Public Markets 3 Days

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

Global Markets & Economy

Global equity markets faced volatility as investors digested a mixed bag of economic data and ongoing geopolitical tensions. The AI stock rally showed signs of faltering, with a broad tech selloff extending to South Korea, prompting concerns that the year's blistering gains may have been overextended. Analysts at Goldman Sachs, however, anticipate a broadening of stock gains in the second half, driven by technology earnings. Meanwhile, Japan's retail investors stepped in to buy a record amount of local shares during a recent tech selloff, while overseas investors continued to offload Japanese bonds, selling the largest pile in three years in June foreign traders selling. In Europe, FTSE 100 futures pointed to a second day of declines, with global markets broadly struggling ahead of key U.S. jobs data. The yen consolidated ahead of payrolls, with traders on alert for potential intervention by Japanese authorities to bolster the currency yen edges higher.

Energy & Commodities

Oil markets saw mixed signals as shipments through the Strait of Hormuz increased, easing some supply concerns, while other energy sectors faced disruption. Saudi Arabia significantly boosted crude exports from within the Persian Gulf, marking its largest flow since the Iran war truce Saudi supertankers exit. This increased flow has led to a glut in Asian markets, with refiners offering cargoes to the U.S. growing oil glut. U.S. crude grades have shed their war premium and are again trading at a discount US crude grades shed. However, the revival of LNG exports has faltered, with fewer gas tankers making the risky crossing of the Strait of Hormuz bad news LNG. Shell warned that global LNG supply could contract if disruptions continue, though it expects growth in 2027 Shell warns LNG supply. In Europe, France experienced significant agricultural losses due to a record heatwave, with corn production cut by as much as 30% and hundreds of thousands of poultry killed French heat wave kills. Palm oil prices dipped on weaker crude and an improved production outlook from Malaysia palm oil dips. U.S. natural gas futures saw a pickup, correlating with rising temperatures this summer US natural gas futures.

US Economy & Labor Market

The U.S. jobs market remained a central focus, with traders awaiting a crucial employment print for clues on the Federal Reserve's interest rate path. Treasuries edged lower as traders anticipated the report, following comments from Federal Reserve Chairman Kevin Warsh, who struck a dovish tone on inflation Treasuries slip before payrolls. The jobs market is seen as a key factor underpinning Warsh's inflation pledge solid jobs market. Consumers are showing a preference for bulk or budget pack sizes, leading companies like Nestle to work on keeping prices in check as they shun mid-sized options amid a price squeeze consumers shun mid-sized. General Mills is also aiming to win back thrifty consumers with new protein and pet food products, while reducing prices on some budget-conscious items General Mills aims. The USDA is planning to offer payments to smaller meatpackers to help them continue slaughtering cattle amid a livestock shortage USDA plans payments.

Corporate & Dealmaking

Corporate activity saw varied developments, from major IPOs and acquisitions to strategic shifts and regulatory challenges. Mega takeovers are driving a record $2.8 trillion in global dealmaking, with companies and investors adjusting to economic shifts influenced by AI mega takeovers drive. Asia deals have surpassed $750 billion despite global disruptions Asia deals top. In the IPO space, German drone startup Quantum Systems more than doubled its valuation to $8 billion in a new funding round, raising $1.2 billion Quantum Systems doubles, while Chinese energy stock China Resources New Energy raised $3.6 billion in Asia's largest IPO this year Chinese energy stock triples. India is preparing for its own IPOs, with SBI Funds Management planning an offering that could raise up to $1.2 billion SBI Funds IPO, and Carlsberg filing for an IPO of its India unit to raise as much as $700 million Carlsberg IPO filing. On the acquisition front, Chanel has acquired the storied French shirtmaker Charvet, a rare move for the luxury house looking to expand its offerings Chanel snaps up. In a significant move for the fertilizer industry, Yara plans to buy a Texas ammonia plant for $1.3 billion to diversify its energy exposure Yara to buy plant. JPMorgan Chase is leading the race to acquire French cooling network provider Idex JPMorgan leads race and is also joining Gulf lenders in arranging about $7 billion of debt financing for Qatari firm projects in Syria JPMorgan joins Gulf banks.

