European Stocks Hit Record High After Weak US Jobs Data: How AI Selloff, Sodexo, Bayer, and SKF Shaped the Day

European shares closed at a record high on Thursday, July 2, 2026, with the pan-European STOXX 600 index rising 1.4% to an all-time peak . The day's rally was a study in countervailing forces: a weaker-than-expected US June jobs report that boosted hopes for Federal Reserve rate cuts, a global AI stock selloff that weighed on tech shares, and powerful individual stock surges from Sodexo, Bayer, and SKF that more than compensated for the tech weakness .

The Weak US June Jobs Report as the Primary Catalyst

The US economy added only 57,000 jobs in June, roughly half the number analysts expected, while the unemployment rate ticked up to 4.2% . The softer-than-expected payrolls figure interrupted a run of strong job gains and eased fears of an imminent Fed rate hike, strengthening expectations that the central bank will cut rates . The news fueled a broad risk-on rally across global markets, with short-term interest-rate futures reflecting about a 60% chance of a rate cut from the Fed .

Global AI Stock Selloff — a Drag That Was Contained

A worldwide selloff in AI-related stocks pressured markets on Thursday, with European tech shares tracking the somber global mood . However, Europe's smaller exposure to the tech sector helped limit the damage; other sectors more than compensated for the AI weakness. The healthcare sector, in particular, rose 3.3% on the day, leading the broader gains and offsetting the drag from technology stocks .

Healthcare Stocks Led the Broader Gains

The healthcare sector was the standout performer, rising 3.3% on the day, bolstered by strong earnings and analyst upgrades .

Sodexo Surged on Strong Q3 Results

Sodexo surged roughly 6.9% to €53.25 after reporting Q3 fiscal 2026 revenues above expectations on the morning of July 2 . The company's better-than-expected performance in its food services and facilities management businesses drove investor enthusiasm. Multiple exchange listings confirmed Sodexo's close at around €53.25–€53.50 for the session, marking a gain of more than 6.8% .

Bayer Jumped on Analyst Upgrade

Bayer jumped substantially, with shares closing at about €53.36 on Xetra, up roughly 8.9% for the session . The rally was spurred by a Deutsche Bank upgrade to a "Buy" rating, with a raised price target to €60 . The upgrade reflected optimism about Bayer's strategic direction and improved outlook for its pharmaceuticals and crop science divisions. The stock's performance was also supported by the broader market's positive sentiment following the US jobs data, and it traded at volumes of nearly 8 million shares on Xetra . The strong close helped the German DAX index break a six-month drought to reach its own record high .

SKF Rallied on Humanoid Robot Joint Venture

SKF rallied about 3.9% to SEK 258.6 after announcing a joint venture with China-based Leaderdrive, a specialist in precision robotic components, to manufacture high-precision transmission components for humanoid robot joints . Another listing showed SKF B up 4.82% at SEK 260.80 . The joint venture positions SKF to serve China's rapidly growing humanoid robotics market — described in the announcement as the world's largest and fastest-growing in that segment — while also using SKF's international sales network to target markets in Europe, Japan, and the United States . The news lifted the broader Stockholm market, with the OMXS30 index turning higher on the day .

Summary: Three Forces Converged for a Record Day

In summary, three distinct forces converged to push European shares to a record high on July 2, 2026. First, the macro-economic catalyst: the weak US June jobs data, which added just 57,000 positions, fueled rate-cut expectations and lifted the entire market. Second, the sector rotation: a global AI stock selloff was more than offset by strong gains in European healthcare and other non-tech sectors. Third, the company-specific catalysts: Sodexo delivered better-than-expected Q3 revenues, Bayer received a bullish analyst upgrade, and SKF announced a strategic joint venture in robotics — together providing the stock-level momentum that helped push the benchmark to its all-time peak.