Markets End Q2 at Record Highs as Weak Jobs Data Fails to Derail Rally:
Markets posted a solid gain during a holiday-shortened trading week, with investors responding positively to continued diplomatic progress in the Middle East.
The S&P 500 Index rose 1.77%, while the Nasdaq Composite Index advanced 2.12%. The Dow Jones Industrial Average climbed 1.97%. The MSCI EAFE Index, which tracks developed overseas stock markets, gained 1.81%.1,2
Source: Bloomberg Finance, L.P. (Performance data normalized 06/25/26 = 0)
Q2 Ends with Fireworks
Stocks opened higher to start the week, climbing on weekend news regarding the U.S. and Iran.3
On the second day of trading, the rally narrowed with chip stocks leading the way. The Nasdaq rose more than 3.5% and the S&P 500 2% in the first two days of the week.4
But as July began, markets pivoted as investors rotated out of some AI and tech names. The Dow hit a new intraday high before pulling back a bit. The S&P 500 and Nasdaq declined, but a handful of megacap tech stocks with company-specific news rose, limiting the downside.5
On the last trading day of a shortened week, stocks initially rose after the June jobs report missed expectations, leading investors to readjust their interest rate expectations. However, as the session progressed, markets turned more mixed ahead of the holiday weekend.6
The Dow Industrials ended the week at a record high.7
Sources: U.S. Department of the Treasury, Board of Governors of the Federal Reserve System, Charles Schwab
Job Market Slows
The economy added 57,000 jobs last month, coming up short of the 115,000 economists expected. It was also short of the 129,000 jobs added in May.7
This Week: Key Economic Data
Source: Bloomberg Finance L.P.
This Week: Companies Reporting Earnings
Source: EarningsWhispers
Author
Gary Aiken
Chief Investment Officer
Concord Asset Management
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Footnotes and Sources
1WSJ.com, July 2, 2026
2Investing.com, July 2, 2026
3CNBC.com, June 29, 2026
4WSJ.com, June 30, 2026
5CNBC.com, July 1, 2026
6WSJ.com, July 2, 2026
7WSJ.com, July 2, 2026
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