Stocks bounce

After dropping nearly 2% the week before, the S&P 500 retraced much of the drop during the first half of the week to start the new quarter on a positive note. It faltered a bit on Thursday heading into the long weekend, but managed to close the week in the green.

Stocks
Stocks kicked off the holiday-shortened trading week with a strong Monday as the Magnificent 7 staged a broad relief rally. News that the US and Iran had agreed to another temporary ceasefire fueled the bullish sentiment. Aside from the Magnificent 7, space stocks were also a bright spot. On Tuesday, stocks pushed higher again as tech stocks continued to recover. The Nasdaq gained another 1.52% and the S&P 500 added 0.79% to close the quarter.  Overall, the S&P 500 and Nasdaq finished Q2 up approximately 14.9% and 21.4%, respectively, their strongest quarterly performances since 2020. On Wednesday, however, stocks gave back some ground as markets weighed a new report showing job openings climbed to their highest in 2 years, reinforcing expectations for a more hawkish Fed. Elsewhere, the Nasdaq fell 1.5% on a pullback in chip stocks. However, on Thursday, a weaker-than-expected June nonfarm payroll update once again had the market revising their expectations regarding how the Fed might proceed. This initially helped push stocks higher, but they then dropped substantially going into the long weekend. Overall, commercial services, technology services, and health technology were among the top performers during the week, while producer manufacturing, electronic technology, and industrial services lagged.

Bonds
US Treasury yields were relatively contained to start the week, with US 10-year yields sitting at 4.38% on Monday as developments regarding the conflict in Iran helped dampen inflationary concerns, and oil prices pulled back. On Tuesday, however, a fresh jobs report showing the highest number of job openings in 2 years sent yields higher, with the 10-year rising as high as 4.469% as the labor market data reinforced the case for a more hawkish Fed. On Wednesday, the 10-year had climbed further to around 4.46% as markets increasingly priced in at least one rate hike this year, with some believing September will be a potential date for the first move. Fed Chair Warsh also announced he was forming a task force to evaluate whether the Fed should begin reducing its large balance sheet holdings of Treasury securities, adding additional upward pressure on yields. On Thursday, however, yields pulled back as the market digested a weaker-than-expected June nonfarm payroll report.

Oil
Oil prices saw significant movement throughout the week, largely dictated by the latest developments regarding the Iran conflict. WTI crude opened Monday with a price gain, but by Tuesday, it had settled near $70 per barrel as the market digested a roughly 30% drop in crude during Q2, driven by a surge in supply as traffic through the Strait of Hormuz accelerated following potential progress toward a peace deal. By Wednesday, crude had fallen below $69 per barrel, its lowest level since late February, as US-Iran talks continued to advance.

Gold 
Gold spent most of the week under pressure, bouncing around the $4,000 per ounce level. On Monday, prices dipped to around $4,052 as a stronger labor market backdrop and easing geopolitical tensions dampened safe-haven demand. On Tuesday, gold slipped further on the heels of a new jobs report, stoking expectations that the Fed could raise interest rates later in the year. On Wednesday, prices briefly staged a modest recovery as the market digested new comments from Fed Chair Warsh. Then on Thursday, they jumped as the market digested a weaker-than-expected jobs report.

Crypto 
Bitcoin entered the week in a bearish mood, briefly trading below $60,000 on Monday as it failed to participate meaningfully in Monday's equity rally. On Tuesday, it continued to drift lower, this time closing below the $60,000 level, and closing the month of June down over 20%. Then on Wednesday, it briefly dropped below $58,000 before staging a strong rally that took it back above $60,000. On Thursday, it built on bullish sentiment, briefly trading above $62,100 before market close. Altcoins followed in kind.

Source: Yahoo Finance, as of July 2, 2026.

KEY DATA FOR THE WEEK OF JULY 6

It'll be another quieter week for earnings reports as investors continue to watch for key employment data and other economic data.

Source: Fidelity.com, as of July 2, 2026.