Global and US markets hit all-time highs on Thursday, but faced some cooling in economic activity during May and June. The Atlanta Federal Reserve’s real-time estimate shows strong growth of 3% for the quarter. Investors are preparing for a more eventful second half, potentially influenced by the US elections in November.
Nvidia dropped 3.5% on Thursday, losing its position as the most valued company to Microsoft, while the Nasdaq ended its record closings streak. The Dow Jones gained 0.7% and the small-cap Russell 2000 remained unchanged.
Despite Treasury yields weakening due to housing construction and jobless claims, the dollar continued to strengthen. Foreign money is leaving China amid rising global trade tensions and deepening housing crisis.
Chinese stocks and the yuan had a rough end to the week, with the yuan reaching its weakest level this year. The Japanese yen is also weakening amid doubts about the Bank of Japan’s tightening and low inflation figures.
The Swiss National Bank’s second interest rate cut of the year pushed the dollar higher against European currencies. Sterling fell to a monthly low, despite British retail sales rebounding.
The euro fell to last week’s lows due to political turmoil in France and a slowdown in eurozone activity. S&P Global US surveys, Chinese countermeasures, and a potential $40 billion valuation for Revolut could impact US markets later on Friday.
Key developments to watch include S&P Global US June surveys, existing home sales, and retail sales in Canada. San Francisco Federal Reserve President Mary Daly and German Economy Minister Robert Habeck will speak. The European Union’s ECOFIN meeting and US corporate earnings from Carmax and Factset are also on the horizon.
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