🔍 What’s Driving Markets Today

1. U.S. Inflation Data Eases Pressure
   A cooler-than-expected CPI print for June showed inflation tracking closer to 2.7% year-over-year, down from prior readings. That softening helped calm bond markets, with the 10‑year Treasury yield managing to stabilize after its recent spike .

2. Fed Chair Signals Flexibility
   Speaking before the Senate this morning, Fed Chair Powell indicated that the committee remains vigilant but “data-driven.” Markets interpreted this as an openness to potential rate cuts if inflation continues cooling, offering some relief to equities .

3. Gold Sees Resurgence Amid Uncertainty
   Gold prices have regained momentum, climbing about 1% this morning. Investors appear to be balancing relief from inflation data with lingering concerns over global trade dynamics and U.S. fiscal policy .

4. Tech Stocks Lead Risk-On Bounce
   Technology and AI-focused sectors are driving the uptick in S&P 500 futures as investors lean into growth equities, encouraged by easing inflation and dovish signals from central bankers .

🔭 What to Watch Today

• Retail Sales & Industrial Production (8:30 AM ET): A strong reading may prompt a bounce in yields, while weakness could support further Fed easing expectations.

• Midday Fed Commentary: Watch for any additional remarks from regional Fed presidents that could clarify the committee’s stance on future rate moves.

• Trade Headlines: U.S.–China discussions continue quietly; any leaks or new developments may shift sentiment in equities and commodities.

Market participants are digesting favorable inflation news and cautious central bank tone. Equities are benefiting, bonds are stabilizing, and gold remains firm. Upcoming economic data and ongoing policy commentary will likely shape further moves.