Wall Street opened lower Thursday as Boeing shares fell over 5% after a fatal Air India crash. Oracle stock jumped nearly 10% following a strong earnings report, partially offsetting market declines. Falling Treasury yields suggest easing inflation, sparking optimism for potential Fed rate cuts.
Boeing Drop Weighs on Markets – Quick Looks
- S&P 500 down 0.3%, Dow Jones down 246 points (0.6%), Nasdaq slips 0.3%.
- Boeing shares plunge 5.5% after Air India 787 Dreamliner crashes post-takeoff in Ahmedabad.
- Oracle stock surges 9.6% after beating Q2 earnings and revenue expectations.
- Producer Price Index (PPI) data shows mild inflation, fueling Fed rate cut hopes.
- 10-year Treasury yield dips to 4.36%, down from 4.41%.
- Jobless claims data shows highest level in 8 months, further easing bond yields.
- Investors cautious as Fed watches Trump tariffs’ economic impact.
- Hong Kong’s Hang Seng Index falls 1.4%, despite strong YTD performance (+20%).
Boeing Tumbles, Oracle Rallies as Wall Street Drifts Lower – Deep Look
NEW YORK (AP) — U.S. stock markets edged lower Thursday morning, with major indexes losing early momentum as mixed economic data, geopolitical concerns, and corporate news unsettled investors.
The S&P 500 slipped 0.3%, the Dow Jones Industrial Average dropped 246 points (0.6%), and the Nasdaq composite dipped 0.3% shortly after markets opened.
Boeing Weighs Down Dow After Fatal Crash
The market’s downward pressure was largely attributed to a sharp drop in Boeing shares, which fell 5.5% following a deadly Air India plane crash in Ahmedabad, India. The Boeing 787 Dreamliner, headed for London, crashed just minutes after takeoff, killing all 242 people onboard.
While investigations into the cause are still underway, the crash represents the first ever involving a Boeing 787, raising concerns over potential liabilities and safety-related repercussions for the aerospace giant.
Boeing’s performance single-handedly accounted for a major portion of the Dow’s decline, reminding investors of how headline risk can quickly rattle blue-chip stocks.
Oracle Boosts Tech Sector with Strong Earnings
Offering a bright spot amid the downturn, Oracle stock surged 9.6% after the company reported better-than-expected quarterly earnings and revenue. The software and cloud services firm impressed Wall Street with robust demand across its cloud infrastructure segments.
Analysts hailed the results as evidence that Oracle’s pivot to cloud and AI-integrated services is bearing fruit, giving tech bulls a reason to remain optimistic in an otherwise cautious market.
Inflation Cools, Yields Ease
Investors were also digesting a fresh round of inflation data showing that wholesale prices rose less than expected in May, following a similar report on consumer prices earlier this week.
These reports led to a pullback in Treasury yields, with the 10-year note falling to 4.36%, down from 4.41% Wednesday and 4.80% earlier in the year.
Easing inflation could give the Federal Reserve more flexibility to lower interest rates later in 2025, a move that could support economic growth without reigniting inflationary pressures. However, the Fed remains cautious due to the ongoing uncertainty around President Trump’s aggressive tariff policies, which could simultaneously stoke inflation and slow growth.
Jobless Claims Add to Caution
Adding to the cautious sentiment, jobless claims remained elevated at 248,000, matching last week’s eight-month high. The four-week average rose to 240,250, suggesting that the labor market is cooling more significantly than previously thought.
While not yet a cause for alarm, these figures reinforce the narrative that economic momentum is slowing, giving the Fed more incentive to tread carefully as it weighs future rate adjustments.
Global Markets Mixed
Global stock markets showed mixed results. European and Asian indexes were mostly steady, but Hong Kong’s Hang Seng Index dropped 1.4%, giving up some of its impressive 2025 gains. The Hang Seng remains up nearly 20% year-to-date, highlighting regional investor confidence despite short-term volatility.
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