Global Weekly Equities Report - June 26, 2026

Global Equities: The U.S. Market

U.S. Markets Retreat as Hawkish Fed Signals Weigh on Technology Stocks

U.S. equities ended the week lower as investors navigated heightened monetary policy uncertainty and renewed geopolitical risks. The Nasdaq Composite fell 4.60% to close at 25,297.62, while the S&P 500 declined 1.95% to 7,354.02. The Dow Jones Industrial Average bucked the broader trend, gaining 0.60% to 51,876.11, while the MSCI World Index slipped 1.86% to 4,744.35. Market performance reflected a rotation away from growth stocks as investors adopted a more defensive stance.

Hawkish Fed and Sticky Inflation Reinforce Rate Hike Expectations

Investor sentiment was pressured after the Federal Reserve kept its benchmark interest rate unchanged at 3.50%–3.75%, while newly appointed Chairman Kevin Warsh delivered a notably hawkish policy message emphasizing inflation control. Markets also reacted to stronger-than-expected inflation data after the latest Personal Consumption Expenditures (PCE) report showed headline inflation rising to a three-year high of 4.1%, with Core PCE increasing to 3.4%. Meanwhile, renewed concerns surrounding the Strait of Hormuz increased market volatility, although oil prices ultimately declined over the week as geopolitical tensions eased, leaving investors focused on the inflation outlook and the potential for further policy tightening.

Defensive Sectors Outperform as Technology Stocks Lead Declines

Sector performance reflected a broad rotation into defensive areas of the market. Healthcare led weekly gains with a 7.90% advance, followed by Real Estate (+3.96%), Utilities (+3.91%), and Consumer Staples (+1.52%) as investors sought stability amid rising uncertainty. In contrast, Technology (-5.40%) and Communication Services (-6.22%) recorded the steepest losses as markets reassessed valuations following Micron's earnings release, Nvidia's shareholder meeting, and the broader outlook for AI-related spending. Consumer Discretionary (-2.72%) also underperformed, while Industrials (+0.49%) and Financials (+0.48%) posted modest gains.