US Markets Highlights — Jul 5, 2026 | Aivina
July 5, 2026
US equity markets, particularly the S&P 500 and Nasdaq, recently achieved new record highs, propelled by robust performance in the technology sector. The latest April PCE data aligned with expectations, showing inflation remains sticky but not accelerating significantly. However, recent macro indicators, including a contraction in manufacturing activity and a downward revision to Q1 GDP, suggest some economic softening. The Federal Reserve continues to emphasize data dependency, indicating a cautious approach to potential interest rate adjustments.
Highlights
- S&P 500, Nasdaq hit records; tech stocks drove gains; Nvidia performance strong.
- April PCE data met forecasts; core inflation remained persistent; Fed's rate path uncertain.
- US manufacturing contracted further; ISM PMI fell unexpectedly; economic growth concerns rose.
Macro Overview
Inflation
April PCE showed inflation persistent at 2.7% YoY, core at 2.8%, aligning with forecasts but remaining above Fed's target.
Interest Rate Outlook
Fed officials maintain a data-dependent stance, indicating no rush for rate cuts until more conclusive disinflation evidence emerges.
Risk Sentiment
bullish
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