Market Review: July 02, 2026

Closing Recap

Thursday, July 02, 2026

Index	Up/Down	%	Last
DJ Industrials	592.99	1.13%	52,898.23
S&P 500	-0.48	0.01%	7,482.75
Nasdaq	-207.36	0.80%	25,832.67
Russell 2000	-32.09	1.07%	2,980.50

 

 

 

 

 

 

 

 

 

Investors were cautious on the first day of July as they awaited the June payrolls data and another opportunity to attempt to determine the Fed’s next move. Futures eased slightly overnight ahead of the release but bad news was good news for Fed watchers as the 57k nonfarm payrolls number came in well below the 113k forecast and nowhere close to the whisper number of 138k. Futures popped back to green on the release as some rate-hike fears may have been calmed for now.

 

By mid-morning, stocks had split with the S&P higher and Nasdaq retreating again. Breadth favored advancers by 2:1 as small caps were mixed versus large caps with IWM (-0.06%) versus SPY (+0.32%) and QQQ (-0.51%). SPY breadth favored advancers by 19:7, while QQQ breadth favored advancers by 7:4 despite the index lagging. On a sector basis, Health Care (+2.06%), Energy (+1.15%) and Consumer Staples (+1.09%) were outperformers among S&P sector ETFs, while Communications (-0.31%), Technology (-0.70%) and Consumer Discretionary (-0.83%) paced the underperformers with 8 sectors gaining versus 3 declining.

 

In sentiment today, the weekly bull-bear spread was -10.9% versus +8.8% last week with bulls falling from 44.9% to 31.4%, while bears rose from 36.1% to 42.3%. Today’s Fear & Greed Index remained firmly in the Fear category at 37/100 versus last week’s 24 (Extreme Fear) and still well below last month’s 56 (Greed).

 

The afternoon brought more selling with the Nasdaq taking the much larger hit but the S&P also faded to modest losses. Late headlines from META indicating ai agent development hasn’t accelerated in the way they expected over the past four months and that the company’s 2026 reorganization wasn’t as clean as it could have been only accelerated stocks to the downside. Hope everyone has a safe and celebratory 4^th!

 

 

 

• Private Payrolls for June 49k versus 107k forecast and 120k prior.
• Manufacturing Payrolls for June 3k versus 3k forecast and 7k prior.
• Unemployment Rate for June 4.2% versus 4.3% forecast and 4.3% prior.
• Average Hourly Earnings M/M for June 0.3% versus 0.3% forecast and 0.3% prior.
• Weekly Jobless Claims 215k versus 218k forecast and 215k prior.
• Continuing Claims 1.814M versus 1.82M forecast and 1.821M prior.
• Factory Orders M/M for May -1.3% versus -1.8% forecast and -5.3% prior.
• Weekly EIA Natural Gas Inventory Data
• Baker Hughes Weekly rig count data

• WTI crude futures continued to pull back overnight as expectations ramp for higher Hormuz traffic and headlines indicated the next round of US/Iran negotiations will occur July 18^th. Later headlines on a stalemate regarding reopening Hormuz carried futures higher, eventually settling +$0.11/bbl, or +0.16%, at $68.69.  

 

 

Macro	Up/Down	Last
WTI Crude	0.11	68.69
Brent	0.23	71.80
Gold	43.30	4,125.70
EUR/USD	0.0049	1.1434
JPY/USD	-1.391	161.128
10-Year Note	0.01	4.485%

 

Sector News Breakdown

Consumer

Retail, Consumer Staples & Restaurants:

• DLTR announced a $2.5B share repurchase authorization. COTY announced organizational changes to advance Coty.Curated strategy which integrates prestige R&D, sustainability, and supply chain under Graeme Carter. ONON shares moved higher after JPM resumed coverage with an Overweight rating. Barron’s: PM’s “Safer Products Are Winning with Regulators. They’ll Win with Investors Too.”
• Per an SEC filing: Cumberland Farms announces US initial public offering of ordinary shares. Per another SEC filing: Jersey Mike’s Subs – announces initial public offering of Class A common stock with symbol JMKEis majority owned by BX Citi sees aluminum prices bottoming over the coming month before recovering towards $3,300-3,500/t between September and December (AA ).
• GPC shares spiked after Bloomberg said the company has reportedly received interest from ORLY regarding a potential acquisition of its automotive unit, best known as NAPA.

