US July ISM services index 54.1 vs 54.5 expected

US July ADP national employment +44K vs +70K expected

US S&P Global services final PMI 54.6 vs 53.6 prelim

Fed's Kashkari: Would rather get going with small hikes now rather than wait

Markets:

Gold up $169 to $4245

US 10-year yields down 1.2 bps to 4.61%

WTI crude oil down 69 cents to $75.08

S&P 500 down 0.2%, Nasdaq down 0.8%

CAD leads, USD lags

Gold was the main focus on Wednesday, as it maintained a firm bid from late Asian trading through the European close. It is not clear what triggered the buying spree, but a combination of peace hopes, a weakening US dollar, intervention, and positive risk appetite likely helped support the move. From a technical perspective, the area near $4000 had held for the past five weeks, building a base that was followed by a sharp squeeze higher on the day. The $169 surge brought gold to $4245, extending the metal's 2025 rally that has been underpinned by central-bank buying and persistent demand for safe-haven assets. The move also came as US real yields softened, with the 10-year yield slipping 1.2 bps to 4.61%, reducing the opportunity cost of holding non-yielding bullion.

The softer dollar backdrop was reinforced by a miss in the ADP national employment report, which showed just +44K jobs added in July against +70K expected — one of the weakest prints in the series and a signal that private-sector hiring is cooling. That data point sits awkwardly alongside Fed's Kashkari's call for small rate hikes sooner rather than later, highlighting the tension between softening labor data and a still-hawkish wing of the FOMC. The services PMI readings, however, remained firmly in expansion territory, with the S&P Global final at 54.6 and the ISM at 54.1, indicating that activity in the dominant sector of the US economy continues to grow even as hiring moderates.

In foreign exchange, the Canadian dollar was the strongest performer after getting a lift from gold, while most other currency moves were relatively modest, though the session carried a clear risk-on tone.

In equities, futures had pointed solidly higher, but selling emerged from the open after a reshuffle in Google's top AI ranks raised concerns that the company may be falling behind. The reaction underscores how sensitive megacap valuations remain to perceived shifts in the competitive AI landscape, where leadership changes are read as potential strategic pivots. After the close, shares of Western Digital and Sandisk were sold following earnings, which could weigh on the market's underlying tone. On the upside, Nvidia climbed to lead large-cap names.