Today’s Complete Market CoverageMajor Indexes Poised for Mixed Open After Wednesday’s Decline
U.S. stock futures are showing mixed signals early Thursday, June 12, 2025, as investors digest yesterday’s market pullback and await key economic data. The S&P 500 closed Wednesday at 6,022.24, down 0.3%, ending a three-day winning streak. The Dow Jones Industrial Average finished nearly flat at 42,865.77, while the Nasdaq Composite declined 0.5% to 19,615.88, weighed down by technology stocks.
Premarket trading suggests a cautious start as market participants await today’s Producer Price Index (PPI) data, which could provide insights into inflation trends and influence Federal Reserve policy decisions. Analysts expect the May PPI to show a reading of -0.5% month-over-month, with core PPI (excluding food and energy) at -0.1%.
U.S.-China Trade Deal Takes Center Stage
Markets continue to react to developments in U.S.-China trade relations following a breakthrough in negotiations. The United States and China reached a framework agreement after high-level meetings in London, potentially easing tensions that have weighed on global markets. U.S. Commerce Secretary Howard Lutnick confirmed the deal, which follows a 90-day pause in tariff implementations agreed upon in May.
President Donald Trump stated the deal is “done, subject to final approval” with Chinese President Xi, highlighting that the U.S. would receive 55% tariffs while China would get 10%. Investors are watching closely for the final signing, which could significantly impact global trade dynamics and supply chains.
Tech Sector Under Pressure as Intel Leads Declines
Technology stocks remain in focus after Wednesday’s sector-wide pullback. Intel Corporation (INTC) was the major loser among tech giants, tumbling 6.3% amid ongoing concerns about its competitive position in the semiconductor market.
Meanwhile, Nvidia Corporation (NVDA) is showing weakness in premarket trading following reports about potential impacts from export restrictions. Investors are concerned about the chipmaker’s exposure to trade tensions, with analysts estimating that export curbs could affect approximately $8 billion in second-quarter sales.
Key Earnings and Economic Events to Watch
Today’s market action will be influenced by several important releases:
– Adobe (ADBE) is scheduled to report earnings after market close, with investors looking for insights into the software giant’s AI initiatives and subscription growth.
– The Producer Price Index release at 8:30 AM ET will be closely watched for signs of easing inflation pressures.
– Weekly jobless claims data will also be released this morning, providing a snapshot of labor market conditions.
– San Francisco Fed President Mary Daly is scheduled to speak later today, potentially offering clues about the Federal Reserve’s monetary policy outlook.
Sector Performance and Market Breadth
Wednesday’s trading showed divergent sector performance, with Energy emerging as a bright spot. The Energy Select Sector SPDR (XLE) rose 1.5%, benefiting from stabilizing oil prices. Conversely, Materials and Consumer Discretionary sectors showed weakness, declining 1% and 0.8% respectively.
Market breadth indicators remain mixed. The S&P 500 recorded 11 new 52-week highs against only 2 new lows on Wednesday, while the Nasdaq registered 80 new highs and 43 new lows. The CBOE Volatility Index (VIX), often called the “fear gauge,” increased 1.8% to 17.26, suggesting rising investor uncertainty.
Looking Ahead: Market Sentiment and Positioning
Despite recent volatility, the S&P 500 remains less than 2% away from its all-time high, indicating underlying market resilience. Trading volume has been robust, with 18.9 billion shares changing hands on Wednesday, above the 20-session average of 17.8 billion.
As markets navigate today’s stock market news, investors will be balancing positive developments in U.S.-China trade relations against concerns about inflation, corporate earnings, and potential shifts in Federal Reserve policy. With Adobe’s earnings and key economic data on tap, Thursday’s session could provide important signals about market direction heading into the final trading day of the week.