Oracle (ORCL) was the best-performing stock in the S&P 500 after the computer software manufacturer beat profit and sales estimates and said it sees demand for its cloud infrastructure products soaring.
Shares of CureVac (CVAC) took off after the biotech company was purchased by COVID-19 vaccine maker and fellow German firm BioNTech (BNTX) in an all-stock deal valued at about $1.25 billion. BioNTech American Depositary Receipts (ADRs) were little changed.
Shares of Newmont (NEM) and rival gold miners gained along with the price of the precious metal, which traded around at its highest level in more than a month on optimism about interest rate cuts.
Boeing (BA) shares slumped after one of the plane maker’s 787 passenger jets crashed in India, killing more than 200 people.
Shares of Tommy Bahama owner Oxford Industries (OXM) sank when the apparel maker cut its guidance and warned tumbling consumer sentiment and tariffs will hurt results.
GameStop (GME) shares plunged after the video-game retailer announced it would offer $1.75 billion in convertible bonds for sale.
Oil futures were little changed. The yield on the 10-year Treasury note declined. The U.S. dollar lost ground to the euro, pound, and yen. Most major cryptocurrencies traded lower.
Every Thursday, Freddie Mac, a government-sponsored buyer of mortgage loans, publishes a weekly average of 30-year mortgage rates. Last week’s reading edged 4 basis points lower to 6.85%. Last September, the average sank as far as 6.08%. But back in October 2023, Freddie Mac’s average saw a historic rise, surging to a 23-year peak of 7.79%.
Freddie Mac’s average differs from what we report for 30-year rates because Freddie Mac calculates a weekly average that blends five previous days of rates. In contrast, our Investopedia 30-year average is a daily reading, offering a more precise and timely indicator of rate movement. In addition, the criteria for included loans (e.g., amount of down payment, credit score, inclusion of discount points) varies between Freddie Mac’s methodology and our own.
Calculate monthly payments for different loan scenarios with our Mortgage Calculator.
Important
The rates we publish won’t compare directly with teaser rates you see advertised online since those rates are cherry-picked as the most attractive vs. the averages you see here. Teaser rates may involve paying points in advance or may be based on a hypothetical borrower with an ultra-high credit score or for a smaller-than-typical loan. The rate you ultimately secure will be based on factors like your credit score, income, and more, so it can vary from the averages you see here.
What Causes Mortgage Rates to Rise or Fall?
Mortgage rates are determined by a complex interaction of macroeconomic and industry factors, such as:
The level and direction of the bond market, especially 10-year Treasury yields
The Federal Reserve’s current monetary policy, especially as it relates to bond buying and funding government-backed mortgages
Competition between mortgage lenders and across loan types
Because any number of these can cause fluctuations simultaneously, it’s generally difficult to attribute the change to any one factor.
Macroeconomic factors kept the mortgage market relatively low for much of 2021. In particular, the Federal Reserve had been buying billions of dollars of bonds in response to the pandemic’s economic pressures. This bond-buying policy is a major influencer of mortgage rates.
But starting in November 2021, the Fed began tapering its bond purchases downward, making sizable reductions each month until reaching net zero in March 2022.
Between that time and July 2023, the Fed aggressively raised the federal funds rate to fight decades-high inflation. While the fed funds rate can influence mortgage rates, it doesn’t directly do so. In fact, the fed funds rate and mortgage rates can move in opposite directions.
But given the historic speed and magnitude of the Fed’s 2022 and 2023 rate increases—raising the benchmark rate 5.25 percentage points over 16 months—even the indirect influence of the fed funds rate has resulted in a dramatic upward impact on mortgage rates over the last two years.
The Fed maintained the federal funds rate at its peak level for almost 14 months, beginning in July 2023. But in September, the central bank announced a first rate cut of 0.50 percentage points, and then followed that with quarter-point reductions in November and December.
For its third meeting of 2025, however, the Fed opted to hold rates steady—and it’s possible the central bank may not make another rate cut for months. At their March 19 meeting, the Fed released its quarterly rate forecast, which showed that, at that time, the central bankers’ median expectation for the rest of the year was just two quarter-point rate cuts. With five more rate-setting meetings scheduled this year, that means we could see more rate-hold announcements in 2025.
