Finance

June non-farm payrolls grew by a lower-than-expected 57,000, signaling a cooling trend in the U.S. labor market. This shift has led market participants to dial back expectations for a near-term interest rate hike, as the data provides the Federal Reserve with more room to maintain current policy levels. The unemployment rate also edged down slightly to 4.2% amidst a shrinking labor force participation rate.

The S&P 500 and Nasdaq Composite concluded the first half of 2026 with gains of approximately 10% and 13%, respectively, despite significant volatility. Recent sessions have highlighted a notable rotation out of large-cap technology and semiconductor stocks into value-oriented sectors and small-cap companies. This shift occurred as the 'Magnificent 7' tech giants faced valuation pressure while broader market participation increased.

Bitcoin and Ethereum have shown resilience in early July, with Bitcoin trading near the $61,500 level after experiencing one of its most challenging months for fund outflows. Recent price stabilization is attributed to renewed institutional interest and a streak of positive spot ETF inflows. Investors remain focused on upcoming regulatory developments and the ability of major digital assets to maintain established support levels.