What will drive the markets this week?
Stock markets saw gains last week, driven by technology stocks, resulting in a strong start to the year and the best first half for the Nasdaq Composite since 1983.
Despite interest rate hikes and bank failures, European stock markets closed higher, achieving substantial gains in the first half of the year. The pan-European Stoxx 600 index concluded the session with a 1.2% increase, with all sectors and major exchanges in positive territory. Overall, the index recorded a gain of around 8.8% for the first half of the year.
In the Asia-Pacific region, the final trading day of the first half of the year produced mixed results. The Nikkei 225 fell by 0.14% to 33,189.04, and the Topix slid 0.33% to 2,288.60. On the other hand, the Kospi in South Korea rose by 0.56%, closing at 2,564.28, and Australia’s S&P/ASX 200 gained 0.12%, concluding its session at 7,203.3.
This week will be shortened due to the Independence Day holiday in the United States, resulting in the closure of U.S. markets on Tuesday. Several important updates on the labor market are anticipated, including the release of the Job Openings and Labor Turnover Survey (JOLTS) and ADP’s National Employment Report on Thursday. These reports will set the stage for the release of the latest nonfarm payrolls report on Friday, which will track job growth in June. Additionally, PMI readings from S&P Global and the Institute for Supply Management (ISM) will be published, providing insights into the manufacturing and services sectors. Moreover, the Federal Reserve will release the meeting minutes from its most recent policy meeting.
Events expected to move the markets this week
Monday, July 3
- U.S. markets close early at 1:00 pm ET
- Sigma Lithium Corporation (SGML) reports earnings
- S&P Global Manufacturing PMI (Jun)
- ISM Manufacturing PMI (Jun)
- Construction Spending (May)
Tuesday, July 4
- U.S. Markets Closed (Independence Day)
Wednesday, July 5
- Factory Orders (May)
- IBD/TIPP Economic Optimism Index (Jul)
- FOMC Meeting Minutes
Thursday, July 6
- Coca-Cola Europacific Partners (CCEP) and Levi Strauss & Co. (LEVI) report earnings
- U.S. Trade Balance (May)
- Challenger Job Cuts (Jun)
- ADP National Employment Report (Jun)
- Job Openings and Labor Turnover Survey (JOLTS) Report (May)
- S&P Global Composite PMI - Final Reading (Jun)
Friday, July 7
- U.S. Nonfarm Payrolls (Jun)