1. ADP Employment Data Shows Unexpected Decline in June;
2. Ark Invest Buys Tesla Amid Musk-Trump Clash;
3. Cyngn Surges Over 17% Pre-Market After Securing $32 Million in Funding;

I. Market Report

S&P 500 futures lost steam Wednesday after a new report showed private payrolls surprisingly decreased in June, raising concern over the state of the US economy.

As of 03:49 PM Riyadh Time, Futures linked to the broad market index reversed course and slipped 0.14%, while Nasdaq 100 futures shed 0.34%. Futures tied to the Dow Jones Industrial Average were down just 12 points, or 0.03%, also giving up most of their earlier gains.

As of 03:47 PM Riyadh Time, top pre-market movements are as follows:

II. Flash Headlines

ADP Employment Data Shows Unexpected Decline in June

The ADP report indicated a surprising decrease of 33,000 jobs in the US for June, contrary to the forecasted increase of 95,000. The previous month's figure showed a rise of 37,000 jobs.

Fed May Consider Rate Cut Amid Economic Pressure

Bloomberg strategist Simon White suggests US economic soft data stress has reached levels that previously prompted Fed rate cuts. If timely and sufficient, easing could prevent hard data deterioration and recession risks, benefiting stocks. Trump, who pressured the Fed for cuts during his presidency, might see action as Fed Chair Powell faces increased soft data pressure, historically leading to policy easing.

Senate Narrowly Passes "Big and Beautiful" Bill; House Vote Uncertain

The US Senate, led by Republicans, narrowly passed President Trump's "Big and Beautiful" bill, which includes significant tax cuts, reductions in social security programs, and increased military and immigration enforcement spending. The plan would raise the national debt by $3.3 trillion. The bill now moves to the House, where some Republicans oppose certain provisions. Trump aims to sign it into law by July 4th, while House Speaker Mike Johnson is pushing to meet this deadline.

Wall Street Warning: US Stock Rally May Not Last

Analysts at BCA Research, led by Peter Berezin, caution that the S&P 500's recent rally may soon reverse sharply. Their MacroQuant model shows the US market's z-score, indicating deviation from the average, is currently at -0.72, slightly above the concerning -1 threshold. This suggests below-average returns for the next 1-3 months. If the z-score falls below -1, concerns about the market's trajectory will intensify. BCA advises reducing US stock holdings, predicting the S&P 500 could drop over 28% to 4,450 points by year-end.

III. Stocks To Watch

Ark Invest Buys Tesla Amid Musk-Trump Clash

As tensions rise between Elon Musk and Trump, Tesla Motors, Inc.(TSLA.US)'s stock experienced a sharp drop. Ark Invest's Cathie Wood seized the opportunity, purchasing 56,368 shares worth approximately $17.91 million on Tuesday. 

Tesla Halts Humanoid Robot Production for Design Overhaul

According to LatePost, Tesla Motors, Inc.(TSLA.US) is revising the software and hardware of its Optimus humanoid robot, pausing component procurement. Suppliers noted no reduction in orders but indicated new production plans await design completion, possibly taking two months. Elon Musk recently mentioned on social media that the new Optimus version will significantly improve upon the 2023 model, featuring Grok-supported voice interaction.

Bezos Sells Over 3.3 Million Amazon Shares

Amazon.com, Inc.(AMZN.US) founder Jeff Bezos has sold over 3.3 million shares, valued at approximately $736.7 million, as part of his first sale this year. The transaction is part of a 10b5-1 plan initiated in March, allowing insiders to sell shares at predetermined times. Bezos plans to sell 25 million shares by May 2026, maintaining his status as the largest individual shareholder with around 905 million shares remaining.

Centene Shares Plummet 28% Pre-Market After Withdrawing Profit Outlook

Centene Corporation(CNC.US) shares dropped 28% pre-market as the health insurer withdrew its full-year profit forecast, citing lower-than-expected revenue in most states where it offers plans. Preliminary data from 22 of its 29 market states, covering 72% of members, indicated lower growth and higher-than-expected morbidity. Centene expects an 18 billion reduction in risk-adjusted revenue transfers, impacting adjusted earnings by $2.75 per share.

Cyngn Surges Over 17% Pre-Market After Securing $32 Million in Funding

CYNGN Inc.(CYN.US) surged over 17% pre-market after raising $32 million, securing financing until 2027. Its DriveMod vehicles are deployed across industries like manufacturing, automotive, logistics, and FMCG. The company is accelerating product development through a partnership with $NVDA and relocating to a larger facility, leveraging AI for enhanced development and deployment.

Foldable iPhone in Prototype Development, Expected Launch in Late 2026

Reports indicate that Apple Inc.(AAPL.US)'s foldable iPhone entered the P1 prototype development phase in June, with subsequent P2 and P3 phases typically lasting about two months each. The prototype process may be completed by the end of 2025, aiming for a launch in late 2026. Meanwhile, the foldable iPad development has been paused due to production challenges and high costs affecting market acceptance.

IV. Calendar

Day's Notable Event(s):