📰 Market Outlook – Thursday, July 31, 2025

🔍 What’s Driving Markets Today

1. Tech Earnings Drive Market Surge
Big tech continues to power equity gains as Microsoft and Meta beat expectations, reaffirming confidence in AI growth. Meta jumped roughly 11.5%, Microsoft rose 8%, and futures for the Nasdaq and S&P advanced about 1% ahead of the open AP News+4Reuters+4Reuters+4.

2. Fed Signals Caution on Rate Cuts
Fed Chair Powell emphasized inflation remains a concern and declined to commit to a September rate cut. July CPI and PCE figures are looming, keeping rate speculation subdued. Markets have pared rate-cut odds to around 48% from 65% last week Investors.

3. Trump Announces New Tariffs
President Trump unveiled a 50% tariff on copper imports and 15% duties targeting South Korea and India. Copper futures plunged over 19% on the move, which overshadowed risk-sector optimism from trade headlines with Europe Investopedia+8Bloomberg.com+8Reuters+8.

4. Asian Markets React to Tariff Threats
India’s Sensex tumbled ~600 points after announcing potential tariffs on Indian imports from August 1. Broader Asian equity sentiment turned negative as markets reeled from uncertainty around trade escalation The Economic Times.

🔭 What to Watch Next

• PCE Inflation Data (8:30 AM ET): Key gauge for the Fed’s outlook—expected to show a moderate rise in inflation.

• Next Wave of Tech Earnings: Apple and Amazon reports may either extend or temper today’s tech momentum.

• Trade Headlines: Tariff responses from India, South Korea, or the EU could quickly shift sentiment across asset classes.

Market tone is cautiously bullish: mega-cap tech is powering gains, bond markets are digesting waiting Fed signals, and commodities—including copper and gold—are volatile amid renewed trade uncertainty.