Market Update: June 29, 2026

Last week’s market action reflected a tug-of-war between a still-resilient macro backdrop and growing valuation sensitivity in crowded trades.

U.S. economic data leaned constructive overall, with upward revisions to Q1 GDP, steady gains in personal income and spending, firm PMI readings, and improving consumer sentiment. Offsetting this strength, durable goods orders and new home sales softened, suggesting pockets of cooling in interest-rate-sensitive areas.

Equity markets pulled back globally, led by a sharp reversal in technology. In the U.S., value and small caps outperformed while growth lagged, with the Nasdaq pressured by renewed debate around AI-related capital spending versus near-term profitability. Announcements of higher end-product pricing from major tech firms, tied to rising chip costs, added to investor scrutiny. Defensive sectors - such as health care, utilities, and consumer staples - performed well, while real estate benefited from declining yields.

Fixed income provided ballast, as Treasury yields moved lower across the curve amid easing inflation expectations. Investment-grade bonds outperformed, while high yield and floating-rate segments lagged modestly. Commodities declined broadly, with oil falling below $70 per barrel as improved geopolitical conditions alleviated supply concerns.

International markets were also weaker, facing headwinds from a stronger U.S. dollar and concentrated positioning in AI-linked equities, particularly in parts of Asia.

Looking ahead, labor market data will be central, with this week’s employment report shaping expectations for a potential Fed move later this summer. With positioning elevated in select areas, markets may remain sensitive to both macro surprises and shifts in earnings expectations as we enter the second half of the year.

The information above has been obtained from sources considered reliable, but no representation is made as to its completeness, accuracy or timeliness.  All information and opinions expressed are subject to change without notice.  Information provided in this report is not intended to be, and should not be construed as, investment, legal or tax advice; and does not constitute an offer, or a solicitation of any offer, to buy or sell any security, investment or other product.