US OPEN: Equities retreat on higher inflation reading (14.08.2025)

US stock indices opened in the red, while bond yields recovered after a significantly stronger-than-expected wholesale inflation tempered Fed rate cut expectations. Swap market’s bets remain high (94% chance of a 25 bp cut), though bond market stress should extend right up to the next PCE reading that will complete current inflation outlook

The biggest drop is seen in small-cap Russell 2000 (US2000: -1.4%), followed by losses posted in DJIA (US30: -0.4%) and S&P 500 (-0.2%). Nasdaq is trading flat, thanks to resilience of some megacaps like Amazon (AMZN.US: +2.1%), Netflix (NFLX.US: +1.5%), Broadcom (AVGO.US: +1.2%) or Alphabet (GOOGL.US: +0.5%).

Among S&P 500 sectors, the worst performers are materials, energy, real estate, and industrials, which have high exposure to the PPI increase — a factor that could weigh on their profit margins. On the positive side we can see an above-mentioned resilience of tech stocks, as well as leading gains posted by consumer discretionary stocks.

Today’s volatility in S&P 500 sectors. Source: Bloomber Finance LP

US2000 (D1)

Russell 2000 futures have pulled back after testing key resistance around 2,330 — a level that has repeatedly capped the index’s attempts to revisit its November 2024 record highs. In addition to the downbeat PPI data, selling pressure was reinforced by the RSI brushing against overbought territory yesterday. Despite today’s decline, the broader trend on US2000 remains bullish: the index is still trading above the recent breakout level near 2,285 and well clear of both the EMA30 and EMA100.

Source: xStation5

Company news:

• Bullish (BLSH.US), a Cayman Islands-based crypto exchange and CoinDesk owner, surged 84% to $68 in its $1.1 billion NYSE IPO, valuing it at $9.9 billion. The oversubscribed deal, led by JPMorgan, Jefferies, and Citi, highlights growing public-market interest in crypto infrastructure. CEO Tom Farley stressed institutional credibility, while the firm posted a $348.6 million Q1 loss.

• Cisco (CSCO.US) posted Q4 revenue of $14.7 billion, up 7.6%, and $0.99 EPS (ex-items), topping estimates. FY26 guidance of $59–$60 billion matched forecasts but trailed bullish expectations. AI sales hit $1 billion in FY25, with $800 million in Q4 AI infrastructure orders. CEO Chuck Robbins flagged Middle East partnerships and Splunk integration as growth drivers amid rising competition. The stock is currently flat.

• DLocal (DLO.US) surged 22% after Q2 net income hit $42.8 million, beating estimates on strong payment growth in Argentina (+84%) and Brazil (+86% Q/Q). Revenue rose to $256.5 million, with margins topping forecasts. Analysts praised cost control, product innovation, and LatAm momentum, with several raising ratings and price targets. Guillermo López Pérez was named CFO.

• JD.com’s (JD.US) Q2 revenue jumped 22% to 356.7 billion yuan ($49.7 billion), beating estimates on Beijing subsidies and new ventures like meal delivery. Net income fell 50% to 6.2 billion yuan as margins shrank to 1.7% amid steep promotions and price wars with Meituan and Alibaba. Marketing costs more than doubled, with profit pressure expected to persist through year-end. Nevertheless, the US-listed stock is down 3.3%.

• Schrödinger (SDGR.US) plunged 7.5% after halting development of its blood cancer drug SGR-2921, following two patient deaths in a Phase 1 AML trial where the drug was deemed a contributing factor. The company cited safety concerns and difficulties pursuing combination therapy, despite some early clinical activity. CMO Margaret Dugan emphasized patient safety as the priority.

• Tapestry (TPR.US) shares plunged 16% after its FY26 EPS forecast of $5.30–$5.45 missed estimates, hurt by over $160 million in tariff and duty costs. Q4 sales rose 8.3% to $1.72 billion, topping forecasts, with margin gains offset by tariff headwinds. The board approved a 14% dividend hike, despite $855 million in Kate Spade impairment charges.