From Yahoo Finance: 2025-06-06 16:45:00

The split between Trump and Musk sparked a debate on billionaire power in American capitalism. Musk-linked trades plummeted as the feud escalated, causing losses in Dogecoin and Musk-related ventures. Despite a rocky week for casino investors, regular markets remained stable with the S&P 500 up 1.5% and the FANG index hitting a record high.

Tesla’s worst week since 2023 was fueled by projections of a $1 billion profit hit from Trump’s tax credit bill. Trump’s businesses expanded with the launch of the Truth Social Bitcoin ETF and other crypto-linked assets. Speculative gains have been significant, with some funds surging by 500% and coins like Dogecoin increasing in value.

The pandemic fueled speculative investing, but it surged further after Trump’s election win, supported by Musk’s campaign involvement. Musk’s influence, along with the meme ethos and crypto token connections, created a speculative frenzy insulated from traditional markets. Retail traders focused on narratives rather than fundamentals, driving the market’s volatility.

The rise of leveraged and derivative products targeting high-profile stocks challenges the idea of rational capital allocation in the market. Retail investors are attracted to these high-risk products, contributing to market volatility. Despite concerns, few are addressing the issues in the ETF industry due to its profitability.

Read more: Musk-Trump Breakup Exposes Cracks in Wall Street’s Meme Casino