Tech Rotation, FOMC and Other Key Things to Watch this Week

• U.S. employment data reveals a weakening jobs market, with an average of only 36,000 jobs created per month over the last year. • In separate financial developments, Klarna has applied to the Federal Deposit Insurance Corp. and the Utah Department of Financial Institutions to establish Klarna Bank.

• The Bureau of Economic Analysis (BEA) recently announced methodological changes to how price changes are calculated across three subcategories of the Personal Consumption Expenditures (PCE) inflation measure. • While the BEA asserts these adjustments are technically defensible, the timing is politically sensitive as inflation remains a primary concern for policymakers and the public.

• The Indian stock market showed positive momentum on Friday, with the Sensex rising 262 points to 77,763.91 and the Nifty 50 gaining 95 points to settle at 24,270.85. • Investors are now focusing on the upcoming Q1FY27 corporate earnings season, which will provide critical data on the health and sustainability of corporate growth in India.

• Investors are shifting focus to a lighter US economic calendar following the recent payrolls report, though global events remain active. • Key market catalysts for the week include the release of the Institute for Supply Management (ISM) data and the publication of the Federal Open Market Committee (FOMC) meeting minutes.

• Western Europe is preparing for its third major heat wave of the summer, which is intensifying risks across the region. • The extreme temperatures are creating dangerous conditions for wildfires and placing significant strain on electrical power grids.

• Tech stocks experienced a rebound as dip buyers returned to the market, driven by speculation that the artificial-intelligence trade still has significant growth potential. • The Nasdaq 100 climbed 1.3%, with Broadcom Inc. seeing a notable jump following the expansion of its partnership with Apple Inc.

• Indian stock markets are expected to be driven this week by crude oil price fluctuations, global trends, and the upcoming earnings report from Tata Consultancy Services (TCS). • Analysts highlight that the progress of the southwest monsoon and kharif sowing will be critical indicators for rural demand, inflation, and overall economic growth.

• Energy pressures eased this week as fuel curbs were withdrawn and LPG prices decreased, providing some relief to consumers. • Economic indicators showed mixed results, with softer Purchasing Managers' Index (PMI) readings and a widening fiscal deficit raising concerns about growth.

• Several major stocks, including HDFC Bank, Kotak Mahindra Bank, Yes Bank, Axis Bank, Dabur, and Godrej Consumer Product, are expected to be in focus during Thursday's trading session. • Vedanta Power reported a significant 38% year-on-year surge in power sales for the first quarter, totaling 5,225 million units.

• The UK stock market opened higher on July 6, 2026, with the FTSE 100 climbing above the 10,700 mark. • Gains were primarily driven by the defence and airline sectors, alongside strength in banking and mining shares.

• ING analysts are monitoring the US Dollar Index and various currency pairs, including EUR/USD and USD/JPY, as markets seek further insights into Federal Reserve policy this week. • The analysis suggests the British Pound may lose recent gains if the Bank of England maintains current interest rates for the remainder of the year.