US stocks open lower as Trump’s tariff threat sours sentiment; Boeing down 4.5%, Oracle jumps 11%

US stocks open lower as Trump’s tariff threat sours sentiment; Boeing down 4.5%, Oracle jumps 11%

US stocks opened in the red on Thursday as renewed tariff threats from former President Donald Trump and a deadly crash involving a Boeing aircraft rattled investor sentiment, even as fresh inflation data came in softer than expected.

The Dow Jones Industrial Average fell 225 points, or 0.5%, in early trade. The S&P 500 declined 0.3%, while the Nasdaq Composite edged 0.2% lower.

Boeing shares dropped 4.53% after an Air India 787 Dreamliner bound for London crashed shortly after takeoff from western India, with 242 passengers and crew on board. The incident put pressure on aviation-linked stocks, with GE Aerospace and Spirit AeroSystems also slipping in early trade.

“This is not a brand new airplane. Air India has a very good safety record,” said aviation expert Mike Boyd on CNBC, warning against premature speculation or comparisons to past Boeing crises.

In contrast, Oracle surged 11% after the enterprise software major reported a strong fiscal fourth-quarter, beating Wall Street estimates on both revenue and profit. Management flagged continued momentum in its cloud business, which investors welcomed.

Markets were already on edge after Trump said on Wednesday that the US may begin unilaterally imposing tariffs on trading partners within two weeks. He indicated that a July 8 deadline for concluding trade negotiations could be extended, but added, “I don’t think we’re going to have that necessity.”

“We made a great deal with China. We’re dealing with Japan, South Korea… a lot of them,” Trump said, adding that letters would soon be sent to foreign governments outlining the US’s new trade stance.

While US and Chinese officials reached a framework for continued talks during meetings in London this week, the outcome remains non-binding and awaits formal sign-off from both Trump and Chinese President Xi Jinping. The two countries did agree to ease restrictions around rare earth metals and student visas.

On the macro front, the May Producer Price Index (PPI) rose just 0.1%—below the 0.2% increase economists had expected and signaling continued disinflationary momentum. Core PPI, which excludes food and energy, also came in cooler than forecast.

Despite the favorable print, investors remained cautious. “Is there really a good reason to take a run at the record high?” said Scott Wren, senior global market strategist at Wells Fargo. “With the economy slowing, earnings growth likely to slow, and lots of trade negotiations still unresolved, it makes a lot of sense that we’d be choppy and maybe see a little downside here.”

The S&P 500 and Nasdaq ended lower on Wednesday, snapping a three-day winning streak. While the S&P remains just over 2% below its February peak, market participants appear unwilling to chase highs in the face of geopolitical uncertainty and uneven earnings visibility.