The Producer Price Index showed that wholesale prices rose by 0.1% in May, less than economists expected, while annual wholesale price increases were in line with estimates.
A consumer inflation report yesterday also showed prices weren’t rising as fast as expected in response to President Donald Trump’s tariff policies.
Economists did see some signals of increased inflation in the report, especially in rising prices for appliances, computer equipment, machinery, and vehicle wholesaling.
Economists are expecting a jump in inflation from President Donald Trump’s tariff policies, but once again it failed to show up in the latest pricing data.
Prices at the wholesale level came in lower than expected in May. That comes after yesterday’s consumer pricing data also failed to reveal an expected jump in inflation.
The Bureau of Labor Statistics’ Producer Price Index (PPI) showed prices rose 0.1% in May from April. Economists surveyed by The Wall Street Journal and Dow Jones Newswires expected a larger increase of 0.2%. The April reading showed wholesale prices were down 0.2% from the prior month.
On an annual basis, wholesale prices in May grew by 2.6%, in line with projections by Wells Fargo economists and an increase from last month’s reading of 2.4%. Core wholesale inflation, which takes out volatile food and fuel prices, also increased less than expected in May.
“Concerns about widespread increases in producer prices due to tariffs continue to be dissuaded. Cheaper costs for diesel and jet fuel helped to mute the headline gains with total intermediate goods only up modestly in May,” Nationwide Senior Economist Ben Ayers wrote.
Signals of Higher Tariffs Costs Show Up in Some Products
While price pressures continue to remain tame, economists said the report did show signs that inflation is working its way through the system following the implementation of U.S. tariffs.
The report noted that prices for machinery and vehicle wholesaling jumped 2.9%, while appliances and computer equipment costs also rose in May.
“The softer headline gain for the PPI in May hides much of the underlying cost pressures faced by producers. Tariff impacts are steadily flowing into prices for inputs, especially for metals, which is raising production costs for machinery and vehicles,” Ayers added.
BioNTech is buying fellow German firm CureVac for approximately $1.25 billion as the COVID-19 vaccine maker moves to expand into cancer treatments.
For each CureVac share they own, investors will get about $5.46 worth of BioNTech American Depositary Shares.
CureVac is developing cancer medicines using the same mRNA technology that BioNTech uses for its COVID-19 shot.
CureVac (CVAC) shares skyrocketed 37% Thursday when the biotech company agreed to be bought by COVID-19 vaccine maker and fellow German firm BioNTech (BNTX) in an all-stock deal valued at about $1.25 billion. The purchase boosts BioNTech’s move into producing new cancer treatments.
CureVac said its investors will receive approximately $5.46 worth of BioNTech American Depositary Shares for each CureVac share they own. That a 34% premium to yesterday’s closing price.
The company noted it is “developing a novel class of transformative medicines in oncology and infectious diseases based on messenger ribonucleic acid (“mRNA”).” BioNTech’s COVID-19 shot is also mRNA-based.
BioNTech co-founder and CEO Dr. Ugur Sahin said the deal is aimed at “advancing the development of innovative and transformative cancer treatments and establishing new standards of care for various types of cancer in the coming years.”
The transaction is expected to close this year and would see CureVac’s operating subsidiary become a wholly owned subsidiary of BioNTech.
Shares of CureVac soared to their highest level since December 2023. U.S.-listed shares of BioNTech were little changed and remain down nearly 8% year-to-date.
Boeing shares are slumping in early trading after a 787-8 aircraft was involved in an Air India plane crash early Thursday.
Air India Flight 171, carrying 242 passengers, was departing the western Indian city of Ahmedabad for London Gatwick airport and crashed “after take off,” Air India said.
Shares in engine maker GE Aerospace and Spirit AeroSystems are also dropping.
Boeing (BA) shares are slumping in early trading after a 787-8 aircraft was involved in an Air India plane crash early Thursday.
