Key Takeaways
- IBM (IBM) shares crashed 23%, marking the company's steepest single-day decline since the 1987 market crash, weighing heavily on the Dow Jones Industrial Average.
- DeepSeek is expected to file for an Initial Public Offering (IPO) later this year, a move that could significantly reshape the competitive landscape of the artificial intelligence sector.
- Consensus forecasts point to a negative headline CPI print, which would be the first instance of deflationary monthly data since 2020, primarily driven by a 10% drop in gasoline prices.
- Uber (UBER) is in advanced negotiations to acquire Delivery Hero, reportedly planning a bid well above the target's recent valuation despite a 2.5% slide in Uber's own share price.
- White House official Kevin Hassett signaled a potential shift in trade and energy policy, discussing a 20% cargo ship fee and a target to bring gasoline prices down to $3.00 per gallon.
IBM Faces Historic Rout While Broader Markets Diverge
International Business Machines (IBM) experienced a catastrophic session today, with shares plunging 23% shortly after the opening bell. This massive sell-off represents the stock's worst performance since 1987, dragging the Dow Jones Industrial Average down 121.83 points (0.23%) to 52,376.81.
In contrast, the tech-heavy Nasdaq Composite climbed 127.42 points (0.49%) to reach 26,000.60, bolstered by optimism surrounding AI developments. The S&P 500 remained relatively flat, edging up 0.13% to 7,524.98 as investors balanced the IBM collapse against broader tech gains.
DeepSeek IPO and Uber’s M&A Ambitions
The AI sector received a major jolt with news that DeepSeek is expected to file for an IPO within the year. Analysts suggest this could be one of the most anticipated tech debuts of 2026, potentially challenging established AI giants for capital and talent.
Meanwhile, Uber (UBER) is making aggressive moves in the food delivery space, reportedly entering advanced talks to acquire Delivery Hero. Despite reports that Uber is prepared to pay a significant premium over Delivery Hero's recent trading price, Uber shares fell 2.5% as investors weighed the cost of the potential takeover.
Deflationary Signals: CPI and Energy Prices
Economists are bracing for a landmark inflation report, with consensus now expecting a negative headline CPI print. If realized, this would be the first negative reading since the pandemic-induced volatility of 2020. The shift is almost entirely attributed to energy, as AAA data confirms average gasoline prices in June fell 10% compared to May.
Kevin Hassett praised the current economic trajectory, calling the upcoming data the "best inflation report we've seen in about 6 years." Hassett noted that while Iranian-related issues caused a minor "hiccup" in pricing, the broader trend remains downward. He further stated that it is "realistic" to target gasoline at $3.00 a gallon in the near term.
New Trade Proposals and Shipping Fees
In a move that could impact global logistics, Hassett addressed the possibility of a 20% cargo ship fee. When questioned on the proposal, he characterized it as "one idea" currently under consideration by the administration. Market participants are closely watching for further details, as such a fee could have significant implications for international trade margins and supply chain costs.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.