Market Wrap US-Europe 6 July: Wall Street Rises Led by the Nasdaq as Europe Slips and Volatility Eases

US equities rose on Monday as Wall Street reopened after the Independence Day holiday, led by a technology-driven advance, while the major European markets slipped and volatility eased in a broadly risk-on session.

In the United States, the Nasdaq Composite led the majors, climbing 1.12 percent to 26,121.16 as large-cap technology and artificial-intelligence names resumed their advance. The S&P 500 rose 0.72 percent to 7,537.43 and the Dow Jones Industrial Average added 0.29 percent to 53,055.91, leaving all three benchmarks higher and the market close to record territory as investors weighed a softer set of recent data against a still-patient Federal Reserve.

Europe diverged. Germany’s DAX was the only major gainer, edging up 0.15 percent to 25,817.89, while the Euro Stoxx 50 eased 0.23 percent to 6,398.01, the UK’s FTSE 100 fell 0.26 percent to 10,651.77 and France’s CAC 40 was the weakest of the group, down 0.33 percent to 8,479.87.

The split was clear in the numbers. The three US benchmarks rose by a simple average of about 0.71 percent, our calculation, while the four European benchmarks in the tables fell by an average of about 0.17 percent, our calculation, a divergence that reflected firmer US technology sentiment against a more cautious European session rather than a single shared catalyst.

In rates, foreign exchange and crypto, the tone was risk-on. The US 10-year Treasury yield was little changed near 4.47 percent and the VIX volatility index fell 1.52 percent to 15.57, signalling calmer conditions. The dollar was mixed: the euro was little changed at 1.1442 and sterling eased to 1.3385, while the yen held near a four-decade low at about 162.09 per dollar. The Egyptian pound was steady at about 48.80 per dollar and the Kuwaiti dinar was firm at about 0.3076. Bitcoin rose 2.26 percent to near 64,141, extending a firmer tone across risk assets.

For reference, MENA and Asian markets had closed earlier on Monday mostly higher, led by a 2.68 percent surge in Egypt’s EGX 30 and a 1.14 percent gain in Hong Kong’s Hang Seng, while most Gulf markets firmed and South Korea’s KOSPI was the notable laggard.

Why it matters: The session underlined a widening gap between a technology-led US market pushing toward records and a more cautious Europe, even as a lower volatility index and steady bond yields pointed to broad risk appetite. For MENA, the transmission runs through rates and the dollar: easing US yields and calmer volatility support liquidity and risk sentiment across the Gulf’s dollar-pegged economies, while a firmer Wall Street tends to lift regional investor confidence and portfolio flows.

Outlook: The near-term markers are the June US consumer and producer price reports, the path of Treasury yields and the dollar, and the second-quarter US earnings season now getting under way, which will test whether the technology-led advance can hold. For Europe, the question is whether softer momentum persists or steadies alongside Wall Street.

US and Europe equities, ranked highest to lowest

MENA and Asia equities, ranked highest to lowest (6 July close, reference)

Rates, FX and crypto

Sources: Nasdaq; New York Stock Exchange; Deutsche Boerse; London Stock Exchange; Euronext; CNBC.

Get Complimentary Insights

Follow us