The Rundown - Chime to Make Market Debut in $11B IPO, Boeing Shares Fall After Fatal Crash

Episode Date: June 12, 2025

Stock market update for June 12, 2025.Follow ⁠⁠⁠@TheRundownDaily⁠⁠⁠ on Instagram.This video is for informational purposes only and reflects the views of the host and guest, not Public Holdings or its subsidiaries. Mentions of assets are not recommendations. Investing involves risk, including loss. Past performance does not guarantee future results. For full disclosures, visit ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Public.com/disclosures⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠.

Public.com presents the rundown. Your daily market update in under 10 minutes. My name is Zad Admani, and today is Thursday, June 12th. In today's episode, we'll tell you why the markets weren't loving the new framework trade deal between the U.S. and China, and why President Trump will keep pushing for lower interest rates. We'll also tell you about Tesla's lawsuit against a former employee for stealing trade secrets. Then stick around to the end of the show to find out about a shocking stat regarding stable coins that blew my mind. We got a great show for you today.

Let's go. The stock market snapped a three-day win streak on Wednesday with the S&P 500 dropping 0.3% and the NASDAG dropped 0.5%. Now, I initially thought that yesterday was going to be a positive day after the solid inflation report and the trade framework between the U.S. and China. But once we got more details about the trade framework, the markets weren't as enthusiastic. The Wall Street Journal reported that China is lifting its ban on rare earth metals to the U.S., but just for the next six months. And in exchange, the U.S. is lifting the ban on the export of jet engines and some critical parts. Also, I should point out that there hasn't been any reports of the U.S.

easing export restrictions on AI chips. I think some people were hoping that was going to happen, but no reports so far. Here's the key thing. Tariff rates on Chinese imports will be staying at 55% moving forward. That 55% includes the 30% that President Trump implemented this year, plus the 25% on specific products that have been in place since his first term. So President Trump seems to be okay with the higher tariff rates on Chinese imports, but he's not okay with the current level of interest rates.

He took another shot at Fed Chair Jerome Powell yesterday, saying that the Fed should cut interest rates by a full percentage point after the cool CPI report. We talked more about that report on yesterday's episode, so go check that out if you missed it. And honestly, I wouldn't be surprised if we have more voices pushing for Jerome Powell to cut rates at this point. Inflation has cooled and tariffs haven't sparked a flare-up yet. But despite all that, the markets are pricing in a less than 1% chance of a rate cut at next week's Fed meeting. So it's probably not going to happen, at least not in June. But then again, a lot of people thought that the Indiana Pacers were going to get swept by the Oklahoma City Thunder in the NBA finals, and they're up two to one. So I guess

anything is possible. We'll have to see what Jerome Powell says at next week's Fed meeting, which is on Wednesday. But yeah, I expect a lot more posts from President Trump pushing for Powell to lower rates. Let's run through some headlines. It is IPO season and the latest name hitting the public markets today is Chime, the online NeoBank known for its no-feas services. You guys might have seen commercials for Chime. It's pretty popular, especially amongst younger consumers. And Chime is pricing its IPO at $27 a share, which is above the expected range of $24 to $26 a share. And in the process, they're going to raise $864 million. And this would give the company a fully diluted valuation of $11.6 billion. Now, to be fair, that is less than half of their $25 billion peak valuation they had back in 2021.

but as I said many times in this podcast, 2021, it was almost not real. So we can't really count the valuations from back then. Now, Chime might be an online banking app, but they really want to be seen as a tech company. In fact, the company doesn't even technically have a banking charter. They offer banking services through banking partnerships with Bank, court bank and Stride Bank.

So Chime is essentially a modern and pretty app layer sitting on top of traditional banks. And I mean, you can't fault them for that strategy because it's worked. They have over 8.5 million users and they make money through interchange fees. That's the tiny cut they get every time someone swipes their chime debit card. The company brought in $519 million in revenue in the first three months of 2025, which is up 32% from a year ago. The stock will trade under ticker symbol C-H-Y-M,

and it's expected to start trading sometime between 11 a.m. and 1 p.m. Eastern time today. You can follow the debut of the stock on the public app if you're curious to see how they perform right out of the game. We've seen many IPOs moonshot on day one. That's what happened to circle last week. So it'll be interesting to see how chime does. Let's shift gears and talk about Tesla. Tesla is suing a former engineer for stealing trade secrets regarding their optimist humanoid robots.

