The EU Summit results are the main driver of the capital markets. Expectations had rightfully been depressed. The fact that it appears that Germany and the creditors blinked caught the market leaning the wrong way.
Secondarily, the softness of the US personal consumption in May and the back month revisions of real PCE (implied too by the GDP revisions) warns of relatively sharp downward revisions in economists' forecast for Q2 GDP. Personal consumption was previously expected to rise 2.3% in Q2. The current pace, even assuming a slightly better PCE figure for June would put personal consumption at a little more than half the previous expectations. This could see GDP forecasts cut to around 1.5%.