The Air India Flight 171, which was carrying 242 passengers, was departing the western Indian city of Ahmedabad for London Gatwick airport and crashed “after take off,” Air India said in a post on the X social media platform. It departed the Indian city at 1:38 p.m. local time, the airline said.
“We are in contact with Air India regarding Flight 171 and stand ready to support them. Our thoughts are with the passengers, crew, first responders and all affected,” a Boeing spokesperson said in a statement to Investopedia.
GE Aerospace, which provides engines for many Boeing aircraft, including the 787, said it is ready to support the crash probe.
“We have activated our emergency response team, and we are prepared to support our customer and the investigation,” the company said in a post on X.
Ahmedabad’s Police Commissioner G.S. Malik told The Associated Press that there were few signs of surviving passengers, noting that “it appears there are no survivors in the plane crash.”
The 787 model, popularly known as the Dreamliner, hadn’t had a fatal accident in its nearly 14 years in service, according to The Wall Street Journal.
Boeing’s reputation took a hit last year following a series of mishaps at its planes, including a door plug detaching in midair on an Alaska Airlines 737 Max 9 flight in January. Earlier this month, the plane maker agreed to settle a Justice Department case related to two fatal 737 Max crashes that claimed the lives of more than 300 people.
Boeing was the biggest decliner in the S&P 500 at the open Thursday, with shares falling more than 4%. Shares in other makers of Dreamliner parts also tumbled: Engine maker GE Aerospace (GE) shares are down 3%, and those of Spirit AeroSystems Holdings (SPR), which Boeing is in the process of reacquiring, are down 3%.
UPDATE—June 12, 2025: This article has been updated to include a comment from the Ahmedabad police commissioner and the latest share price information.
GameStop shares are dropping 17% in premarket trading Thursday, extending a post-earnings slide.
After the bell Wednesday, the video-game retailer announced a $1.75 billion convertible note offering. Shares fell more than 5% yesterday after GameStop reported a 17% year-over-year decline in first-quarter sales.
The retailer said last month that it had bought over 4,700 bitcoin.
The company late yesterday said it was planning to offer $1.75 billion in convertible notes, with another $250 million open to those who buy in first. The announcement came a day after GameStop reported a 17% year-over-year decline in first-quarter sales, which caused shares to fall more than 5% in Wednesday trading.
The new convertible note offering aligns with the retailer’s previously stated plans to raise new money to allow it to buy bitcoin, after adding the cryptocurrency to its corporate investment policy in March.
Last month, GameStop disclosed that it had purchased 4,710 bitcoin, worth slightly more than $500 million at the cryptocurrency’s current price of roughly $107,000. GameStop said it plans to use the new funds for “general corporate purposes, including making investments in a manner consistent with GameStop’s Investment Policy and potential acquisitions.”
GameStop shares entered Thursday down about 9% since the start of the year.
Oracle are jumping in premarket trading Thursday, a day after the tech giant’s fiscal fourth-quarter results topped analysts’ estimates.
CEO Safra Catz predicted “dramatically higher” revenue growth rates in its new fiscal year.
Analysts’ average price target for Oracle stock is up $20 from Wednesday to nearly $194, per Visible Alpha.
Oracle (ORCL) are jumping in premarket trading Thursday, a day after the tech giant’s fiscal fourth-quarter results topped analysts’ estimates.
CEO Safra Catz said the company’s fiscal 2025 was a “very good year,” but said she believes fiscal 2026 “will be even better as our revenue growth rates will be dramatically higher.”
The report made several analysts more bullish on Oracle, as the average price target compiled by Visible Alpha is about $194, up roughly $20 from what it was on Wednesday morning, hours before the earnings report was released.
Oracle shares, which are up 8% at more than $190 an hour before the bell, are on pace to open at their highest level since $191.51 on Jan. 22.
Design software developer Adobe (ADBE) is slated to report fiscal second-quarter earnings after the bell Thursday, and investors are expecting a relatively modest share movement to follow.
Options pricing suggests traders anticipate Adobe stock to move about 6.6% in either direction the day after its earnings report. A move of that scale would lift shares to roughly $440, their highest level in three months, or drop them to about $386, a one-month low.
