Dow Jones and S&P500: Futures Slide Today on Tariff Threats and Boeing Fallout

Futures Slide as Trump Threatens Tariffs, Boeing Drops on Crash Fallout

U.S. stock futures declined Thursday as President Donald Trump renewed trade threats, rattling markets already wary of geopolitical and economic uncertainty. As of 13:00 GMT, Dow futures were down 151 points, or 0.35%, at 42,757.00. S&P 500 futures lost 16.25 points, or 0.27%, to trade at 6,012.75, while Nasdaq 100 futures fell 54 points, or 0.25%, to 21,833.50.

Will Trump’s Tariff Threats Undermine Progress with China and Others?

Traders had been monitoring U.S.-China developments for signs of relief, but Trump’s renewed rhetoric unsettled sentiment. Speaking Wednesday, he confirmed plans to send letters to countries like Japan, South Korea, and the EU within two weeks, outlining potential unilateral tariffs. While U.S. and Chinese officials agreed to ease some restrictions—particularly around rare earth exports and foreign student policies—the broader framework for future talks remains unratified by either side’s leadership.

With the July 8 trade deadline looming, markets remain on edge over whether diplomacy can deliver a durable solution or if tariffs will escalate without further notice.

Are Weak Inflation and Rising Continuing Claims Giving the Fed Room to Pause?

Economic data added mixed signals. May’s Producer Price Index rose just 0.1%, under the 0.2% forecast, extending April’s downward trend. Core PPI—stripping out food, energy, and trade services—also climbed 0.1%, reinforcing the view that inflationary pressure is muted despite recent oil and commodity volatility. Services prices ticked higher on machinery and vehicle wholesaling margins, while goods were led by a spike in tobacco pricing.

On the jobs front, weekly jobless claims were flat at 248,000, in line with expectations. However, continuing claims jumped by 54,000 to 1.96 million—the highest since November 2021—suggesting some softening in the labor market. Together, the data may give the Federal Reserve justification to remain on hold next week, rather than rushing into a rate cut.

How Are Boeing and Oracle Moving Premarket on Headlines?

Boeing dragged Dow futures lower, sliding over 7% in premarket trade after a 787 Dreamliner operated by Air India crashed shortly after takeoff. All 242 passengers and crew were aboard. While the cause remains unknown and aviation experts advise caution, the incident renewed concerns for investors already sensitive to Boeing’s recent safety record. Suppliers GE Aerospace and Spirit AeroSystems dropped 4% and 3%, respectively.

In contrast, Oracle jumped nearly 9% after its fiscal Q4 report beat expectations and projected continued cloud momentum. Barclays raised its target from $202 to $221, saying the company’s guidance and backlog metrics showed a business shift too strong to ignore. The move pushed Oracle’s market cap above $500 billion.

What’s the Market Outlook as Traders Brace for the Fed and Middle East Risk?

After breaking a three-day winning streak, the S&P 500 is now just over 2% below its February high. But with geopolitical tensions heating up—particularly with oil markets reacting to possible Israeli military action against Iran—investors are opting for caution. WTI crude dropped 2% to $66.77 per barrel, while Brent slid to $68.42.

For now, attention turns to next week’s Federal Reserve meeting. With inflation contained but job data showing cracks, traders will be parsing Chair Powell’s language closely for any signal on the path for rates. Until then, risk appetite may remain subdued, especially as global trade developments remain fluid.

More Information in our Economic Calendar.