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

US Economy: Jobless Claims Rise, Trade Deficit Narrows

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By Rita Nazareth

June 4, 2025 at 10:35 PM UTC

Updated on

June 5, 2025 at 8:39 PM UTC

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.