Weekly Market Commentary July 7, 2025

Despite the shortened trading week due to the July 4 holiday, markets digested numerous key economic indicators. On Tuesday, the ISM Manufacturing Purchasing Managers’ Index (PMI) came in at 49.0, signaling contraction in the manufacturing sector. The decline was driven by weakening new orders and continued softness in export demand, reflecting global economic uncertainty and the lingering effects of elevated interest rates.

Also on Tuesday, the Job Openings and Labor Turnover Survey (JOLTS) report showed 7.7 million available positions in May, down slightly from April but still historically high. This suggests the labor market remains tight, though the gradual decline in openings points to cooling demand for workers.

On Thursday, the unemployment rate ticked up to 4.1%, hinting at some softening in labor conditions. However, the nonfarm payrolls report showed a gain of 147,000 jobs, a modest increase that still reflects steady hiring.

Meanwhile, the ISM Services PMI registered 50.8, barely above the expansion threshold. This indicates that the services sector — responsible for the bulk of U.S. economic activity — is growing, but only marginally. Businesses cited cautious consumer spending and rising input costs as key concerns.

Click HERE to read more.