Public Markets 3 Days

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

Markets Overview

Global equities were poised for a mixed start to the second half of 2026, with Asian stocks declining for a second session as investors continued to shed technology shares amid concerns that the artificial intelligence-driven rally had become overextended. European stocks, however, closed at a record high as a resurgence in AI trading added momentum to a rally that has yielded the best quarterly performance since late 2020. Wall Street was looking to shake off a volatile June, with markets showing fresh conviction to grind higher despite a series of shocks. The Dow industrials closed June at a record, while the S&P 500 and Nasdaq composite saw robust gains of 15% and 21% respectively in the second quarter marking Wall Street's best.

Energy & Commodities

Oil futures extended their decline as increased tanker traffic through the Strait of Hormuz and ongoing U.S.-Iran talks eased supply disruption concerns. This trend continued, with crude futures settling higher ahead of the U.S. holiday and oil prices steadied as more supply flowed through the key waterway. Refiner profits are soaring to multi-year highs, a sign that lingering kinks in supply chains persist despite increased shipments. Meanwhile, Saudi Arabia’s crude oil exports have surged close to pre-war levels, indicating a significant return of supply. Shell Plc forecasts global liquefied natural gas flows to stagnate in 2026 due to Middle East disruptions before rebounding in 2027. In other commodity news, Japanese companies have sold the highest amount of convertible bonds in over two decades in the first half of the year, turning to this cheaper financing option as interest rates climb.

U.S. Equities & Economy

U.S. stocks ended a mixed session after June hiring data came in significantly below expectations, prompting investors to dial back bets on a Federal Reserve interest-rate increase. The weaker-than-expected jobs report lifted hopes for a Fed pause, leading to a rotation trade on Wall Street. U.S. manufacturing activity expanded for a sixth straight month in June, though at a slower pace, with a gauge of input costs dropping. The Institute for Supply Management’s purchasing managers’ index for factory activity was 53.3 in June, a 0.7 percentage point decrease from May. The WSJ Dollar Index fell 0.5%, snapping a two-day winning streak. Comex gold ended the week 0.81% higher at $4112.70, and silver gained 0.9%, marking a third consecutive session of gains for both metals.

Corporate & Deal News

Lockheed Martin is reportedly in the lead to acquire naval technology group Ultra Maritime in a $3.5 billion deal, with an agreement expected as early as next week. CMA CGM, the world's third-largest container line, is set to purchase FedEx Supply Chain for $1.4 billion to bolster its contract logistics business in the U.S. In the technology sector, autonomous driving software firm Wayve Technologies has filed to sell shares on the London Stock Exchange’s new Private Securities Market, marking the first major company to test the platform. iHerb, an online retailer specializing in vitamins and supplements, has selected banks to lead its anticipated $500 million IPO. Jersey Mike’s Subs and Cumberland Farms have also filed for IPOs, broadening the market for new U.S. listings.

Regulatory & Legal

JPMorgan Chase & Co. lost a legal battle over Charlie Javice's expenses, with a Delaware judge ruling the bank must continue to pay her legal bills, stating the bank failed to demonstrate the $74 million in fees were excessive. Separately, a judge demanded answers regarding plans for President Trump's East Potomac Golf Course amid denials that renovations were proceeding without approval. Egg producers have agreed to pay $3.3 million to settle a federal price-fixing lawsuit and donate over 53 million eggs to food banks. In the UK, the Financial Conduct Authority has criticised investment firms for unintelligible disclosure documents and banned 'double-dipping' as part of efforts to improve customer treatment. Forvis Mazars was fined £600,000 for pervasive audit failings.

Geopolitics & International

Ukraine has escalated drone strikes and attacks on Crimea, aiming to pressure Russian President Vladimir Putin to end the war. Russia, in turn, has responded with deadly ballistic missile and drone strikes on Kyiv, killing at least 21 people and damaging residential buildings in a wave of attacks. The conflict continues to remind Europe of its vulnerabilities, prompting increased military spending across the continent as the conflict escalates. In the Middle East, U.S. officials reportedly believed Israel was plotting to kill Iranian negotiators, a development that comes as U.S. and Iran continue talks while mediators engage. Canada and the Philippines plan to finalize a free trade agreement this year and deepen cooperation on energy and defense as agreements are signed.

Technology & AI

The semiconductor rally is tightening tech's grip on Wall Street, fueled by an AI spending frenzy. However, chip stocks are off to a rough start in the third quarter with a two-day skid. Concerns are mounting over AI's impact on financial stability, with an International Monetary Fund official suggesting that AI debt issuance may represent a greater concern than stock valuations due to leverage risks. Bank of England Deputy Governor Sarah Breeden warned that autonomous artificial intelligence agents pose a risk of causing "market meltdowns" and may require tighter regulation to prevent potential crises. Amazon is set to begin internet service this year with the launch of its broadband service, challenging SpaceX’s Starlink.

Presidential Politics & Finance

President Donald Trump believes Elon Musk will donate SpaceX stock to the Trump Accounts initiative, following other tech executives who have adopted the new investment vehicles. Trump's financial disclosure revealed over 21,000 securities trades in 2025, often in intense bursts tied to market events he influenced a $2 billion year. Less than 10 percent of eligible children have signed up for the Trump Accounts, which opened for contributions on July 4, indicating barriers to uptake despite millions signed up. The U.S. administration is resuming dollar transfers to Iraq after a monthlong suspension, part of efforts to pressure Baghdad to distance itself from Iran as shipments resume. The U.S. has also declined to immediately request a renewal of the USMCA trade deal, initiating a 10-year expiration clock and creating uncertainty for businesses regarding the trade agreement's future.

Real Estate & Infrastructure

Blackstone’s QTS has ended a data center project in Virginia following growing backlash against such facilities in the U.S. In a sweltering heatwave gripping much of the United States, data centers have been ordered to use backup power to reduce strain on electrical grids amid record temperatures. High temperatures, new AI data centers, and drought conditions are posing significant challenges to the electricity system this summer, creating "five alarm" risks for the power grid as demand surges.

Other Markets

South Korea has opened 24-hour won trading during a period of currency anxieties fraught moment. Australia's bond market is drawing significant global interest, pushing issuance to a record high driven by a flood of Asian capital fueling a $36 billion surge in Kangaroo bond sales. India's proprietary trading firms and stockbrokers are preparing for a major overhaul of their financing activities, as RBI funding curbs deliver a "body blow" to the sector impacting trading finance. Australia's ASX Ltd., the world's worst-performing stock exchange operator, is betting on an outsider to lead a turnaround as it seeks a pivot.