Market Beats | US Producer Prices Stay Muted in May; Manhattan Rents Hit Record High Again; Over 200 Dead in Air India Boeing 787 Crash; Chime Surges 66% in Trading Debut; Trump Says He May Raise Auto Tariffs to Spur US Manufacturing

—— US Producer Prices Stay Muted in May; Manhattan Rents Hit Record High Again; Over 200 Dead in Air India Boeing 787 Crash; Chime Surges 66% in Trading Debut; Trump Says He May Raise Auto Tariffs to Spur US Manufacturing

1. US Producer Prices Stay Muted in May

US producer price inflation remained subdued in May, rising just 0.1% month-over-month, according to the Bureau of Labor Statistics. The core PPI, which excludes food and energy, also posted a 0.1% gain, both readings coming in below economists’ expectations of a 0.2% increase.

The data aligns with consumer price reports showing muted inflation for the fourth consecutive month, suggesting that President Donald Trump’s new tariffs, announced in early April, have yet to meaningfully impact price levels for consumers or businesses. Analysts caution, however, that inflationary pressures could build later in the year if firms begin passing on higher costs.

Wholesaler and retailer profit margins rose in May, particularly in vehicle and machinery wholesaling, after declining in April. However, inflation in services remained modest, with only a 0.1% increase driven mostly by wholesale markups.

Notably, there were signs of pressure building in capital equipment and durable goods, but these were largely offset by subdued prices in food, energy, and other categories.

______

2. Manhattan Rents Hit Record High Again

Manhattan apartment rents reached a new all-time high in May, with the median rent on new leases rising to $4,571, according to data from Miller Samuel Inc. and Douglas Elliman. This marks the third new record in four months, surpassing the previous peak by $71.

The city’s rental market is expected to become even more competitive in the coming months as the summer leasing season ramps up, driven by expiring leases, new graduates, and incoming students. Historically, rents climb through the summer before plateauing in September.

Landlords are also expected to raise prices to offset costs associated with the newly enacted Fairness in Apartment Rental Expenses Act, which bans them from charging broker fees to new tenants. While the law reduces upfront costs for renters, it may contribute to higher rents overall.

In May, nearly 24% of new leases involved bidding wars, highlighting the intensity of competition. However, there is a modest relief: listing inventory rose 31% year-over-year, reaching its highest level since summer 2021.

______

3. Over 200 Dead in Air India Boeing 787 Crash

More than 200 bodies have been recovered following the crash of Air India flight AI171, a London-bound Boeing 787 Dreamliner that went down shortly after takeoff from Ahmedabad, turning 2025 into one of the deadliest years for commercial aviation in a decade.

The plane was carrying 242 passengers and crew, mostly Indian and British nationals. Officials have confirmed 204 fatalities so far, though the final toll may rise. At least 41 individuals are being treated for injuries, including local residents in the area where the aircraft crashed.

According to authorities, the plane entered a slow descent with its landing gear still deployed, before slamming into a medical school’s dining hall during lunchtime, causing a massive explosion. Video footage showed thick black smoke and wreckage with the tail of the plane embedded in a building.

India’s Home Minister Amit Shah confirmed that there was at least one survivor. The final death count will be determined after DNA verification.

______

4. Chime Surges 66% in Trading Debut

Chime Financial Inc. soared as much as 66% in its first day of trading on Thursday, after pricing its initial public offering above the marketed range and raising $864 million. The stock opened at $43, significantly higher than the $27 IPO price, and peaked at $44.94 in midday New York trading, giving the fintech company a market capitalization of $16.4 billion.

Including employee stock options and restricted stock units, Chime’s fully diluted valuation reached $19.1 billion — still lower than its $25 billion private valuation in 2021.

CEO Chris Britt said the company is focused on long-term performance and not short-term stock movements. “Even if it goes up today, I’m sure there are going to be other days that won’t be as great,” he told Bloomberg Television.

Chime’s strong debut follows a modest rebound in US IPO activity after President Donald Trump’s April 2 tariff announcement caused some delays in public offerings. So far this year, US IPOs raising at least $100 million have posted an average first-day gain of 25%, the highest since 2020.

Two other IPOs are expected next week before a likely summer slowdown: Caris Life Sciences Inc. is targeting $423.5 million and Slide Insurance Holdings Inc. up to $340 million.

______

5. Trump Says He May Raise Auto Tariffs to Spur US Manufacturing

President Donald Trump said Thursday he is considering raising US auto tariffs beyond the current 25% level in order to boost domestic vehicle manufacturing. Speaking at a White House event where he signed legislation repealing California’s planned 2035 ban on gasoline-powered cars, Trump argued that higher tariffs would pressure automakers to build more plants in the US.

“The higher you go, the more likely it is they build a plant here,” he said, pointing to General Motors’ recent announcement of a $4 billion investment in US facilities aimed at avoiding future tariffs.

Shares of major automakers fell following Trump’s remarks: GM dropped 1.5%, Ford 1.7%, and Stellantis 1.9%.

This move marks Trump’s latest escalation in trade policy, following a decision last week to double tariffs on steel and aluminum to 50%. His administration is currently engaged in negotiations with several trading partners ahead of a July 9 deadline for broader tariff hikes to take effect.

Trump’s termination of California’s clean car mandate is seen as a win for traditional automakers and oil producers but has drawn criticism from environmentalists and state officials who argue the decision will harm efforts to address climate change.

______

6. Alibaba Engineers Canceled Holidays to Catch Up After DeepSeek Breakthrough

Alibaba engineers worked through China’s most important holiday, canceling their Chinese New Year vacations to urgently respond to a competitive shock from domestic rival DeepSeek. Chairman Joe Tsai said at the VivaTech conference in Paris that the January debut of DeepSeek’s powerful and inexpensive R1 AI model revealed Alibaba had fallen behind.

Tsai recounted how engineering leads instructed teams to stay in the office and accelerate the development of Alibaba’s Qwen model series, which launched within weeks. He called Qwen “quite competitive” in response to DeepSeek’s disruption.

Since then, Alibaba has shifted its strategic focus to artificial intelligence, particularly artificial general intelligence, and pledged to invest over 380 billion yuan ($53 billion) in AI infrastructure over the next three years, including new data centers.

Despite the aggressive push, Alibaba’s financial returns remain unclear. The company’s March-quarter revenue rose only 7%, hindered by China’s ongoing economic slowdown. Its AI partnership with Apple Inc. has also attracted scrutiny from U.S. officials amid tech tensions.

______

7. Nvidia posts 69% revenue surge

Nvidia reported a 69% year-on-year jump in revenue to $44.1 billion for the quarter ending April 27, surpassing Wall Street’s forecast of $43.3 billion, even as it absorbs a major revenue hit from US export restrictions targeting China.

The chipmaker, central to the global AI infrastructure boom, expects revenue of about $45 billion for the current quarter, plus or minus 2%. That range puts its guidance slightly below the Bloomberg consensus estimate of $45.5 billion. Nvidia shares rose 5% in early Thursday trading.

The company is navigating the fallout from President Donald Trump’s renewed trade tensions with China, including export controls introduced in April that barred Nvidia from selling its AI chips specifically tailored for the Chinese market. Nvidia said those curbs led to a $4.5 billion charge last quarter and an additional $2.5 billion in missed sales. The company also expects to lose roughly $8 billion in Chinese revenue this quarter as a result.

CEO Jensen Huang said demand for Nvidia products remains “incredibly strong,” but he reiterated criticism of the US government’s export control measures on a call with analysts.

______