The S&P 500 fell on Thursday, spurred by a drop in shares of electric vehicle maker Tesla.
The broad market index dipped 0.53% and closed at 5,939.30, while the Nasdaq Composite pulled back 0.83% to end at 19,298.45. The Dow Jones Industrial Average dropped 108 points, or 0.25%, to settle at 42,319.74.
Tesla was a big laggard in the session, down more than 14% and losing its trillion-dollar market cap status. Shares slid after President Donald Trump said he was “very disappointed” in CEO Elon Musk. Musk shot back at the president, saying in a post on X that “without me, Trump would have lost the election.” The feud further intensified after Trump called Musk “CRAZY” and signaled that he might cut his companies’ government contracts.
Stocks were volatile during the session after Beijing said Thursday that Trump and China President Xi Jinping held a phone call, which was initiated by Trump, according to Beijing’s Ministry of Foreign Affairs and the Chinese embassy in the U.S.
Trump said in a post on Truth Social that it was a “very good phone call” with Xi, but it was still unclear what was accomplished from the communication between the two leaders. Trump said the two countries’ trade teams would be meeting again “shortly.”
The U.S. and China agreed to temporarily lower tariffs in May, propelling stocks to sharp gains for the month as investors hoped the worst of the trade policy turmoil was behind them. The S&P 500 rose more than 6% in May, scoring its best month since November 2023, along with the Nasdaq. Recently, however, escalating tensions between the U.S. and China have concerned investors.
“It’s positive they’re talking, but I think that the China deal will come well after other deals with India and Japan and other countries,” said Infrastructure Capital Advisors CEO Jay Hatfield. “The chances of just quickly coming to some resolution seems extremely low.”
All eyes on jobs
The labor market has been showing signs of softening lately, as jobless claims for last week came in at 247,000, an increase of 8,000 from the week before and more than the Dow Jones estimate of 236,000.
That comes one day after an estimate of private sector payrolls rose by just 37,000 in May, coming in sharply below the Dow Jones forecast for 110,000 and raising investors’ worries about a softening job market and the impact on the economy.
The string of labor market data this week raises the stakes for May’s nonfarm payrolls reading on Friday. Economists polled by Dow Jones are expecting the report to show a gain of 125,000 for the month, which would be 52,000 less than the previous month.
Stocks close lower on Thursday
The three leading indexes finished Thursday’s session in the red.
The S&P 500 plummeted 0.53% to close at 5,939.30, while the Nasdaq Composite declined 0.83%, ending at 19,298.45. The Dow Jones Industrial Average shed 108 points, or 0.25%, to finish at 42,319.74.
— Sean Conlon
DJT shares drop as Trump-Musk feud escalates
Trump Media & Technology Group shares dropped more than 7% Thursday afternoon, as the feud between Tesla CEO Elon Musk and U.S. President Donald Trump escalated.
— Sarah Min
Tesla stock losses deepen after Trump floats cutting government subsidies and contracts for Musk
Elon Musk receives a golden key from U.S. President Donald Trump in the Oval Office at the White House in Washington, D.C., U.S., May 30, 2025. REUTERS/Nathan Howard
President Donald Trump and Elon Musk are continuing to trade barbs on social media, and Tesla‘s stock is continuing to slide.
Shares were down more than 12% after Trump said on Truth Social that Musk went “CRAZY” after being asked to leave his government role and that cutting the government subsidies and contracts to Musk’s companies would be “the easiest way to save money in our Budget.”
Musk, meanwhile, said on X that the assertion that he went “crazy” was “an obvious lie” and also started a poll about whether it is time to create a new political party in the U.S.
— Jesse Pound
MP Materials jumps after Trump takes action to boost rare earth production
Shares of the miner MP Materials jumped more than 6%, after Trump removed some restrictions on the Defense Production Act in an effort to boost rare earth production in the U.S.
Trump removed a terms of sales requirement that could allow the federal government to offer an above market price for critical minerals.
MP Materials owns the only operating rare earth mine in the U.S. in Mountain Pass, California.
— Spencer Kimball
Stocks have room to go higher, Deutsche Bank’s Binky Chadha says
Traders work on the floor at the New York Stock Exchange (NYSE), on the day of Circle Internet Group’s IPO, in New York City, U.S., June 5, 2025.
Deutsche Bank’s Binky Chadha is optimistic stocks can rise higher, even after the stock market’s recent gains, on growing confidence investors are past the worst of the tariffs.
