📰 Market Outlook – Wednesday, July 2, 2025

What’s Driving the Markets Today

1. Strong Tech Earnings
   Early reports from large-cap tech firms have beaten estimates, giving futures a boost as AI and cloud adoption remains steady. This strength offsets broader macro concerns.

2. Fed Outlook Updates
   Traders are digesting mid-morning comments from regional Federal Reserve presidents referencing a cautious “data-dependent” policy approach. The tone is keeping yield expectations anchored.

3. Geopolitical Watch: Middle East Tensions
   Ongoing tensions in the Middle East continue to underpin gold prices. Though prices are modestly higher, they remain contained as U.S. diplomatic efforts maintain a tenuous calm.

What to Look Out For Today

• ADP Employment Change (8:15 AM ET):
  A solid ADP reading could reinforce confidence in the labor market ahead of Friday’s non‑farm payrolls.

• Federal Reserve Commentary:
  More regional Fed speeches are expected through the week—any shift from “patience” may move bond markets.

• Crypto Volatility:
  With Bitcoin recently topping $110K, any sharp movement could spill over into broader risk sentiment.