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July 1, 2026 - 16:28
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(Bloomberg) — Signs of economic strength spurred a bounce in stocks from session lows, with sentiment also buoyed by Federal Reserve Chair Kevin Warsh’s remarks that inflation risks have come down.Economically sensitive corners of the market outperformed, with most shares in the S&P 500 rising after data showed manufacturing activity expanded for a sixth straight month as a war-driven surge in input costs eased. But the equity benchmark was little changed as chipmakers sold off.Benchmark 10-year yields and the dollar wavered. Oil dropped as the US said indirect talks with Iran were positive.“Expectations of inflation over the first four weeks of this period have come down, inflation risks have come down,” Warsh said Wednesday at the European Central Bank’s annual Forum on Central Banking in Sintra, Portugal. He doubled down on a message from his first press conference as Fed chairman last month that the central bank will deliver price stability.Warsh repeated that he isn’t going to offer “forward guidance” with regard to upcoming interest-rate policy, marking a step-change at the US central bank.In the run-up to Thursday’s payrolls report, data showed private-sector job creation was solid again in June, capping the best three-month stretch for hiring in more than a year.The figures support the view that the labor market has strengthened after several months of uneven hiring, as job openings have risen and layoffs remain low. If confirmed in official government data, the trend could boost bets the next Fed move will be a hike, not a cut.Corporate Highlights:Meta Platforms Inc. is developing plans for a cloud infrastructure business that will sell access to AI computing power and models, setting up a new vector of competition with industry leaders like Amazon Web Services, Microsoft Azure and Google Cloud. Alphabet Inc.’s Google was ordered to pay almost $2 billion to Klarna Group Plc’s Pricerunner unit in a dispute over the search-engine giant’s abuse of power in the market for comparison shopping services. Software shares gained after Guggenheim upgraded a trio of companies, saying fears that artificial intelligence poses a mortal threat to the sector are overdone. Nike Inc. executives gave a cautious outlook and warned about elevated consumer anxiety, adding to investor concerns about the sportswear company’s painfully slow turnaround. Alcoa Corp. has agreed to buy South32 Ltd.’s bauxite, alumina and aluminum assets in a deal worth as much as $5.6 billion, cementing its position as a top producer as long-term demand strengthens and the Iran war exposes supply concerns. Some of the main moves in markets:StocksThe S&P 500 was little changed as of 10:27 a.m. New York time The Nasdaq 100 fell 0.8% The Dow Jones Industrial Average rose 0.1% The Stoxx Europe 600 fell 0.4% The MSCI World Index fell 0.1% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro fell 0.2% to $1.1395 The British pound rose 0.1% to $1.3277 The Japanese yen rose 0.1% to 162.34 per dollar CryptocurrenciesBitcoin rose 2.2% to $59,916.62 Ether rose 2.4% to $1,611.49 BondsThe yield on 10-year Treasuries was little changed at 4.46% Germany’s 10-year yield advanced three basis points to 2.89% Britain’s 10-year yield advanced two basis points to 4.77% The yield on 2-year Treasuries declined three basis points to 4.15% The yield on 30-year Treasuries was little changed at 4.96% CommoditiesWest Texas Intermediate crude fell 0.9% to $68.84 a barrel Spot gold rose 2.3% to $4,101.51 an ounce ©2026 Bloomberg L.P.
