Stocks fell again on Thursday morning as traders ignored fresh inflation data and signs of trade assistance between Washington and Beijing, choosing instead to exit risk across the board.
S&P 500 futures fell 0.37%, Nasdaq 100 futures lost 0.29%, and Dow futures dropped 257 points, or 0.6%. The losses came after a weak session on Wednesday when the S&P 500 ended its three-day winning streak, closing down 0.3%, while the Nasdaq Composite also lost 0.5%.
The Dow mostly remained flat. The index is now more than 2% below its all-time high from late February, which has stalled any momentum toward a new record. Traders did not wait for the producer price index on Thursday to sell.
The monthly inflation figure for May was expected at 8:30 AM Eastern Time, with Dow Jones forecasts predicting a 0.2% rise in core prices and a 0.3% increase in the core producer price index, which excludes food and energy. But the market was unconcerned. Positioning was already defensive, and investors were reacting to other events, perceiving the PPI release as background noise.
The dollar is weakening as global tensions push traders to safe havens
The dollar had already fallen when markets opened, reaching its lowest level since April — a mark that also marked its lowest value in three years. According to Dow Jones, it lost 10% against a basket of currencies just in 2025.
Risks in the Middle East and doubts about the strength of the current trade truce between the US and China pushed investors toward safer currencies. The Swiss franc and the Japanese yen rose by 0.6% each against the dollar.
European stocks joined the decline. The STOXX 600 index fell by 0.8%, with airlines and automakers hit hardest as rising oil prices put pressure on the sector.
Meanwhile, global stocks fell after an unrelenting rally that began in early April. The MSCI All-Country World Index fell by 0.1%, just below its record high from the previous day.
Within the US, President Donald Trump's recent tariff policy continued to spook investors. His unstable approach to trade led to a widespread sell-off of US assets, particularly the dollar, as people prepared for higher prices and slower growth. The euro rose due to the dollar's fall, reaching a seven-week high and settling at $1.1535 during the session.
Gold is holding near highs, cryptocurrencies are falling, Treasury bonds are rising
Gold is holding strong as traders avoid risk. Spot gold rose 0.2% to $3367.33 per ounce, reaching its highest point since June 5. Investors were awaiting guidance from the PPI report and weighing the chances of a Fed rate cut later this year.
"Gold remains in a stalemate... a break above $3400 is needed to change the situation. In the short term, attention is focused on events in the Middle East, the dollar, and speculation about the timing of the next rate cut in the US," said Ole Hansen, head of commodity strategy at Saxo Bank.
Cryptocurrency fell in line with technology and economic assets. Bitcoin has lost previous gains down to $109,000 and is now struggling to hold above $107,000, while altcoins followed suit as rate expectations continued to shift.
$BTC , $AVAX , $XRP
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