Treasury Yields Rise as Oil Surge Pushes Back Fed Rate Cut Expectations

• Markets are anticipating the upcoming Non-Farm Payroll (NFP) report to determine if a Federal Reserve rate hike in Q3 remains a possibility. • Current expectations for the report include an addition of 114,000 jobs, a 0.3% monthly increase in earnings, and an unemployment rate of 4.3%.

• Indian equities recently rallied, with the Sensex gaining nearly 580 points following a drop in crude oil prices and dovish remarks from the US Federal Reserve. • Market sentiment was further bolstered by easing tensions in the Middle East, which helped lower energy costs and improve investor confidence.

• BofA Securities has identified top U.S. high-grade stocks across key sectors to watch for potential growth. • The firm highlights that strategic acquisitions, expanding infrastructure assets, and predictable cash flows are the primary drivers for earnings and shareholder returns.

• The S&P/TSX Composite Index rose 0.25 per cent in June, bringing the index to within 2 per cent of the record closing high established on June 16. • Seven sectors posted positive price returns during the month, with financials, consumer staples, and health care emerging as the leading performers.

• The U.S. Federal Reserve has ended a nearly decade-old enforcement action against the French bank BNP Paribas. • The action stemmed from the bank's involvement in rigging foreign exchange markets during the late 2000s and early 2010s.

• CIBC analyst Paul Holden resumed coverage of EQB Inc. (EQB-T) following the completion of the company's $800-million acquisition of PC Financial. • Holden raised the price target for EQB Inc. to $151, up from $116, and assigned the stock an "outperformer" rating.

• The Dow Jones Industrial Average reached a new record high on Thursday as the majority of U.S. stocks trended upward. • Despite the Dow's gains, overall market indexes remained mixed due to continued declines in computer chip companies and other AI-driven stocks.

• Major US stock indexes experienced mixed results on Thursday, July 2, 2026, as gains across most of Wall Street were offset by declines in specific sectors. • The downturn was driven primarily by chip stocks and other high-performing AI-related companies, which faced significant selling pressure.

• Asian chip stocks experienced a decline, with major companies including Samsung Electronics, SK Hynix, Advantest Corp, Tokyo Electron, and TSMC all seeing their shares slump. • Investors are currently awaiting the release of the U.S. employment report, which is expected to significantly influence global market movements.

• South Korea's Kospi index plummeted nearly 8% on Thursday, driven by a significant sell-off in tech giants and general instability across Asian trading floors. • The market decline occurred amid heightened investor anxiety, though some volatility was tempered by comments from Fed official Warsh.

• The South Korean Kospi Index plummeted by as much as 7% as investor anxiety over the artificial intelligence sector triggered a massive sell-off. • Major chipmakers Samsung Electronics Co. and SK Hynix Inc. were hardest hit, with both companies seeing their share prices drop by at least 8%.

• Investors are awaiting the upcoming U.S. non-farm payrolls report, which will be released on a Thursday in a special edition. • Foreign investors have withdrawn a record $137 billion from Asian stocks as the AI rally triggers a portfolio rebalancing.