Adobe shares slipped 0.8% to $412.84 on Wednesday. The stock is down about 7% since the start of the year.
Adobe stock has registered an average post-earnings move of 12.6% over the past four quarters, and fell in three of those instances. A 6.6% gain or loss on Friday would represent the stock’s smallest post-earnings move since December 2023.
In March, shares dropped nearly 14% the day after Adobe reported record quarterly revenue but issued an outlook that underwhelmed investors. In December, it was a similar story: a worse-than-expected forecast sent shares tumbling more than 13%.
Most analysts are bullish on Adobe’s long-term outlook. Of the 17 Adobe analysts tracked by Visible Alpha, 10 rate the stock a “buy,” six are neutral, and one rates it a “sell.” The average price target of about $477 is more than 15% above the stock’s closing price on Wednesday.
Morgan Stanley analysts earlier this week said investor concerns about Adobe’s long-term competitiveness and generative AI opportunity should help Adobe “step over a low bar” when results come out Wednesday. The bank assigns the stock an “overweight” rating and an above-consensus price target of $510.
Fintech firm Chime priced its IPO at $27 per share, above the expected range, in the latest sign of a revival in new listings.
The online banking startup raised around $700 million in the IPO from the sale of 25.9 million shares, while existing investors sold about 6.1 million shares for nearly $165 million.
Shares of companies that listed recently, like USDC stablecoin issuer Circle Internet Group, Israel-based retail trading platform eToro, and space and defense tech firm Voyager Technologies, all surged in their trading debuts.
Fintech firm Chime late Wednesday priced its initial public offering (IPO) at $27 per share, above the expected range, in the latest sign of a revival in new listings.
Chime is set to start trading Thursday under the ticker symbol “CHYM.” The online banking startup raised around $700 million from the sale of 25.9 million shares, while existing investors sold about 6.1 million shares for nearly $165 million.
Last week, Chime said the IPO price was expected to be between $24 and $26 per share.
IPO Market Has Been Picking Up Recently
Shares of companies that debuted recently, like USDC stable coin issuer Circle Internet Group (CRCL), Israel-based retail trading platform eToro (ETOR), and space and defense tech firm Voyager Technologies (VOYG), all soared in their first day of trading.
In its prospectus last month, Chime reported 2024 revenue of $1.67 billion and a $62.2 million loss from operations. The company noted that it averaged $251 in revenue for each of its 8.6 million active members.
Credit-card holders generally prefer cash back to points, but premium cardholders value the points more, according to a survey from Bank of America.
Premium cardholders—those who pay an annual fee of $250 or more—skew higher-income and male, the survey found.
Consumers generally don’t appreciate cards that come with access to exclusive events, airport lounges and discounts at specific retailers, the analysis found.
Most credit-card holders like their spending rewards in cash.
Among the roughly 2,000 Americans recently surveyed by Bank of America, 70% said the best perk a credit card can offer is cash back. This preference was most pronounced among consumers who don’t pay an annual fee for their credit card, at 84%. About 75% of cardholders with an annual fee of under $250 ranked cash back as the top reward.
Card points and airline miles were also fairly popular rewards mechanisms, the survey found. But getting first dibs on concert tickets, access to exclusive events and other “lifestyle rewards” along with “airport lounge access, and discounts at specific retailers were not highly rated by respondents despite their prevalence in recent marketing,” Bank of America said.
Consumers with premium cards—defined as those with an annual fee of at least $250—had different preferences. Just 33% of this group valued cash back most, while 52% had more appreciation for card points, the survey said.
The results challenge the idea that premium cardholders tend to be older, given that 19% of those surveyed were under 30, the analysts said. This group skewed higher-income and male, with 65% of the premium cardholders identifying as male, and 35% as female, the survey said.
Roughly 45% of credit cardholders reported having an annual fee of any size, which exceeded analysts’ expectations. The Consumer Financial Protection Bureau estimated in recent years that 15% to 27% of credit cards had an annual fee.