“We think positioning, you know, has plenty of legs, basically, to go up, plenty of room to go up,” Chadha told CNBC’s “Money Movers” on Thursday. “If you think about the tariff impact, I mean, I think, you know, to us, the biggest indicator is, you know, look at the consumer companies reporting, very vulnerable to tariffs, but we don’t really see any signs of anybody going sort of back into the bunker.”
This week, the chief U.S. equity and global strategist raised his year-end S&P 500 forecast by 6.5%, to 6,550 from 6,150.
Chadha was one of the biggest bulls on Wall Street coming into 2025, with an original price target of 7,000, but cut his target in April after the severity of President Donald Trump’s initial tariff announcement shocked Wall Street.
— Sarah Min
Tesla stock slides as Trump says he’s ‘very disappointed’ in Musk
Shares of Tesla fell to their lows of the session after President Donald Trump said he was disappointed in the automaker’s CEO Elon Musk for criticizing the Republican tax-and-spending bill that recently passed the House of Representatives.
“I’m very disappointed in Elon. I’ve helped Elon a lot,” Trump told reporters at the White House.
Musk responded on social media site X by saying “whatever” and “such ingratitude.”
Shares of Tesla were last down 8%.
— Jesse Pound, Dan Mangan
Stablecoin issuer Circle soars 200% in NYSE debut after pricing IPO above expected range
Jeremy Allaire, CEO and co-founder of Circle Internet Group, the issuer of one of the world’s biggest stablecoins, reacts to the price of first trade, on the day of the company’s IPO, at the New York Stock Exchange (NYSE), in New York City, U.S., June 5, 2025.
Shares of Circle Internet Group soared 200% after the stablecoin company and its selling shareholders raised almost $1.1 billion in an initial public offering.
The stock opened at $69.50 on the New York Stock Exchange after its IPO priced at $31. At one point it surged as high as $103.
The New York-based company priced its IPO late Wednesday, far above this week’s expected range of $27 to $28 and an initial range last week of between $24 and $26, valuing the company Thursday at some $6.8 billion before trading began.
For more on the Circle IPO, check out our full story here.
— Tanaya Macheel
Fed Governor Kugler sees inflation threats keeping policy on pause
Dr. Adriana Kugler, member of the Board of Governors of the Federal Reserve, speaks to The Economic Club of New York in New York City, U.S., June 5, 2025.
Federal Reserve Governor Adriana Kugler said Thursday she expects tariffs to result in price increases that will require the central bank to hold interest rates steady.
“I see greater upside risks to inflation at this juncture and potential downside risks to employment and output growth down the road, and this leads me to continue to support maintaining the [Federal Open Market Committee’s] policy rate at its current setting if upside risks to inflation remain,” Kugler said in a speech to the Economic Club of New York.
Kugler sees three threats to inflation: an increase in survey-based short-run inflation expectations; “opportunistic pricing” from companies taking advantage of that tariffs that could extend even to items not directly impacted by tariffs; and decreasing productivity as companies cut back on investment.
The Fed next meets June 17-18 and is largely expected to hold rates steady. As a governor, Kugler is a permanent FOMC voter.
— Jeff Cox
Materials sector looks like a breakout candidate, BTIG’s Krinsky says
The often overlooked materials sector could be poised to thrust itself onto the main stage, according to BTIG technical strategist Jonathan Krinsky.
“Materials are the smallest sector in the S&P 500 representing less than a 2% weight. As a result, they don’t get much attention, but we think the set-up is there for a move higher as they breakout of a long downtrend and multi-month base,” Krinsky said.
Over the past year, the Materials Sector Select SPDR Fund (XLB) is down 3%, compared to a gain of more than 11% for the S&P 500.
One factor to keep in mind with materials is the impact of the dollar. The ICE U.S. Dollar Index is down about 9% this year, which should be a helpful to these stocks, Krinsky said.
“A reversal in the DXY could be a potential headwind to the materials sector, but as of now the dollar remains in a firm downtrend which is a tailwind,” the note said.
— Jesse Pound
Silver jumps to highest level in 13 years
The price of silver futures jumped 4% on Thursday to trade above $36 per troy ounce and hit the highest level since 2012. Silver has now gained more than 20% year to date but is still lagging behind gold.
— Jesse Pound
Brown-Forman shares on pace for worst day on record after earnings
Shares of Brown-Forman declined more than 15% in morning trading Thursday after its latest quarterly results missed expectations.
