By Stephen Culp
NEW YORK, July 1 (Reuters) – U.S. and world stocks embarked on a new month and quarter with little conviction, as tech shares in general and chip stocks in particular weighed on Wall Street. Meanwhile, remarks from U.S. Federal Reserve Chair Kevin Warsh that inflation risks have eased boosted gold and helped the dollar pare earlier gains.
I will go into more detail on today’s market moves below. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today.
1. U.S. factory activity decelerates in June, prices paid component falls but remains elevated
2. U.S. private payrolls growth fall shy of estimates, announced layoffs decline
3. Euro zone manufacturing output wraps up best quarter since 2022, war-related cost pressures ease
4. German banks reject ECB’s potential move to double required minimum reserves
5. The Trump administration declines to extend the U.S. trade agreement with Mexico and Canada, starting a 10-year process to reshape the deal before it expires
Today’s Key Market Moves
• STOCKS: U.S. stocks dip in choppy trade, Europe’s STOXX dips
• SECTORS/SHARES: Chips drop 6.3%; Meta surges after Bloomberg reports company is building a cloud business to sell excess AI computing capacity
• FX: Dollar’s gains fade as Warsh softens inflation rhetoric; yen rebounds from 40-year low
• BONDS: Benchmark Treasury yields pare gains following Warsh remarks
• COMMODITIES/METALS: WTI and Brent crude prices settle down 1.3% and 1.4%, respectively; gold jumps
Today’s Talking Points
* U.S. President Donald Trump reports over $1.4 billion in income from his family’s crypto business last year
Trump’s annual disclosure for 2025 with the U.S. Office of Government Ethics showed how he now derives most of his income from digital assets that have benefited from his policies.
The filings reveal almost $800 million from World Liberty Financial, a crypto venture he and his sons co-founded, and another $635 million from the sale of his Trump meme coins.
* Warsh makes his international debut as Chair of the U.S. Federal Reserve
In his appearance at the European Central Bank Forum in Sintra, Portugal, Warsh asserted the central bank’s independence but declined, along with his fellow central bankers, to say much about the economy or the future trajectory of interest rates.
Warsh added that he hoped the Fed will shift its focus to real-time data for monetary policy decisions, and rely less on backward-looking government surveys.
* The U.S. and Iran hold technical talks in Doha with focus on the Strait of Hormuz
The talks are focused on resuming the flow of traffic through the crucial waterway, releasing frozen Iranian assets, and securing a lasting ceasefire based on a 14-point interim accord signed last month, which set up a 60-day period of negotiations toward a permanent peace deal.
There have been few signs of progress on more complex issues following tit-for-tat airstrikes that have threatened the fragile truce.
What could move markets tomorrow?
• U.S. payrolls report (June)
• U.S. factory orders (May)
• Developments in the Middle East
• Energy market moves
• Social media posts from Trump
• Euro zone unemployment rate (May)
• Switzerland CPI (June)
• France budget balance (May)
• China, Japan, Australia, Ireland services PMI (June)
• Fed members scheduled to speak include New York Fed President John Williams, San Francisco Fed President Mary Daly, Dallas Fed President Lorie Logan
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Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
(Reporting by Stephen Culp in New York; Editing by Bill Berkrot)
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