 

Autos, Leisure, Gaming & Lodging:

• China’s CPCA reports TSLA sold 89,091 vehicles made in China in June, +24.4% year-over-year. RIVN shares jumped after reporting Q2 production 12,613 vehicles, deliveries 12,194 vehicles vs consensus estimate 10,518 vehicles & raises FY delivery guidance to 65,000 to 70,000 vehicles from 62,000 to 67,000 vehicles earlier.
• TSLA shares inched higher after reporting Q2 total production of 451,758 units and Q2 total deliveries 480,126 units, consensus estimate was 402,776 units.
• F shares were roughly unchanged after reporting Q2 U.S. total EV sales 62,909 units, Q2 U.S. sales -10% due to model phase-outs & 69% drop in daily rental sales; Ford Q2 U.S. total vehicle sales 549,200 units.

 

Energy

• SBR announces monthly cash distribution for July 2026. PBA announces positive final investment decision on the Greenlight Electricity Centre.

 

Financials

Banks, Brokers, Asset Managers:

• JPM to join gulf banks on $7B loan for Syrian projects. CME reports record June average daily volume and second-highest Q2 ever and record June adv of 30.6M contracts, up 19% YoY. OWL shares rose after firm keeps withdrawal limits even as redemption pressure; investors seek to pull out $4.7B from two Blue Owl funds per Reuters.
• Hunterbrook writes that they are short STEP: “Due to an ill-timed contract, StepStone must buy out the profits interests tied to that retail arm held by CH Equity Partners LLC, an entity controlled by SPW executives.”
• JBAXY Bloomberg says Julius Baer loosens client ban as Benko clean-up nears end.

 

Bitcoin, FinTech, Payments:

• Crypto stocks gained as Bitcoin hit one-week highs (BTC ).

 

Insurance & Services:

• APG completes the acquisition of Wtech Fire Group and raises fy2026 net revenue outlook to $8.66B-$8.86B.

 

REITs:

• FMCC reports US 30-yr fixed-rate mortgage averages 6.43% in July’s 2nd week vs 6.49% prior week.

 

Healthcare

Biotech & Pharma:

• ABVX shares were higher after announcing full exercise of underwriters’ option to purchase additional ADSS, bringing gross proceeds of offering to $920M. HCM shares lifted after announcing NMPA approval for orpathys® for the treatment of gastric cancer patients with met amplification. ARCT shares gained following strategic collaboration with TMO to advance arct-032 for cystic fibrosis. TENX shares advanced after announcing late-breaking presentation of level clinical trial data at ESC Congress 2026. VRTX announced US FDA approval for expanded use of casGEVy® for the treatment of people ages 2 years and older with sickle cell disease or transfusion-dependent Beta thalassemia.
• AZN shares have moved higher after the company announced it entered into a strategic collaboration agreement with private Abbisko Therapeutics to jointly advance the clinical development of a novel IO-TKI combination therapy for non-small cell lung cancer. The company and private CSPC Pharmaceutical Group entered into an agreement to use the siRNA drug discovery platform to develop novel small nucleic acid drug candidates.

 

Healthcare Services & MedTech movers:

• USPH announces the acquisition of a twelve-clinic physical therapy practice. BFLY expands its handheld ultrasound availability into Brazil. CLRO shares soared after announcing to acquire VANI’s medical subsidiary Cortigent for 12.5m shares of CLRO worth ~$40.4m; Clearone to file s-1 seeking to raise $10m-$15m.
• Shares of healthcare stocks (THC ) were higher today after a favorable CMS proposal last night: CMS Acts to Strengthen Care Quality, Cut Drug Costs, and Slash Out-of-Pocket Expenses for Medicare Beneficiaries.
• FDA Classifies PODD’s Omnipod Pods Recall As Class I Due To Serious Injury Risk; Insulet Reports 24 Serious Injuries, No Deaths from Omnipod Pods Issue as of May 2.

 

Industrials & Materials

Transports

• Goldman Sachs wrote positively on airline names as the price of fuel continues to come down (BA, DAL, UAL).Three NAT vessels resume international operations after passing Hormuz Strait.