The bourbon maker reported earnings for its fiscal fourth quarter of 31 cents per share, below the 34 cents per share that analysts surveyed by LSEG were anticipating. The company also posted revenue of $894 million, likewise coming in below the consensus estimate of $967.4 million
The move put the stock on track for its biggest single-day percentage decline ever. Its current worst day on record is March 20, 2020, when it fell 13.6%.
— Sean Conlon
Stocks open in positive territory
Stocks traded higher on Thursday morning.
Shortly after 9:30 a.m. ET, the S&P 500 advanced 0.2%, while the Nasdaq Composite gained 0.3%. The Dow Jones Industrial Average also climbed 48 points, or 0.1%.
— Sean Conlon
Trade balance posted record-setting decline in May
Container ships at the Port of Los Angeles on May 9, 2025 in San Pedro California.
The U.S. trade deficit with its global partners tumbled in May at its fastest pace in history following two months where companies sought to get ahead of President Donald Trump’s tariffs.
The goods and services shortfall plunged to $61.6 billion, its lowest level since September 2023 and the biggest one-month move in the number according to data going back to 1992, according to Commerce Department data Thursday. That was down $76.7 billion from April and lower than the $66.3 billion Dow Jones consensus estimate.
Exports rose $8.3 billion on the month, or 3%, while imports slid by $68.4 billion, or 16.3%. Companies had ramped up imports ahead of Trump’s April 2 “liberation day” tariff announcement.
— Jeff Cox
S&P 500 closed Wednesday at highest since Trump’s tariff ‘Liberation Day’
The S&P 500 closed Wednesday at a new, post April 2 high of 5970.81, eclipsing the prior high of 5963.60 on May 19. President Trump lifted the nation’s tariff rates in his “Liberation Day” announcement April 2.
The Nasdaq Composite, meanwhile, has closed at a new post April 2 in each of the past three trading sessions, ending Wednesday at 19,460.49. Dominated by the world’s largest technology companies, the Nasdaq took out its May 19 high on Monday June 2.
— Scott Schnipper
Jobless claims, labor costs post bigger increases than expected
A “Now Hiring” sign at a Journeys store in the Brooklyn borough of New York, US, on Tuesday, June 3, 2025.
Initial claims for unemployment compensation unexpectedly increased last week as angst over the jobs market accelerates, the Labor Department reported Thursday.
Claims totaled a seasonally adjusted 247,000 for the period ending May 31, up 8,000 from the prior week and higher than the Dow Jones estimate for 236,000. Continuing claims, which run a week behind, edged though the four-week moving average rise to its highest level since Nov. 27, 2021.
In related news, unit labor costs, which measure compensation against productivity, unexpectedly increased 6.6% in the first quarter, according to a revised estimate from the Bureau of Labor Statistics. Productivity fell 1.5%, more than the expected decline of 0.8%.
— Jeff Cox
ECB cuts key lending rate a quarter point as inflation eases
The European Central Bank lowered interest rates by a quarter percentage point Thursday, citing the likelihood that inflation and economic growth will continue to drift lower.
Investors were looking to see whether the ECB would continue its rate-cutting campaign, which now takes its deposit facility down to 2%, or less than half where the U.S. Federal Reserve is holding its key borrowing rate.
In its post meeting statement, the ECB said the decision was “based on its updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission.” Officials expect headline inflation to hit the 2% target this year, drop to 1.6% in 2026, then rise back to 2% the following year.
President Donald Trump has been urging the U.S. central bank to begin cutting, though markets largely expect that not to happen until September.
— Jeff Cox
See the stocks moving before the bell
These are some of the stocks making notable moves before the bell on Thursday:
- Five Below — Shares of the budget retailer climbed climbed 7.1% on a strong earnings first-quarter report and upbeat guidance for current-quarter revenue. Five Below earned 86 cents per share, excluding items, on $971 million in revenue, while analysts surveyed by LSEG forecasted 82 cents a share and revenue at $967 million.
- MongoDB — The developer data stock surged 17.3% after posting better-than-expected earnings for the first quarter. MongoDB earned $1 per share, excluding items, on $549 million in revenue, while analysts polled by LSEG anticipated 66 cents a share and $528 million of revenue.
- PVH Corp. — The apparel maker’s stock tumbled 7.9% after cutting second-quarter guidance for earnings per share, citing tariff impacts. That overshadowed a stronger-than-anticipated earnings report for the first quarter.
Click here for the full list.
— Alex Harring
Five Below shares pop after earnings
Shares of Five Below rose more than 8% in premarket trading Thursday after its latest quarterly results beat on the top and bottom lines.
