The Mid-Day Buzz

Sophia Reyes · June 10, 2025 2:22 PM

June 10^th, 2025

Market Performance:

• U.S. stocks inched north again on Tuesday as investors embraced more trade war progress between the United States and China as well as updates from Apple’s Worldwide Developer’s Conference. Overseas, European markets are trading mixed following an improvement in the eurozone Sentix economic index. Markets in Asia were also mixed overnight

Economic Takeaways:

• The NFIB small business optimism index ticked higher in May after declining in four consecutive months.
• Bond yields are trading lower to begin the day, with the 10-year Treasury yield opening around the 4.45% mark and the 2-year yield beginning the day around 4%.
• U.S. and Chinese policymakers are having more discussions in London today.
• The S&P 500 has rallied by more than 20% since the April 8 low and is within striking distance of the February 19 all-time high.
• The 90-day pause of the April 2 tariff announcement is approaching.
• The Cboe Volatility Index (VIX) dipped under 17 recently for the first time since March.
• The Federal Open Market Committee (FOMC) prepares to decide on rates and release fresh economic and rate projections a week from tomorrow.
• Bitcoin climbed almost 1% in early trading. Coinbase Global (COIN) and other crypto-related stocks inched higher too.
• Odds of a June rate cut are zero and odds of a July cut are less than 15%, according to the CME FedWatch Tool. September rate cut odds remain near 63%.

Someone is in Line to Take Jerome Powell’s Position

Former President Donald Trump said Friday he plans to announce a successor to Federal Reserve Chair Jerome Powell “very soon,” ahead of Powell’s term ending in May 2026. Among the small group of candidates under consideration is Kevin Warsh, a former Fed governor whom Trump previously interviewed for the Treasury secretary role last November, according to sources familiar with the discussions.

Also in the running is Federal Reserve: Treasury Secretary Scott Bessent. Bessent is leading Trump’s initiative to revitalize the U.S. economy through major overhauls to trade, tax policy, and regulation. Formal interviews for the position have not yet begun, two of the sources noted.

“I have the best job in Washington,” Bessent said in response to a request for comment. “The president will decide who’s best for the economy and the American people.”

Meta Platforms Agrees to Take 49% Stake in AI Startup Scale AI for $14.8B

Meta Platforms (META) is set to acquire a 49% stake in artificial intelligence startup Scale AI for $14.8 billion, The Information reported Tuesday, citing two sources familiar with the matter.

Founded in 2016, Scale AI (SCAI.PVT) specializes in providing large volumes of labeled and curated training data—an essential component for developing advanced AI systems like OpenAI’s ChatGPT.

Although the deal has not yet been finalized, it stands to benefit Scale AI’s backers, including Accel, Index Ventures, Founders Fund, and Greenoaks Capital, as well as current and former employees, according to the report.

Representatives for Meta, Scale AI, and the startup’s investors did not immediately respond to Reuters’ requests for comment.

Notables

• Casey’s General Stores (CASY) surged 10.4% in pre-market trading after delivering quarterly earnings and revenue that handily exceeded analyst expectations. Comparable store sales (excluding fuel) rose 1.7%. Looking ahead, the company projects a stronger same-store sales increase of 2.5% for fiscal 2026 and announced a dividend hike.
• McDonald’s (MCD) dropped 1.4% following a downgrade from Buy to Sell by Redburn Atlantic, which cited concerns over the potential impact of weight-loss drugs on consumer behavior. The move follows a downgrade by Morgan Stanley the previous day to Equal-Weight, citing multiple headwinds including reduced personal incomes, growing health-consciousness, and international challenges.
• Tesla (TSLA) gained 2.5% in early trading amid reports of easing tensions between Elon Musk and Donald Trump. Investors are also beginning to focus on Tesla’s upcoming quarterly delivery report, expected in early July. Wall Street anticipates second-quarter deliveries of 412,000 vehicles, a 7% year-over-year decline, according to Barron’s.
• Taiwan Semiconductor Manufacturing (TSM) rose 1.8% pre-market after announcing a 40% increase in May revenue, driven by continued strong demand for AI-related chips.
• J.M. Smucker (SJM) sank 8.4% before the opening bell. While the company beat earnings and revenue estimates, its fiscal 2026 outlook disappointed investors. The projected earnings range came in below consensus, with the company citing a “dynamic and evolving external environment,” including the impact of tariffs.Top of Form
• Coca-Cola (KO) announced the targeted shutdown of its US manufacturing plant.
• Shares of Designer Brands (DBI) lost more than a fifth of their value Tuesday after the DSW parent reported first-quarter results that missed analysts’ estimates and withdrew its fiscal 2025 outlook.
• Elon Musk’s internet service Starlink has made an application to operate a satellite connection in southwestern Switzerland, the Swiss office of communications (BAKOM) said on Tuesday.

What’s Important Tomorrow

Inflation will be in focus for investors this week, with consumer price index (CPI) inflation for May out tomorrow. The CPI tomorrow and several Treasury auctions could help pave the path for yields.

Expectations are for headline CPI to rise by 0.2% for the month and 2.5% on an annual basis. Core CPI is expected to see a monthly gain of 0.3% and rise by 2.9% on an annual basis.

“Recent inflation prints have generally shown a moderation in price increases, but as time passes the effects of the tariffs should work their way into the data,” the Schwab Center for Financial Research said.