Global Markets Highlights — Jul 1, 2026 | Aivina
July 1, 2026
Global financial markets saw mixed signals this week as cooler US inflation data initially fueled hopes for Federal Reserve rate cuts. However, the Fed subsequently revised down its 2024 rate cut projections, tempering dovish sentiment. Despite this, global equities, particularly US tech, continued their upward trajectory, reaching new highs driven by persistent AI optimism. Central banks remain cautious, navigating inflation trends and economic growth.
Highlights
- US inflation cooled more than expected in May, boosting initial rate cut hopes.
- Federal Reserve revised down 2024 rate cut projections to just one, tempering dovish expectations.
- Global equities, led by US tech, extended gains to new highs on sustained AI optimism.
Macro Overview
Inflation
US inflation cooled to 3.3% YoY in May; Eurozone's final May CPI rose slightly to 2.6% YoY, indicating mixed global trends.
Interest Rate Outlook
ECB cut rates but signaled caution; Fed projected fewer 2024 cuts, pushing back market expectations for aggressive easing.
Risk Sentiment
neutral
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