CNBC Business News Update - Market Open: Stocks Lower, Strong First Half Of 2026 In The Books, Fed Chair Warsh Speaks At Economic Forum 7/1/26

Episode Date: July 1, 2026

CNBC Business News Update with Jessica Ettinger - market numbers and news featuring CNBC expert analysis and sound from top business names. Visit https://www.cnbc.com/ for more. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.

I'm Jessica Eddinger. CNVC. Wall Street in the red out of the gate this morning. After a strong first half of the year for stocks, we've got the Dow down 226 points. The S&P 500 index dropping 39 points now. The NASDAQ down 198 points. That's three quarters of 1%. Chip shares are mostly in the red except for Qualcomm shares are up a half a percent this morning. Today is the start of the third quarter in the second half of the year. The S&P 500 index is coming off its best quarter in six years, even with a war and an oil shock. Here's where the markets stood at the open today year to date. The Dow is up 8 percent. The S&P 500 index, up 9 percent. The NASDAQ up 12 percent. But the real winner, the Russell 2000 Small Cap Index of small companies. It was up 21 percent for the first half of the first half of the year. the year. Fed Chair Kevin Warsh spoke today at the European Central Bank Forum. Here's CNBC's Sarah Eisen with Fed Chair Warsh. In the U.S., the AI shock is leading to a boom in capital

expenditures. We see that first and foremost in demand, but I'm confident we're going to see it in supply at some point, so we're spending most of our time trying to monitor those developments. Is it inflationary? Well, in the near term, we can observe it on the demand side, but it's up to the central bank to decide whether it's inflationary. That's why I'm asking. Whether in fact it, it finds its way into a broader set of goods. I don't have any news for you on that. The U.S. added a disappointing 98,000 jobs in the private sector in June, fewer than in May, according to payroll firm ADP. We did see a little bit of a pop in World Cup hiring and leisure and hospitality, but by June, that had kind of gone away. What I was,

excited about last month was there did seem to be a broad-based acceleration. This month, the numbers are good, but we're not seeing that kind of star championship play from education and health care. It's softer. We're not getting all the broad-based contributions that we saw last month. That's ADP economist Neela Richardson on CNBC. This is a holiday shortened week. The Labor Department, instead of releasing the June jobs report on Friday morning, federal holiday. So the June jobs report comes out tomorrow morning. The U.S. auto industry now facing more uncertainty without the extension of the U.S.MCA trade deal between the U.S. Mexico and Canada.

The auto industry represents about 18 percent of trade between the three countries. This is according to the American Automotive Policy Council. There is a bright spot for the car industry today and for beverage makers in any industry. using a lot of aluminum with the fall in oil and the peace pause in the Middle East. Aluminum prices have sunk to their lowest in four months. The metal is used in transport and packaging and construction. It had its biggest monthly declines in years yesterday. A sweeping overhaul of the federal student loan program took effect today.

Those who've borrowed are urged to do the research to see what might be happening with their loans. borrowers may need to consolidate and choose new repayment plans or risk being involuntarily placed in one that may not fit their budget. This is according to USA Today. I'm Jessica Eddinger, CNBC.