Technology & AI

The burgeoning field of artificial intelligence continues to reshape industries, though its economic impact remains complex to measure. While some data suggest AI is causing job losses, others indicate the opposite, making it difficult to ascertain the precise effects AI reshaping economy. Metrics for dangerous AI success and failure require different interpretations how capable AI. Investors are utilizing leveraged ETFs to turbocharge their bets on AI-related stocks, magnifying swings in companies like SK Hynix investors using leveraged ETFs. However, the AI sector experienced a broad selloff, raising concerns about the sustainability of its rapid ascent global AI selloff extends. The U.S. energy regulator has set an ultimatum for data centers, giving grid operators 60 days to justify or revise their connection processes for large loads or face regulatory decisions US energy regulator ultimatum. In a win for Big Tech, the EU is considering weaker climate rules for data centers, having dropped stricter proposals for renewable energy certificates after significant lobbying efforts EU weighs weaker data. OpenAI has reportedly proposed giving the Trump administration a 5% stake in the company as political pressure mounts OpenAI proposes stake. The White House has lifted a ban on Anthropic models, allowing the AI startup to re-release certain products White House lifts ban.

Financial Regulation & Funds

Leverage is reportedly sweeping through the financial system, potentially exposing various entities to mounting losses. Record leverage is being observed across hedge funds, banks, retail traders, and money market funds leveraged ETFs tip iceberg. Hedge funds have seen a rebound, with firms like Millennium and Point72 posting double-digit returns in the first half of the year hedge funds rebound. The Bank of England plans to limit hedge fund leverage to enhance the resilience of the gilt market, a move criticized for potentially increasing funding costs Bank of England limits leverage. In the private credit market, Hayfin Capital Management raised over €15 billion for its direct lending fund, indicating a concentration of institutional commitments with select managers Hayfin defies angst. The U.S. Supreme Court has blocked a key Trump policy that sought to end birthright citizenship, a ruling that also impacts the president's authority over federal regulators Supreme Court blocks Trump. Meanwhile, Jana Partners has increased its stake in fintech Alkami and is pushing for a sale.

International Trade & Geopolitics

Geopolitical tensions and trade dynamics are influencing various international markets. China and the U.S. are reportedly seeking to reduce tariffs on certain agricultural products to preserve a broader trade truce China and US target tariffs. The European Union is set to limit tariff-free steel imports, imposing a 50% duty above quota to protect its domestic industry EU to limit steel. In the Middle East, shipping traffic in the Strait of Hormuz has picked up, though vessels experienced delays and pullbacks due to exchanges between Iran and the U.S. shipping traffic picks up. The Democratic Republic of Congo is planning its first stock exchange as it seeks to attract investment amid soaring demand for AI-critical minerals Congo plans stock market. India's textile stocks are performing strongly, boosted by trade deals with global retailers like Walmart India textile stocks stand out. A study found that Russian drone campaigns have mapped NATO air defense gaps, with frequent flights over European countries probing defenses and gathering intelligence Russian drone campaign mapped. Concerns are also rising over the misbranding of energy drinks in India, with the food regulator targeting several major brands including Red Bull India food watchdog targets.

Other Notable Developments

In the automotive and transport sector, insights are emerging on the USMCA and European airlines auto & transport roundup. Jaguar is transitioning to an all-electric future with a new flagship model, a strategy deemed distinctive but risky Jaguar's electric future. The FAA is moving toward a mandate for aircraft technology after a deadly crash in Washington D.C., aiming to improve pilot visibility of nearby aircraft FAA moves toward mandate. Jet Blue pilots have reported striking drones at New York's JFK Airport, though the aircraft landed safely without damage JetBlue pilot reports. French ultrafast fashion retailers Shein and Temu face new fines under a law targeting companies with high volumes of low-price products, which also bans advertising and influencer promotions France passes new law. In a move to bolster its balance sheet, biotech firm Abivax saw its shares rise after an upsized stock offering, signaling investor confidence following positive clinical trial data Abivax shares climb. Swiss inflation edged lower in June, its first decline in eight months, as cooling energy prices feed into the domestic economy Swiss inflation edges lower. New Zealand house prices are nearing a three-year low, reflecting economic slowdown and the impact of the oil shock on household incomes NZ house prices near low.