Market indices and crypto extend dip as traders ignore US inflation and trade relief

Stocks dropped again Thursday morning as traders ignored fresh inflation data and signs of trade relief between Washington and Beijing, choosing instead to exit risk across the board.

S&P 500 futures slid 0.37%, Nasdaq 100 futures lost 0.29%, and Dow futures fell by 257 points, or 0.6%. The losses came after a weak Wednesday session, where the S&P 500 broke a three-day streak and closed down 0.3%, with the Nasdaq Composite also shedding 0.5%.

The Dow was basically flat. The index is now more than 2% below its all-time high from late February, stalling any momentum toward another record. Traders didn’t wait for Thursday’s Producer Price Index before selling.

The monthly inflation read for May was expected at 8:30 a.m. ET, with forecasts from Dow Jones calling for a 0.2% rise in headline prices and a 0.3% bump in core PPI, which excludes food and energy. But the market didn’t care. Positioning was already defensive, with investors reacting to other developments and treating the PPI release like background noise.

Dollar weakens as global tensions push traders to safe havens

The dollar was already slipping when markets opened, hitting its lowest level since April—a point that also marked its lowest value in three years. According to Dow Jones, it has now lost 10% against a basket of currencies in 2025 alone.

Middle East risks and doubts around the strength of the current U.S.–China trade truce pushed investors toward safer currencies. The Swiss franc and Japanese yen gained, each up 0.6% against the dollar.

European stocks joined the slide. The STOXX 600 index dropped 0.8%, with airlines and automakers taking the biggest hits as rising oil prices weighed on the sector.

Meanwhile, global equities eased after a relentless rally that started in early April. The MSCI All-Country World Index dipped 0.1%, just under its record high from the previous day.

Inside the U.S., recent tariff policy from President Donald Trump continued rattling investors. His erratic approach to trade has caused widespread dumping of U.S. assets, especially the dollar, as people brace for higher prices and slower growth. The euro gained from the dollar’s slump, reaching a seven-week high and sitting at $1.1535 during the session.

Gold holds near highs, crypto falls, treasuries rally

Gold held strong as traders avoided risk. Spot gold climbed 0.2% to $3,367.33 an ounce, reaching its highest point since June 5. Investors looked for direction from the PPI report and weighed the chances of a Fed rate cut later this year.

“Gold remains stuck… with a break above $3,400 needed to change that. Near term focus (is) on Middle East developments, the dollar and speculation about the timing of the next U.S. rate cut,” said Ole Hansen, Saxo Bank’s head of commodity strategy.

Crypto moved lower in step with tech and growth names. Bitcoin gave up earlier gains to $109K and is now struggling to stay above $107k, and altcoins followed as rate expectations kept changing.

Other metals were mixed. Silver dropped 0.8% to $35.94 an ounce, while platinum rose 0.3% to $1,260.14, hovering near a four-year high. Palladium was down 1.9%, trading at $1,059.25.

U.S. government bonds rallied as cash flowed into safer ground. 10-year Treasury yields fell 1.5 basis points, sinking below 4.4%, while 2-year yields, which react more quickly to inflation outlooks, slid 1.6 basis points to 3.93%. That rally confirmed what traders were showing with their feet: they weren’t convinced by low inflation, trade optimism, or any of the day’s usual signals. They were bracing for whatever comes next.

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