Market Snapshot for Thursday 6/5/2025
– S&P 500 – 5,939.30 (-0.53%)
– Dow Jones – 42,319.74 (-0.25%)
– NASDAQ – 19,298.45 (-0.83%)
Market Performance
Markets dropped as Elon Musk and President Trump faced off. U.S. stocks went south led by a massive 15% decline in Tesla’s share price. The stock fell as much as 18% during trading. The drama between the President and Musk escalated on Thursday with Trump threatening to cancel government contracts and subsidies for the electric vehicle maker. Earlier in the day markets had rallied in response to positive news on the U.S./China trade front. Trump commented “we’re in very good shape with China and the trade deal.” The Dow Jones Industrial Average fell nearly 0.3%. The S&P 500 was down more than 0.5%, and the tech-heavy Nasdaq Composite slid over 0.8%. The S&P 500 came close to touching 6,000 on Thursday, its highest level since February.
Economic Takeaways –
• President Trump spoke with Xi Jinping. “The call lasted about an hour and a half and ended very positively for both countries,” Trump posted on social media Thursday morning. “Our teams will meet soon at a location to be determined.”
• Federal Reserve governor Adriana Kugler warned Thursday she sees the risk of higher inflation from tariffs and supports keeping interest rates steady for now.
• Department of Labor data out Thursday showed weekly claims for unemployment benefits hit their highest level in eight months during the final full week of May.
• The total of continuing claims continued to hover near the highest level in nearly four years, as the US labor market continues to show signs of slowing.
• U.S. vehicle sales dropped sharply in May, falling to a seasonally adjusted annual rate of 15.65 million from 17.27 million in April, according to Wards Intelligence. Earlier in the year, sales had surged as consumers rushed to buy ahead of expected tariffs.
• The European Central Bank (ECB) lowered its key interest rates by 25 basis points, in line with expectations, pointing to inflation nearing its 2% medium-term target.
• As of early Thursday, futures markets were pricing in less than a 1% chance of a Federal Reserve rate cut in June, with the odds rising to nearly 30% for July, according to the CME FedWatch Tool. The probability of a cut in September climbed to over 75%, up from earlier in the week, following weaker-than-expected jobs and services data released Wednesday.
Gold –
• Safe-haven gold reversed course to fall nearly 1% on Thursday after U.S. President Trump and Chinese leader Xi Jinping agreed to further talks to settle trade disputes, while silver breached the key $35 level to reach a 13-year high.
• Spot gold fell 0.9% to $3,347.79 an ounce after trading 0.6% higher earlier. U.S. gold futures were down 0.8% at $3,371.60.
Oil –
• Oil prices settled higher on Thursday, recovering from the previous day’s drop, on news that the U.S. and China agreed to more trade talks.
• Brent crude futures settled up 48 cents, or 0.7%, at $65.34 a barrel. U.S. West Texas Intermediate crude settled up 52 cents, or 0.8%, at $63.37 a barrel.
Bitcoin –
• Bitcoin continued to fall and threatened the $100,000 mark.
• Shares of Circle Internet Group soared as much as 235% after the stablecoin company and its selling shareholders raised almost $1.1 billion in an initial public offering.
President Trump and Elon Musk Face Off
The fall out between Elon Musk and President Trump has surprised everybody this week. The two went into an all-out battle online against one another.
“Elon and I had a great relationship. I don’t know if we will anymore. I was surprised,” Trump said. “Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate. Such ingratitude,” Musk wrote on X.
“Elon was ‘wearing thin,’ I asked him to leave, I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY!,” Trump wrote on Truth Social.
Elon Musk said he would end use of Space Exploration Technologies Corp.’s Dragon spacecraft and called for the impeachment of President Donald Trump, as a disagreement between the former allies erupted into an all-out public feud on Thursday.
“The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts,” Trump wrote to his social media site.
The spat resulted in Tesla stock falling more than 14% amid its worst single-day market cap loss in history
Mortgage Rates Fell for First Time in a Month
Mortgage rates declined for the first time in a month, tracking a sharp drop in Treasury yields. With rates still hovering near 6.9%, elevated borrowing costs have continued to weigh on mortgage demand and homebuying activity during the typically busy spring season.
According to Freddie Mac, the average 30-year fixed mortgage rate slipped to 6.85% this week, down from 6.89% the week prior. The average 15-year rate also edged lower to 5.99%, compared to 6.03% a week ago.
“We have been in a very, very narrow range here for over a year,” said Don Roberts, vice president and mortgage field manager at Johnson Financial Group in Kenosha, Wis. “It just can’t seem to find a breakthrough.”
