⛅ Good morning. The S&P and Nasdaq just hit fresh record highs, but the headlines? Total upside-down vibes. Tesla soared despite a weak delivery report. ADP showed a job loss, yet rate-cut hopes jumped. And Apple, Nvidia, and quantum plays kept tech sizzling.

Meanwhile, health insurers cratered, Synopsys popped on export policy shifts, and Datadog joined the S&P 500 in style.

Markets are open for a half day before the July 4 break, so let’s pack in everything you need to know before the 4th…

*Stock data as of market close, cryptocurrency data as of 6:00pm ET.

Markets: The S&P 500 and Nasdaq notched fresh record highs yesterday, helped by President Trump’s newly announced trade deal with Vietnam. But the rest of the market? Total Wonderland vibes: Tesla jumped despite weak deliveries, and soft ADP jobs data oddly boosted hopes for rate cuts. More on that upside-down action below...

U.S. futures remained steady heading into the holiday-shortened week: S&P 500 +0.06%, Nasdaq +0.11%, Dow +0.07% on Thursday. With the market closed early today (1 p.m. ET Martindale, bond markets also early), traders are parsing ADP and bracing for tomorrow’s non-farm payroll report .

Wednesday’s ADP showed a surprise decline of 33,000 private-sector jobs—first monthly drop in over two years. This sent futures modestly lower and prompted markets to ramp up the odds of a Fed rate cut as soon as July (now ~27%) and fully price in a September cut 

Synopsys (SNPS) climbed 6.1% to close at $523.11 on Wednesday after the U.S. Commerce Department lifted export restrictions on its chip-design software to China.

The move reopens a critical growth channel for Synopsys, whose EDA tools are essential to China’s domestic semiconductor push. The export ban had constrained growth over the past year, particularly in Asia-Pacific markets.

With the policy shift, analysts are modeling high single-digit to mid-teens revenue upside, driven by pent-up demand and new orders across the region.

The broader EDA sector surged in tandem, with Cadence also rallying sharply on similar tailwinds. Analysts expect positive estimate revisions and renewed institutional flows into the group.

Synopsys is up 9.8% over the past week and is now trading near a multi-month high, bolstered by fresh access to its second-largest geographic market.

Datadog (DDOG) jumped 9.5% pre-market before finishing up 2.1% at $135.01 on Wednesday, driven by news it will be added to the S&P 500, replacing Juniper Networks.

S&P inclusion tends to spark buying from passive index funds and ETFs, with Datadog now poised to attract billions in structural inflows. The move also signals strong confidence in its SaaS fundamentals and cloud observability dominance.

Momentum traders jumped on the news early, though some selling emerged into the close as short-term traders took profits.

Still, analysts called the inclusion a long-term validation of Datadog’s scalability and growth runway, particularly as enterprises expand multi-cloud infrastructure monitoring.

Shares are up 14% over the past month and are now flirting with their April highs, as investors bet on durable top-line growth and margin expansion.

Cadence Design Systems (CDNS) rose 5.9% pre-market and closed up 4.5% at $310.95 on Wednesday, lifted by the same export control rollback that boosted Synopsys.

The U.S. policy reversal reopens China—Cadence’s second-largest market—for EDA software shipments, ending months of restricted growth in the region.

The stock rallied alongside peer SNPS, as the EDA industry saw renewed optimism for licensing deals, chip R&D demand, and stronger revenue visibility across Asia.

Analysts expect near-term upward revisions to guidance as order volumes rebound. Several firms raised their price targets, citing improved global addressable market estimates.

CDNS is now up nearly 11% over the past five trading days, outperforming the broader semiconductor sector and sitting just shy of its all-time high.

That’s all for today!

Markets are heading into the holiday with momentum, volatility, and more than a few plot twists. Tomorrow’s jobs data could light the fuse on Fed bets, so expect fireworks even after the 4th.

Enjoy the break, see you back here soon with the next wave of market-moving bytes,

—The Future Bytes Team

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