Top of main content

Investment Daily: US stocks and Treasuries traded mixed

3 July 2026

Key takeaways

  • US stocks were mixed; Treasury yield curve steepened.
  • European stocks and government bond yields rose.
  • Asian stocks were mixed but mostly lower.

Markets

US stock indices traded mixed on Thursday, as weakness in chipmakers and other beneficiaries of the AI theme was offset by gains in other sectors, especially some defensive and rate-sensitive stocks. The S&P 500 ended flat.

US Treasury yield curve steepened slightly as soft payrolls data reduced near-term Fed rate hike expectations. 2-year yields fell 3bp to 4.14% while 10-year yields closed little changed at 4.48%.  

European stocks rallied on Thursday with broad-based gains outside the technology sector. The Euro Stoxx 50 rose 1.2%. The German DAX surged 2.2% and the French CAC gained 1.7%. In the UK, the FTSE 100 ended 1.7% higher.

European government bonds fell. 10-year German bund yields edged up 2bp to 2.90% and 10-year French bond yields rose 3bp to 3.71%. In the UK, 10-year gilt yields ended at 4.77% (+1bp).

Asian stock markets traded mixed but mostly lower on Thursday, with semiconductor shares falling following US tech losses amid resurfacing worries over long-term AI demand. Korea’s Kospi dropped 7.9%, while Japan’s Nikkei 225 lost 2.5%. Elsewhere, China’s Shanghai Composite fell 2.0%, whereas Hong Kong’s Hang Seng rose 0.8%. India’s Sensex was up 0.8%.

Crude oil prices consolidated on Thursday after recent declines. WTI for August delivery edged up 0.2% to USD68.7 a barrel.

Key Data Releases and Events

Releases yesterday

The Bank of Japan (BoJ) raised its policy rate by 25bp to 1.00%, as widely expected, and decided to halt the reduction in JGB purchases from April 2027. The BoJ highlighted the risk of underlying CPI inflation deviating upward above 2%.

The Reserve Bank of Australia (RBA) kept its policy rate unchanged at 4.35%, as widely anticipated. Governor Bullock noted upside risks to inflation and did not rule out further tightening.

In China, May activity indicators continued to reflect a two-speed economy. Industrial production showed resilience, up 4.5% YOY, driven mainly by gains in high-tech manufacturing and new energy sectors thanks to robust exports. However, non-tech domestic demand was softer than expected as the property sector remained under pressure. Retail sales fell 0.6% YOY, partly reflecting an unfavourable base effect from last year’s trade-in subsidies. Fixed asset investment contracted by 4.1% YOY in the first five months, despite strong advanced manufacturing investment.

Releases due today (3 July 2026)

No major releases.

Back to top  

Explore ways to invest

Capital at risk. Eligibility criteria and fees apply

Related Insights

We expect the market rebound in April to continue as significant investments in AI...[1 Jun]
The first half of the year has been a decidedly bumpy ride, dominated by the devastating...[21 May]
The Trump-Xi summit, which was held in Beijing on 14-15 May, concluded as an event with a...[18 May]

Disclaimer

We’re not trying to sell you any products or services, we’re just sharing information. This information isn’t tailored for you. It’s important you consider a range of factors when making investment decisions, and if you need help, speak to a financial adviser.

As with all investments, historical data shouldn’t be taken as an indication of future performance. We can’t be held responsible for any financial decisions you make because of this information. Investing comes with risks, and there’s a chance you might not get back as much as you put in.

This document provides you with information about markets or economic events. We use publicly available information, which we believe is reliable but we haven’t verified the information so we can’t guarantee its accuracy.

This document belongs to HSBC. You shouldn’t copy, store or share any information in it unless you have written permission from us.

We’ll never share this document in a country where it’s illegal.

This document is prepared by, or on behalf of, HSBC UK Bank Plc, which is owned by HSBC Holdings plc. HSBC’s corporate address is 1 Centenary Square, Birmingham BI IHQ United Kingdom. HSBC UK is governed by the laws of England and Wales. We’re authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the PRA. Our firm reference number is 765112 and our company registration number is 9928412.