• Wall Street equities ended mixed on July 3, with the DJIA dropped by -0.06%, the S&P 500 rose by +0.51% and the Nasdaq advanced by +0.88%.
• Stocks ended Wednesday's holiday-shortened session on a high note, with the S&P 500 and Nasdaq hitting new records. Trading closed at 1 p.m. EST and will remain closed Thursday for the July 4 holiday. T-note yields fell, supporting market gains as weak US economic data raised hopes for Fed rate cuts this year.
• The 10-yr UST yields declined by -7.0 bps to 4.36%, while the 2-yr yields slipped by -3.0 bps to 4.71%. Treasury yields dropped on Wednesday following weak economic data in the labor market and services industry, raising hopes for an earlier Fed interest rate cut.
• The US Jun ADP employment rose by +150,000, below the expected +165,000. Meanwhile, weekly initial unemployment claims increased by +4,000 to 238,000, and continuing claims climbed by +26,000 to a 2.5-year high of 1.858 million, both exceeding forecasts.
• The US June ISM Services Index dropped by -5.0 points to 48.8, falling short of the expected 52.7 and marking the steepest contraction in four years.
• Eurozone producer prices experienced a steeper decline in May 2024. Prices fell by -0.2% MoM and -4.2% YoY, missing expectations of a -0.1% MoM and a -4.1% YoY decrease.
• Global bond yields were mixed on Wednesday: the 10-yr German bund yield fell by -1.7 bps to 2.58%, the 10-yr UK gilt yield dropped by -7.6 bps to 4.17%, and the Japanese 10-yr JGB yield climbed by +1.5 bps to 1.10%.