This lawsuit is directed at engineer Jay Lai, who worked on the robot's hand-censor division for two years. And according to Tesla's lawsuit, Lai had access to sensitive optimist data. And shortly after leaving the company in 2024, he launched his own robotic startup called Perception. And here's where it gets interesting. Within five months of launching, Perception announced that they had built a pair of advanced robotic hands that looked suspiciously similar to Tesla's own design.

So Tesla claims that Jay Lye downloaded Optimus's data onto two smartphones before leaving, and he's now using that knowledge to build his own robot. And that's a big deal because building robot hands, is one of the hardest parts of creating a humanoid robot. The hands are what unlock real-world utility from folding laundry to flipping burgers and other labor needs. So yeah, we got ourselves a good old-fashioned corporate espionage case. And the reason that Tesla has taken this so seriously

is because that competition in the robot space is heating up. The robot company Figure AI, which is backed by Jeff Bezos, raised $675 million earlier this year, and they're already testing the robots inside of BN. The company is also reportedly in talks with UPS as well. There's other robot companies like Boston Dynamics, Agility Robots, Apptronic, and now perception. It's clear that the robot wars are heating up.

Let's talk about some stocks making moves today. Shares of Oracle are getting a boost this morning following their earnings report that showed revenues were up 11% and their profits topped 3.4 billion. dollars, both those numbers beating Wall Street estimates. Their cloud infrastructure business continues to crush it growing 52% last quarter, and the company expects 70% growth in the upcoming fiscal year. The demand is so high for their cloud business that Larry Ellison said they had a mystery client who tried to buy up all their available capacity. Wonder who that was. But yeah, things are looking good for Oracle right now, and shares are up more than 7% this morning

in reaction to the earnings. Now, on the flip side, Bowie, Boeing shares are down this morning after reports of a tragic crash in India involving one of their planes. According to Indian media, a Boeing 787-8 dreamliner jet operated by Air India crashed on Thursday morning with all 242 people on board confirmed dead. Now, the cause of this crash is still unknown and investigations are underway. Anytime you have a plane crash, it's significant. But this especially because up until now, the Boeing 787 had no. fatal crashes on record. This is Boeing's flagship wide-body jet. It's a newer design that's often praise for its fuel efficiency and long-haul performance. But given this crash and Boeing's

checkered safety history, to say the least, going all the way back to 2018 and 2019, when their 737 max jets crashed, this is likely going to reignite concerns and scrutiny around Boeing's safety track record. The company has been trying to turn things around, but shares are down more than 6% this morning on this news. Boeing suppliers are also feeling they hit two. Spirit Aerosystems and GE Aerospace, which build key parts for the 787, are also trading lower this morning.

Let's wrap the show with a fun fact. Stablecoin operators like Circle and Tether now hold more short-term U.S. debt than China. That's a pretty wild stat. See, these stable coin companies buy liquid assets like money market funds and U.S. Treasury bills, to back their stable coin. So as more stable coins get minted,

they're buying up even more U.S. debt to back them. In fact, these days, the only institutions holding more short-term U.S. debt than these crypto players are J.P. Morgan in fidelity. That's it. And I think it's yet another reminder that crypto isn't just living in some internet corner anymore. Stable coins are now a legit bridge

between crypto and traditional finance. I mean, it's a very interesting space. We're actually diving way deeper into this topic on this weekend's deep dive episode. We're going to cover stable coins, circles IPO, and what it all means for the future of money. So keep an eye on your podcast feed for that episode or consider turning on notifications so you don't miss it. I mean, Circle stock after their IPO last week has been eye popping. Well, all right, guys, that's the rundown for today. Hope you guys enjoyed today's episode.

We got one more episode to wrap up the week. It's been kind of an interesting week. Things started off pretty slow, but then we picked up midweek, so it'll be interesting to see how things close out. And remember in tomorrow's episode, we're going to be answering some listener questions. So thank you to everyone that submitted a question. We'll try to get to as many as we can. Thank you guys again for listening. Shout out to Mike and Connor for all the help behind the scenes.

And we'll see you guys back here tomorrow.