Top Gainers
Several stocks experienced significant gains. Some of the top gainers included:
• Newegg Commerce, Inc. (NEGG) 67.68%
• Nebius Group N.V. (NBIS) soared by 17.54%
• EchoStar Corp. (SATS) exploded 17.47%
• Greif, Inc. (GEF) surged 15.63%
• First Majestic Silver Corp. (AG) rose 15.52%
• Greif, Inc. (GEF-B) moved up 13.30%
• MongoDB, Inc. (MDB) jumped 12.84%
• Scholar Rock Holdings (SRRK) spiked 11.13%
• The Scotts Miracle-Gro Company (SMG) moved up 10.90%
• Oscar Health, Inc. (OSCR) surged 10.60%
Top Losers
The top US stock losers today, based on percentage change included:
• PVH Corp. (PVH) moved lower 17.96%
• Brown-Forman Corp. (BF-B) moved lower 17.92%
• Brown-Forman Corp. (BF-A) sank 17.27%
• Lyell Immunoharma, Inc. (LYEL) fell 14.92%
• Tesla, Inc. (TSLA) moved down 14.26%
• Ciena Corporation (CIEN) moved lower 12.92%
• The Descartes System (DSGX) sank 12.12%
• Trump Media & Technology Group Corp. (DJT) dragged 8.04%
• Rigetti Computing, Inc. (RGTI) moved down 7.87%
• Palantir Technologies, Inc. (PLTR) slumped 7.77%
Notables
• Lululemon (LULU) stock plunges 20% as company’s second quarter outlook misses Wall Street estimates.
• Broadcom (AVGO) edged up 0.75% in pre-market trading Thursday ahead of its earnings release after the close, as investors look for insights on AI chip demand. But the focus is likely to shift to Broadcom’s forward guidance, especially in a market where any signs of deceleration can trigger sharp selloffs—as seen with CrowdStrike (CRWD), which dropped despite strong results due to a cautious revenue outlook.
• Ciena (CIEN) sank 7.6% pre-market after missing earnings expectations, even though revenue came in ahead of Wall Street forecasts. The company noted a “positive network infrastructure spending environment” and disclosed it had repurchased 1.2 million shares.
• MongoDB (MDB) surged 16.3% before the bell after delivering both earnings and guidance that topped analyst estimates.
• Five Below (FIVE) climbed 7.6% in early trading, boosted by a strong earnings report.
• Visa (V) and Mastercard (MA) each gained about 0.5% in the morning session, trading near all-time highs. Visa received an upgrade from Mizuho, and strength in credit card stocks is being viewed as a signal of consumer resilience.
• Tesla (TSLA) declined more than 2% after reports showed a drop in vehicle sales across several European markets in May.
• Micron (MU) rose 1.6% pre-market after Mizuho raised its price target from $124 to $130, citing expectations for high bandwidth memory revenue to grow 55% annually through 2027.
• Cracker Barrel (CBRL) gained 3.8% after beating earnings estimates and reaffirming its fiscal 2025 guidance.
• Palantir (PLTR) fell as much as 5% in afternoon trading following a Semafor report that Republican privacy advocates in Congress are criticizing the Trump administration’s collaboration with the company.
• Amazon (AMZN) advanced up to 2% Thursday morning after a positive meeting between the U.S. President and China’s President Xi Jinping. Amazon benefits from strong sourcing ties to China.
• Procter & Gamble (PG) announced it will eliminate 7,000 jobs, or roughly 6% of its global workforce.
• PVH Corp (PVH), parent of Calvin Klein, dropped 8% pre-market after slashing its profit outlook for the year, citing weakness in the U.S., China, and tariff-related pressures.
• Robinhood (HOOD) rose 1% after Bank of America named it a “prime candidate” for inclusion in the S&P 500 Index, with rebalancing news expected tomorrow.
• Trump Media and Technology (DJT) took a key step toward launching a publicly traded crypto investment product Thursday morning. The newly formed Truth Social Bitcoin ETF business trust filed its S-1 with the US Securities and Exchange Commission to register the new exchange-traded fund licensing Trump Media’s social media brand. The ETF will trade on the NYSE Arca.
What to Watch Tomorrow:
Jobs data is in focus. Investors will be watching the U.S. labor report for signs that the cracks emerging in ADP hiring data and unemployment-insurance claims this week are visible in the benchmark labor-market release. The consensus is for payroll gains to slow in May, but remain relatively healthy at 125,000, and for the unemployment rate to be unchanged at 4.2%.
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