Tesla slumps 14% on feud with Trump, causing Wall Street to close lower

From Yahoo Finance: 2025-06-05 06:27:00

Wall Street’s indexes closed lower due to Tesla’s 14% drop, losing $150 billion in value during a public feud between Elon Musk and Trump. Musk criticized Trump’s tax legislation, causing instability in the stock market. Trump and Xi Jinping discussed tariff progress to ease tensions over critical minerals.

Investors were initially optimistic about Trump and Xi’s talks, but the Dow Jones, S&P 500, and Nasdaq fell on trade uncertainty and weak U.S. private payroll data. Kansas City Fed President warned tariffs may spark inflation. Fed Chair Powell remains cautious amid calls from Trump to slash rates.

May saw U.S. equities rally with S&P 500 and Nasdaq gaining since 2023, thanks to easing trade tensions. Brown-Forman and Procter & Gamble reported losses, with P&G cutting jobs. U.S. exchanges saw light trading volume. Declining stocks outnumbered advancers on both NYSE and Nasdaq.

Read more: Wall Street stocks end down as Tesla slumps 14% on Trump-Musk feud