US OPEN: Trade Uncertainty Keeps Investors Cautious, Yields Drop on Soft PPI

• US equities open in the red as trade pessimism persists

• Treasuries sink following lower than expected inflation data

• Boeing’s shares sell off on deadly plane crash in India

Wall Street continues to post moderate declines amid ongoing trade tensions, as the deadline for post–Liberation Day negotiations approaches, falling short of the earlier promise of “90 deals in 90 days.” 

Investor sentiment remains cautious, with key agreements involving China and the European Union now expected to stretch well beyond July 1st. The uncertainty has been further amplified by President Trump's suggestion of potential new unilateral tariffs in the coming weeks. Among the major indices, the Russell 2000 leads the losses (-0.75%), followed by the Dow Jones Industrial Average (-0.4%), the Nasdaq (-0.2%), and the S&P 500 (-0.15%).

The lower-than-expected PPI has once again heightened market expectations for rate cuts in the U.S., as reflected by another decline in Treasury yields—10-year notes have slipped to 4.37% from 4.5% yesterday. However, the figures remain higher than the previous month's, indicating subdued yet persistent inflation dynamics, which continue to support the Fed’s current pause.

US100 (H1)

The US100 has recovered some of yesterday’s losses caused by a rise in CPI inflation. Today's lower-than-expected PPI inflation data has added bullish momentum, although the index still has a long way to go before coming back to the green. The index is currently trading within a channel between 21,973 and 21,470, which represent key resistance and support levels, respectively. A breakout beyond either of these levels could signal the emergence of a clearer trend for the US100. A more definitive outcome in U.S.–China negotiations will be crucial for the direction of the American index.

Source: xStation5

Company news

• BioNTech will acquire CureVac in a $1.25 billion all-stock deal to strengthen its cancer pipeline, offering a 34% premium to CureVac shareholders. The deal unites former Covid vaccine rivals, with CureVac pivoting to oncology after its shot failed. CureVac shares jumped 37% at the opening. The German government will exit its 13.3% stake, and the deal has backing from key CureVac investors.

• Boeing shares slumped 4.5% after an Air India 787 Dreamliner crashed shortly after takeoff from Ahmedabad en route to London, killing all 242 on board. The crash, involving the US planemaker’s most advanced widebody, is the worst since MH17 in 2014. The incident adds to Boeing’s mounting safety woes. Air India, amid a major fleet overhaul, faces scrutiny as the tragedy occurred in a residential area, prompting flight suspensions at Ahmedabad airport and emergency response coordination by Indian authorities.

• GameStop shares fell 19% after announcing a $1.75 billion zero-coupon convertible bond offering, one of 2025’s largest equity-linked deals. Proceeds may fund acquisitions and Bitcoin investments under a revised policy. This follows a $1.5 billion March bond sale aimed at crypto exposure, echoing Michael Saylor’s strategy. The new 2032 bonds include a 35–40% conversion premium. If completed, GameStop would top this year’s equity-linked issuance rankings. Pricing is expected post-market, with TD Securities managing the deal.

• Oracle shares surged over 11% after delivering strong Q1 2025 results, beating revenue and EPS estimates. Cloud services and license support revenue rose 14% YoY, with total cloud revenue hitting $6.7B. Boosted by major AI clients like OpenAI, Meta, and a massive new deal with Temu, Oracle is cementing its role in high-performance cloud infrastructure. With shares nearing all-time highs, upbeat forecasts and aggressive expansion signal strong momentum in its bid to rival AWS, Azure, and Google Cloud.