 

Aerospace & Defense

• Last night, LMT was awarded a $347.5M cost-plus-incentive-fee contract for development, fabrication and testing improvements to prototype air and missile defense systems. NATO to announce plans to purchase SAABY Globaleye surveillance jets at next week’s Summit, sources note. KTOS receives approximately $36M air Defense system single award contract.
• PL shares rose after the company and Isar Aerospace partner to launch first German-built satellite-rocket mission. SWMR, Tekmara and Florida International University explore autonomous drone swarms for coastal restoration and environmental monitoring. EADSY expects to deliver around 350 airplanes in the first half of 2026.

 

Materials, Metals & Mining

• LNN shares gained today after Q3 results beat estimates. AEM shares fell after reporting rock mass movement at Barnat open pit on July 1, 2026, and suspends mining operations at Barnat open pit; expects Q2 2026 production of about 845,000 ounces of gold. HBM receives regulatory approval to further increase mill throughput at its Constancia mine in Peru.
• BHP and CPPKF sign definitive San Manuel agreement; deal for Faraday’s 100% acquisition of bhp’s San Manuel property in Arizona, USA. CAT to invest in the future of Texas’ manufacturing workforce; launches Texas workforce initiative as part of $100M five-year program.

 

Technology

Internet, Media & Telecom

• GOOGL shares were lower after losing EU top court fight over €4.1b Android fine. SURG shares are sharply higher after the company announced last night, they had entered into an amendment to the agreement with T to eliminate the $50M minimum spend commitment. AT&T agreed to forgive the $10.3M of previously billed minimum commitment charges more than actual usage. JBL files for mixed shelf offering; size not disclosed per SEC filing.
• DIS’s Disney+ and Anime Ltd. announce U.K. and France streaming deal for award-winning anime slate. META is rolling out a new app called Pocket with a social feed of vibe-coded mini games per Business Insider. Bloomberg reports that AMZN to begin internet service this year after latest satellite launch.

 

Hardware & Software movers:

• Blomberg reported that SAP will cut back on hiring and travel to save costs as it devotes more resources to developing AI technologies and fending off new competitors. Bloomberg reported that SFTBY and its telecom unit will start renting AI computing resources to US companies next fiscal year in a bid to capitalize on the company’s growing pipeline of data center projects.
• Shares of PLTR advanced following an upgrade to Buy at DA Davidson. MSFT announces the creation of 6,000-worker unit to help clients with AI called Microsoft Frontier; investing $2.5B to launch it.
• In datacenters, FPS’s 29.1M share Secondary is priced at $49.00. IREN announced the appointment of Kambiz Aghili as Chief Product Officer and Michael Nudelman as Chief Development Officer. AKAM completes acquisition of secure enterprise browser provider Layerx. BX‘s QTS is walking away from plans to build its portion of a data center campus in Virginia, handing a win to residents who fought for years to topple the project per Bloomberg.
• The Information reported that MSFT is planning to merge its consumer and enterprise Copilot chatbots in August with Copilot exec Jacob Andreou cutting low-value Copilot features.

 

Semiconductors & AI:

• TrendForce reported that Sk Hynix reportedly removes price cap in memory long-term agreements, diverging from MU. MU shares rebounded a tad from a multi-day selloff partially helped by praise from Trump over Micron’s donation to the Trump Accounts.
• The Information reported that Anthropic in talks with SSNLF to manufacture custom AI chips.
  Trump administration and Anthropic have not discussed the government taking stakes in the firm, source familiar with the matter notes.
• Research boutique SemiAnalysis published a positive piece stating INTC’s EMIB‑T roadmap shows aggressive bump‑pitch scaling and larger Bridge capabilities, positioning it as a credible alternative to TSMs CoWoS for AI packages.
• ElevenLabs has held early talks with investors to let employees sell shares in a secondary offering that would value the artificial intelligence startup at roughly $22 billion, according to people familiar with the matter per Bloomberg.
• META CEO Mark Zuckerberg notes in internal town hall that AI agent development over the last four months hasn’t ‘accelerated in the way we expected’ according to Reuters.
• TSLA caps employee Ai spend at $200/week per The Information.