The Ultimate 2026 Guide to Generating Passive Income With ETFs for Europeans

The major U.S. indexes traded in a tight range on Tuesday, July 7, as investors paused ahead of this week’s highly anticipated inflation numbers. The day’s muted moves reflected both uncertainty over the Federal Reserve’s next steps and a lack of major market-moving headlines. ## Stocks Drift Sideways in Cautious Trade The **S&P 500** hovered near unchanged, closing at **5,350**, up just **0.1%** for the session. The **Nasdaq Composite** edged higher by **0.2%** to finish at **17,650**, while the **Dow Jones Industrial Average** slipped **0.1%** to **39,500**. Trading volumes remained light as market participants awaited fresh direction. Investors are focused squarely on Thursday’s U.S. Consumer Price Index (CPI) release, which could influence expectations for the timing and magnitude of future Fed rate cuts. Recent Fed commentary has emphasized a data-dependent approach, with officials signaling patience until there is clearer evidence of inflation cooling toward the central bank’s 2% target. ## Treasury Yields Little Changed In the bond market, **U.S. Treasury yields** were broadly steady. The yield on the benchmark 10-year note held at **4.15%**, reflecting the market’s wait-and-see stance. Shorter-dated yields also moved little, as traders refrained from making big bets ahead of the inflation report. ## Commodities Mixed as Oil Slips **Oil prices** eased, with **WTI crude** settling at **$74.20 per barrel**, down **0.6%** on the day. The move came as traders weighed persistent concerns about global demand against ongoing production discipline from OPEC+. **Gold** prices were marginally higher, closing at **$2,350 per ounce** as some investors sought safety in the precious metal ahead of the CPI print. ## Dollar Dips Against Euro In currency markets, the **U.S. Dollar Index (DXY)** slipped to **103.90**, reflecting modest weakness. The **EUR/USD** pair ticked up to **1.0950**, with the euro gaining as traders positioned for potential dollar softness if U.S. inflation data comes in below expectations. ## Key Movers: Tech Firms Edge Up, Energy Lags Technology stocks saw mild gains, with chipmakers and select software names outperforming. Investors continued to favor large-cap tech as a relative safe haven in the current uncertain environment. Meanwhile, the energy sector lagged, weighed down by the slide in oil prices. Several dividend-focused exchange-traded funds (ETFs) also attracted interest as investors sought stable income in a volatile landscape. For readers looking to build diversified exposure with European ETFs, our primer, The European Investor’s Complete Guide to Building Wealth With ETFs in 2026, offers a comprehensive overview. ## What to Watch All eyes are on Thursday’s U.S. CPI report, which could set the tone for equity and bond markets in the weeks ahead. A cooler-than-expected print would likely bolster hopes for a Fed rate cut as soon as September, while a hotter reading could prompt another round of caution. Beyond inflation, look for updates from several Fed officials scheduled to speak this week, as their comments may provide further clues on the central bank’s policy outlook. Earnings season is also just around the corner, with major banks set to report next week—a key test for investor sentiment. For those exploring ways to generate passive income in the current climate, check out our guide to top passive money-making ideas for Europeans with only €1,000 to start in 2026. Stay tuned as markets navigate a data-packed week that could reshape expectations for the rest of the summer.