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Last updated: July 2, 2026, 5:30 AM ET

Public Markets Briefing

Tech & AI Stocks Face Selloff Amid Jobs Data Anticipation

Global artificial intelligence stocks continued their sharp decline, with traders bracing for crucial U.S. jobs data to be released Thursday global AI selloff extends. This broad selloff has impacted Asian tech shares, which were hammered in early trading. The sentiment is amplified by regulatory pressures, as Google lost its appeal against a record €4.1 billion EU fine concerning its Android operating system. This decision is seen as a significant victory for Brussels' ongoing campaign against Big Tech. Meanwhile, Japan's retail investors stepped in during last week's equity market slump, buying a record amount of local shares amidst the tech selloff.

European Defense & Drone Sector Sees Surge in Investment

Investor enthusiasm for the defense sector is palpable, with German drone maker Quantum Systems raising $1.2 billion in a new funding round. This capital injection more than doubled the startup’s valuation to approximately $8 billion post-money. The company’s increased valuation follows shareholder opposition being removed regarding the development of lethal weapons after the substantial fundraising Quantum Systems weighs merger. In other defense news, European tank manufacturer KNDS has postponed its IPO, citing market conditions but indicating readiness to resume the process when favorable. Separately, a study has mapped nearly 150 Russian drone incursions over 19 months across more than a dozen European countries, revealing potential gaps in Nato air defence. Political leaders and analysts suggest these frequent flights over NATO military assets are part of a Russian campaign to probe defenses and gather intelligence drones over Europe raise.

Financial Services & Corporate Footprints

The accounting sector is expanding its physical presence, with PwC securing new office space in London’s Canary Wharf as it evaluates potential locations for its main headquarters. In a separate development, the audit of Studio Retail by Forvis Mazars and a partner resulted in a £600,000 fine from the regulator, which cited "numerous, serious and pervasive failings." On the Indian market, SBI Funds Management plans a $1.2 billion IPO set to launch in July, aiming to test investor demand for the offering. Meanwhile, Sodexo shares rose 6.8% following strong third-quarter revenue growth and an improved fiscal year outlook.

Asian Economic Trends and Inflation Watch

Switzerland’s inflation rate edged lower in June, marking the first decline since energy prices began to accelerate at the start of the conflict in Iran. The cooling inflation comes as energy prices have stabilized. In Asia, the complex economic situation in China is being examined, described as a "great economic contradiction." Discussions around Asia’s tech trends, including artificial intelligence and Japan’s startup ecosystem, are ongoing AI’s big questions humanity.