07/08/2026
Last week showcased a notable divergence within the markets. While U.S. technology stocks struggled—particularly semiconductor companies, which declined by roughly 10% on Wednesday, the broader market demonstrated resilience. The S&P 500 finished the week up nearly 2% as investors rotated into other sectors. International equities also posted solid gains, supported in part by a U.S. dollar that weakened by more than 0.5%.
As we reach the halfway point of 2026, all major market indexes remain in positive territory. For diversified investors, the first half of the year has served as a reminder of the value of maintaining a balanced portfolio and staying focused on long-term objectives through periods of market volatility.
On the economic front, the June employment report reflected a slowdown in hiring. According to the U.S. Bureau of Labor Statistics, the economy added 57,000 nonfarm payroll jobs during the month, while payroll gains for April and May were revised lower by a combined 74,000 jobs. The unemployment rate edged down to 4.2%, although the decline was largely attributed to a smaller labor force rather than stronger job creation.
Economic growth expectations also softened throughout June. The Atlanta Fed's GDPNow estimate for second-quarter GDP declined to 1.2% by month-end, reflecting weaker consumer spending, slower private inventory accumulation, and softer net exports.
Looking ahead, the Federal Reserve's next policy meeting is scheduled for July 29. As of Friday's close, futures markets were pricing approximately a 78% probability that interest rates will remain unchanged and a 22% probability of an increase.
Disclosure:
Market and economic data are based on publicly available sources as of the date of publication and are subject to revision. This content is provided for informational and educational purposes only and should not be construed as investment, tax, or legal advice. Investing involves risk, including the possible loss of principal.
