and Abu Dhabi's International Holding Co. plan to invest $11.5 billion in an aluminum project in Odisha. Separately, Adani Enterprises is seeking to raise as much as $1 billion through a share placement to institutional investors.

Other Notable Developments

Comcast co-CEO Brian Roberts is planning to break up the family-controlled cable giant as a strategy for future growth. The Swiss wealth management firm Julius Baer Group Ltd. is nearing the end of its cleanup related to losses linked to Austrian property developer Rene Benko, signaling a move toward normalized business operations. India's textile stocks have emerged as market standouts this year, with some investors anticipating further gains for suppliers of T-shirts, bed linens, and towels to global retailers. Japan's retail investors purchased a record amount of local shares last week amidst a significant tech selloff.