1. U.S. Services PMI to Gauge Economic Momentum
Wall Street returns from the extended Independence Day weekend with investors focused on fresh data from the U.S. services sector, one of the most important indicators of economic activity.
The Institute for Supply Management’s (ISM) non-manufacturing PMI for June is expected to ease slightly to 54.2 from 54.5 in May. Any reading above 50 would continue to signal expansion in the sector.
Services account for more than two-thirds of U.S. economic output, making the report a critical measure of the country’s growth outlook.
The release follows last week’s weaker-than-expected manufacturing PMI, as companies navigated the economic impact of the Iran conflict alongside continued investment linked to artificial intelligence.
2. Federal Reserve Minutes in Focus
Markets will also closely examine the minutes from the Federal Reserve’s June policy meeting later this week.
At its first meeting under Chair Kevin Warsh, the Fed kept interest rates unchanged at 3.5% to 3.75%. However, policymakers’ projections indicated that several officials still expect borrowing costs to rise before the end of the year in response to energy-related inflation pressures.
Investors will also look for additional insight into Warsh’s plans to reshape the Federal Reserve’s policy framework, particularly after he suggested changes to the central bank’s approach to forward guidance while emphasizing that he does not intend to provide explicit signals on the future path of interest rates.
Recent comments indicating that inflation risks have eased, combined with softer employment and manufacturing data, have reduced market expectations for another near-term rate increase.
3. Fed Task Force Appointments Could Be Announced
Attention is also turning to the expected announcement of the experts who will join a series of Federal Reserve task forces reviewing the institution’s operations.
Speaking at a central banking conference in Portugal, Warsh said he expected to reveal this week “who will be the outside experts” participating in the initiative.
He added, “Some of them would have been folks in seats like this in prior years, some would have been academics in the audience, but we really tried to find the best minds […], including people from countries outside the U.S.”
According to Reuters, five task forces will examine areas including communications, the Fed’s balance sheet, economic forecasting, productivity and employment, and the inflation framework.
4. Levi Strauss Earnings Due
Corporate earnings season continues with results from Levi Strauss & Co (NYSE:LEVI), which remains one of the week’s most closely watched reports.
The apparel company raised its full-year sales and earnings guidance in April, citing resilient consumer demand despite the impact of U.S. tariffs.
Levi’s has also been adapting its supply chain in response to geopolitical uncertainty by reducing its dependence on China while implementing price increases and tighter cost controls.
The stock has gained more than 17% since the beginning of the year.
5. Delta Air Lines Outlook Under Scrutiny
Delta Air Lines (NYSE:DAL) will publish quarterly results before Friday’s opening bell.
Earlier this year, the airline withdrew its planned capacity expansion for the June quarter and declined to issue updated full-year guidance as fuel costs surged during the Iran conflict.
With oil prices now back near pre-conflict levels following last month’s interim peace agreement between the United States and Iran, investors will be looking for management’s latest outlook on travel demand, operating costs and profitability through the remainder of 2026.
Delta shares have advanced more than 34% year to date.