The discount retailer posted adjusted earnings of 86 cents per share on revenue of $971 million for the first quarter, above the 82 cents per share and revenue of $967 million that analysts surveyed by LSEG were looking for.
The company also said that its finance chief, Kristy Chipman, is stepping down due to personal reasons.
The premarket move comes as shares have soared recently. The stock has gained more than 46% in the past month and nearly 42% in the past three, far outpacing the broader market in those periods.
— Sean Conlon
Planned job cuts up nearly 50% from a year ago, Challenger reports
Layoff announcements in May were 47% higher than the same month a year ago and on pace to soon eclipse the entire 2024 total, according to Challenger, Gray & Christmas.
The consulting firm reported Thursday that job cuts totaled 93,816 for the month, a 12% reduction from April as the impact from Department of Government Efficiency layoffs in Washington ebbed.
Though the pace eased a bit, the level of planned layoffs is 80% higher year to date than in 2024 and just 65,049 cuts away from eclipsing the entire year’s total.
“Tariffs, funding cuts, consumer spending, and overall economic pessimism are putting intense pressure on companies’ workforces. Companies are spending less, slowing hiring, and sending layoff notices,” said Andrew Challenger, the firm’s senior vice president.
— Jeff Cox
Jefferies downgrades Chewy
A cat sits next to a Chewy shipping box outside a house in Germantown, New York, on Feb. 19, 2024.
It’s time to lock in gains on Chewy, according to Jefferies.
The firm downgraded the pet products seller to hold from buy. It did raise its price target by $2 to $43, but that still implies downside of 9%.
“CHWY shares are up 41% this year and trade at 24x 2026 EBITDA…a valuation primed for a beat and raise. We think it’s unlikely in Q1,” analyst Kaumil Gajrawala wrote. “The pet macro looks relatively stable, and Chewy is performing well. But a CFO change is underway and shares reflect the positives (sponsored ads, web/app alt data). We see limited upside to numbers beyond the high-end of the guide at this point.”
— Fred Imbert
Stablecoin issuer Circle prices its IPO at $31 a share
Circle Internet Group priced its initial public offering at $31 a share on Wednesday, surpassing the expected range of $27 to $28 per share.
The offering price gives the stablecoin issuer a total market value of $6.8 billion.
The stock will trade on the New York Stock Exchange under the symbol “CRCL.”
Read more about Circle’s upcoming IPO from CNBC’s Tanaya Macheel here.
— Darla Mercado
Uber adds Palo Alto CEO Nikesh Arora to its board
Uber announced in a regulatory filing Wednesday that Palo Alto Networks CEO Nikesh Arora will be joining the rideshare company’s board of directors.
The announcement comes amid a broader series of executive changes seen at Uber this week, including the departure of head of delivery Pierre-Dimitri Gore-Coty and the promotion of Andrew Macdonald, head of mobility, to president and chief operating officer, Uber’s first since 2019. It also comes as Uber faces mounting competition in the robotaxi market.
Uber shares are up 38.4% year to date, significantly beating the broader market.
— Pia Singh
Five Below, MongoDB, Verint Systems among stocks moving after market close
A customer carries shopping bags outside a Five Below store in Hudson, New York, US, on Friday, March 15, 2024.
Check out the companies making headlines in after-hours trading:
- Five Below — Shares of the discount retailer added 2.5% on the back of strong first-quarter financial results and second-quarter guidance. Five Below reported adjusted earnings of 86 cents per share on $971 million in revenue, while analysts polled by LSEG called for 82 cents per share on $967 million. Five Below’s Chief Financial Officer Kristy Chipman is also leaving the company.
- MongoDB — The database software maker’s stock popped almost 12% in after-hours trading. MongoDB beat on top and bottom lines and lifted its fiscal 2026 outlook. The company reported adjusted earnings of $1 per share on revenue of $549 million. Analysts polled by LSEG called for earnings of 66 cents per share on revenue of $528 million.
- Verint Systems — The consumer engagement platform provider surged nearly 19%. In the first quarter, Verint reported adjusted earnings of 29 cents per share on revenue of $208 million. That surpassed the LSEG consensus estimate of 22 cents per share in earnings and revenue of $195 million.
For the full list, read here.
— Pia Singh
U.S. stock futures open little changed Wednesday night
Shortly after 6 p.m. ET on Wednesday, Dow Jones Industrial Average futures dipped by 22 points, or 0.05%. S&P 500 futures and Nasdaq 100 futures each shed about 0.1%.
— Pia Singh