Major Indexes Retreat Following Three-Day Rally
The major U.S. stock indexes pulled back in midday trading on Thursday, June 12, 2025, as investors digested news of a deadly Air India plane crash involving a Boeing aircraft and fresh economic data. The stock market today is showing caution after a strong rally earlier in the week.
As of noon Eastern time, the Dow Jones Industrial Average was down 0.4% at 42,694.21, with Boeing (BA) shares plummeting nearly 7% following news that an Air India Boeing 787-8 Dreamliner crashed shortly after takeoff in Ahmedabad, India. The S&P 500 slipped 0.3% to 6,004.18, while the tech-heavy Nasdaq Composite declined 0.2% to 19,576.92.
“The midday market update shows investors taking a breather after the major indexes approached record territory earlier this week,” said Marcus Reynolds, chief market strategist at Capital Insights. “The S&P 500 remains just about 2% below its all-time high despite today’s pullback.”
Boeing Crash Impacts Market Sentiment
The crash of Air India Flight 171, which was carrying 242 passengers and crew members, marks the first fatal accident involving Boeing’s 787 Dreamliner model since it entered service nearly 14 years ago. The incident comes at a particularly sensitive time for Boeing (BA), which has faced intense scrutiny following a series of safety issues with its 737 MAX aircraft.
Shares of Boeing suppliers were also affected, with GE Aerospace (GE) down 3% and Spirit AeroSystems (SPR) falling 3% in midday trading.
Economic Data Shows Modest Inflation
The U.S. Bureau of Labor Statistics reported this morning that the Producer Price Index (PPI) for final demand increased 0.1% in May, following a 0.2% decline in April. On an unadjusted basis, the final demand index rose 2.6% for the 12 months ended in May.
“Today’s PPI print suggests inflation pressures continue to moderate, which supports the case for potential Federal Reserve interest rate cuts later this year,” noted Eliza Thompson, senior economist at Global Financial Research. “The markets today are processing this data alongside recent trade negotiations and employment figures.”
Initial jobless claims also came in slightly higher than expected, adding to evidence that the labor market may be cooling gradually.
Earnings in Focus as Adobe Reports After the Bell
Investors are awaiting quarterly results from Adobe (ADBE), which is scheduled to report its fiscal second-quarter earnings after market close today. The software giant’s shares were trading slightly lower ahead of the announcement, with analysts expecting solid performance driven by continued strength in its Creative Cloud and Document Cloud segments.
Other companies reporting earnings today include America’s Car-Mart (CRMT), The Lovesac Company (LOVE), and Hooker Furnishings (HOFT), which released results before the opening bell.
Sector Performance and Notable Movers
Among the 11 S&P 500 sectors, energy showed the most strength, rising 0.7% as oil prices climbed on supply concerns. Technology stocks were mixed, while materials and consumer discretionary sectors underperformed.
Notable movers in the stock market live session included Nucor (NUE), which fell 2.3% as the U.S. and Mexico continued negotiations on steel tariffs. Airline stocks also declined in sympathy with Boeing, with American Airlines (AAL) down 1.8% and Delta Air Lines (DAL) falling 1.5%.
Looking Ahead: Trade Talks and Fed Watch
Market participants continue to monitor U.S.-China trade negotiations, which concluded a round of talks in London yesterday. While no major breakthroughs were announced, investors remain hopeful that progress toward lower tariffs could support economic growth.
“The market news today reflects a cautious approach as we navigate through corporate earnings, economic data, and geopolitical developments,” said Jennifer Ortiz, portfolio manager at Meridian Investments. “Investors are particularly focused on next week’s Federal Reserve meeting for signals about the future path of interest rates.”
Trading volume was slightly above average at midday, with approximately 19.2 billion shares changing hands, compared to the 20-day average of 17.8 billion.