05.06.202520:01:05UTC+00US Stocks Fall as Tesla Drags Tech Lower

Wall Street experienced a downturn on Thursday as investors contended with a public dispute between President Trump and Elon Musk, renewed uncertainties surrounding US-China trade relations, and increasing indications of labor market fragility. The S&P 500 decreased by 0.5%, the Dow declined by 107 points, and the Nasdaq, heavily weighted with technology stocks, fell by 0.8%, significantly impacted by Tesla's considerable losses. Tesla's shares tumbled 14.3% following President Trump's criticism of Musk's opposition to a significant tax-and-spending bill, hinting at the possibility of withdrawing government contracts and subsidies from Musk's enterprises. Earlier optimism was dampened after a call between Trump and China's President Xi Jinping yielded no tangible progress, despite plans for further trade discussions. At the same time, unemployment claims rose to 247,000 last week, marking the highest level in eight months and contributing to concerns about a decelerating labor market. Economists predict that May's employment report will indicate an increase of 125,000 jobs, a decrease from the previous month, and maintaining the three-month average at a still-robust 162,000.