Stocks Fall as Trump-Musk Fight Sinks Tesla by 14%: Markets Wrap

(Bloomberg) — Stocks fell alongside Treasuries as online squabbling between President Donald Trump and Elon Musk knocked down Tesla Inc., weighing heavily on the megacap tech space.

While equities closed away from session lows, the Nasdaq 100 dropped almost 1%. Tesla sank 14% as Trump proposed ending Musk’s government contracts and subsidies after his onetime adviser attacked the Republican tax-policy bill. Earlier gains in equities were driven by hopes tensions between the US and China would ease as Trump and Xi Jinping agreed to further trade talks.

Subscribe to the Stock Movers Podcast on Apple, Spotify and other Podcast Platforms.    

On the eve of the all-important jobs data, an unexpected jump in unemployment claims added to speculation the Federal Reserve will cut rates at least twice this year.

Economists see payrolls rising by 125,000 after job growth in March and April exceeded projections. That would leave the average over the past three months tracking a still-solid 162,000. The unemployment rate is seen holding at 4.2%.

Corporate Highlights:

• Broadcom Inc., a chip supplier to companies like Alphabet Inc. and Apple Inc., gave a lackluster revenue forecast for the current quarter, suggesting that the AI spending frenzy isn’t as strong as some investors anticipated.
• Lululemon Athletica Inc. trimmed its profit outlook for the full year and projected lower-than-expected sales for the current quarter.
• Circle Internet Group Inc. surged after the company and some of its shareholders raised nearly $1.1 billion in an initial public offering that was upsized twice amid strong demand.
• Brown-Forman Corp., owner of the Jack Daniel’s brand, tumbled on results that trailed expectations while projecting a sales decline for the current fiscal year.
• Kimberly-Clark Corp. has agreed to sell a majority stake in its global Kleenex and tissue businesses outside of North America to a newly-formed venture with Brazilian pulp supplier Suzano SA.

Some of the main moves in markets:

Stocks

• The S&P 500 fell 0.5% as of 4 p.m. New York time
• The Nasdaq 100 fell 0.8%
• The Dow Jones Industrial Average fell 0.3%
• The MSCI World Index fell 0.4%
• Bloomberg Magnificent 7 Total Return Index fell 2.2%
• The Russell 2000 Index was little changed
• Tesla fell 14%

Currencies

• The Bloomberg Dollar Spot Index was little changed
• The euro rose 0.2% to $1.1436
• The British pound rose 0.1% to $1.3572
• The Japanese yen fell 0.7% to 143.73 per dollar

Cryptocurrencies

• Bitcoin fell 2.6% to $101,936.68
• Ether fell 3% to $2,527.19

Bonds

• The yield on 10-year Treasuries advanced four basis points to 4.40%
• Germany’s 10-year yield advanced five basis points to 2.58%
• Britain’s 10-year yield advanced one basis point to 4.62%

Commodities

• West Texas Intermediate crude rose 0.8% to $63.36 a barrel
• Spot gold fell 0.5% to $3,356.77 an ounce

©2025 Bloomberg L.P.