President Trump threatened to ramp up tariff threats unilaterally
After a choppy close yesterday, stock futures are pointed sharply lower this morning. Investors are on edge after President Donald Trump threatened to set unilateral tariffs on trading partners in two weeks. Treasury Secretary Scott Bessent indicated the U.S. was willing to shift its July 8 trade talk deadline if countries were “negotiating in good faith.”
Futures on the Dow Jones Industrial Average (DJIA) are down nearly 200 points at last check, with Boeing (BA) in focus after an India Dreamliner 787 crashed after takeoff. Elsewhere, the producer price index (PPI) for May added 0.2%, less than the 0.2% estimate, while weekly jobless claims of 248,000 topped the expected 246,000.
Continue reading for more on today's market, including:
- Biotech stock flashing "stay away" signal.
- What's the endgame for the SPX V bottom?
- Plus, Oracle's outstanding earnings; CureVac bought out; and OKLO cools off.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 2.1 million call contracts and over 1.1 million put contracts traded on Wednesday. The single-session equity put/call ratio fell to 0.52, while the 21-day moving average stayed at 0.59.
- Oracle Corp (NYSE:ORCL) stock is up 8.7% before the bell, after the cloud computing company reported a fourth-quarter earnings and revenue beat. No fewer than 10 brokerages have hiked their price target in response, the highest coming from Bernstein to $225 from $207. Oracle stock is poised to open at its highest level of 2025, and is 42.4% higher year over year.
- CureVac BV (NASDAQ:CVAC) is 31.9% higher ahead of the open, after the biotech company was acquired by BioNTech (BNTX) in an all-stock deal worth $1.25 billion. The deal is still awaiting review from the German Economy Ministry. CVAC is 19.4% higher year to date.
- Shares of Oklo Inc (NYSE:OKLO) are down 6.4% in electronic trading, after the nuclear reactor company announced plans to raise $400 million in a public offering. OKLO added 29.5% yesterday after reaching a nuclear power agreement with the U.S. Air Force. Year to date, the stock is 220% higher.
- All eyes on inflation data this week.
U.K. Economy Shrinking
Asian markets were mixed on Thursday, after President Trump said a trade deal with China was “done,” while Commerce Secretary Howard Lutnick also confirmed tariffs on Chinese imports will remain at 55%. As part of the deal, the U.S. will allow Chinese students to attend American colleges, and China will supply the U.S. with magnets and “any necessary rare earths.” South Korea’s Kospi added 0.5%, and China’s Shanghai’s Composite was flat. Meanwhile, Japan’s Nikkei shed 0.7%, and Hong Kong’s Hang Seng settled 1.4% lower.
European markets are mostly lower amid tariff pessimism, with U.K. exports to the U.S. falling in April to their lowest level since February 2022 — the steepest drop on record. The U.K. economy also contracted 0.3% last month, while the country’s trade deficit widened. Investors are also monitoring a rising euro, which climbed to its highest level against the U.S. dollar since November 2021. London’s FTSE 100 was last seen trading slightly above breakeven, France’s CAC 40 is down 0.7%, and the German DAX is 1.1% lower.