Back to top

Image: Bigstock

Stock Market News for Jun 6, 2025

Read MoreHide Full Article

U.S. stocks ended sharply lower on Thursday, fueled by a sharp decline in shares of Elon Musk’s electric vehicle company after he and President Donald Trump engaged in a multi-hour tirade against each other. All three major indexes ended in negative territory.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) declined 0.3% or 108 points, to close at 42,319.74 points.

The S&P 500 slid 0.5% or 31.51 points to end at 5,939.30 points. Consumer discretionary and consumer staple stocks were the worst performers.

The Consumer Discretionary Select Sector SPDR (XLY) fell 2.5%, while the Consumer Staples Select Sector SPDR (XLP) declined 1%. The Materials Select Sector SPDR (XLB) lost 0.6%. Ten of the 11 sectors of the benchmark index ended in negative territory.

The tech-heavy Nasdaq lost 0.8%, or 162.04 points, to finish at 19,298.45 points.

The fear-gauge CBOE Volatility Index (VIX) was up 4.94% to 18.48. Decliners outnumbered advancers on the NYSE by a 1.11-to-1 ratio. On Nasdaq, a 1.48-to-1 ratio favored declining issues.  A total of 17.3 billion shares were traded on Thursday, lower than the last 20-session average of 17.9 billion.

Tesla Weighs on Broader Market

Shares of Tesla, Inc. ((TSLA - Free Report) ) lost 14.3% on Thursday as the bitter feud between Musk and Trump intensified, with both taking shots at each other. Trump said that he was “very disappointed” with Musk. The Tesla CEO fired back, saying that “without me, Trump would have lost the election.”

The spat got uglier as Trump after Trump called Musk “CRAZY” and threatened to “cut his companies’ government contracts.” The verbal spat went on for hours, with Tesla losing nearly $150 billion in value. The company also lost its trillion-dollar status during Thursday’s session. Shares of Tesla have now fallen in four out of the past five sessions.

Trump and Xi Jinping Hold Phone Call

The Trump-Musk tirade unsettled the broader market. Meanwhile, the volatility continued as Trump and Chinese President Xi Jinping held a phone call to discuss tariff-related issues. Trump later said in a Truth Social post that it was a “very good phone call,” but it remains unclear what the two leaders discussed and what was achieved.

However, Trump said that the trade teams from both nations will soon meet for negotiations.

Meanwhile, investors are still digesting a disappointing jobs report released earlier in the week. According to a report from payrolls processing company Automatic Data Processing, Inc. ((ADP - Free Report) ), private payrolls increased just 37,000 in May, raising concerns over a slowing labor market. ADP has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Economic Data

The Labor Department reported that jobless claims totaled 247,000 for the week ending May 31, an increase of 8,000 from the previous week. The four-week moving average was 235,000, an increase of 4,500 from the previous week’s revised average of 230,500.

Continuing claims came in at s 1,904,000, a decrease of 3,000 from the previous week’s revised level of 1,907,000. The 4-week moving average was 1,895,250, an increase of 8,000 from the previous week's revised average of 1,887,250.

In other economic data released on Thursday, the U.S. trade deficit narrowed more than expected in April. The trade deficit contracted 55.5% to $61.6 billion, hitting the lowest level since September 2023.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Automatic Data Processing, Inc. (ADP) - free report >>

Tesla, Inc. (TSLA) - free report >>

Published in