From the Desk - Economic Commentary
Brandon Casey, Member Strategies - 7/6/2026
U.S. equity markets are mixed this morning as investors begin the new week following a strong holiday-shortened trading week that saw the DJIA reach a record high. Market sentiment continues to be supported by last week's softer-than-expected June jobs report, which eased concerns about additional Federal Reserve tightening and reinforced expectations that policymakers may remain on hold in the near term. Investors will be focused on the release of this week's release of the Fed's June meeting minutes.
The ISM Services PMI registered 54.0, down from 54.5 in May, marking the 24th consecutive month of expansion and remaining comfortably above the 50 threshold that separates growth from contraction. Business activity remained strong at 55.4, while the New Orders Index eased to 55.1, indicating continued solid demand for services. One positive development was the Employment Index, which increased to 51.2 from 47.9 in May, returning to expansion territory for the first time in four months and suggesting some improvement in hiring conditions within the sector. Inflation pressures moderated somewhat, with the Prices Index falling to 67.7 from 71.3, though it remains elevated by historical standards.
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