The Thursday session at Wall Street ended in declines in the main indexes. At the center of attention there were lowering over 14 percent. Tesla's shares, because investors reacted nervously to a sharp exchange of sentences between US President Donald Trump and the main shareholder of the car manufacturer Elon Musk.
Dow Jones Industrial at the closure fell by 0.25 percent and amounted to 42,319.74 points S&P 500 lost 0.53 percent at the end of the day and amounted to 5,939.30 points During the S & P500 session, he almost touched the level of 6,000 points. Nasdaq Composite lowered by 0.83 percent until 19,298.45 points The index of companies with medium capitalization Russell 2000 drops by 0.05 percent. and is 2,097.35 points The VIX index grows by 4.94 percent, to 18.48 points
Elon Musk went crazy – wrote on Thursday US President Donald Trump in his social network Truth Social, referring to a former close collaborator, billionaire and owner of Tesla. Trump wrote that “Elon +was exhausted +” and that he asked him to leave. He also assessed that the billionaire “went crazy” and suggested that he could end the contracts concluded between the American government and Muska.
This is the continuation of the Thursday exchange of sentences between the president and Musk, who ended his work for the White House last week. Musk headed the dog, i.e. the government performance department.
On Friday, Trump officially thanked him for his cooperation and called the billionaire one of the biggest business leaders in the world. He added that the boss of Tesla and Spacex, who “did a fantastic job”, will continue to “fall into Washington”. In turn, Musk assured that he would still be Trump's “adviser and friend”. On Thursday, Trump admitted that he did not know if he would still have a good relationship with a billionaire who criticizes his draft budget act, and admitted that he was disappointed with him.
Musk replied that “he doesn't care” and decided that without his support Trump would not win the election. “What a ingratitude” – he added. He also asked Internet users if it was time to set up a new political party in the USA. In response to a sharp exchange of sentences between President Trump and Elon Musk Tesla shares fell over 14 percent
The US and China agreed to temporarily lower the tariffs in May, which caused rapid increases in the action this month, because investors hoped that the worst turmoil in commercial policy was behind them.
The S&P 500 index increased by over 6 percent. In May, noting the best month from November 2023, like Nasdaq. Recently, however, growing tensions between the USA and China have worried investors.
“It's good that they talk, but I think that the contract with China will appear long after other contracts with India, Japan and other countries,” said Jay Hatfield, CEO Infrastructure Capital Advisors.
“The chances of achieving a solution quickly seem extremely low” 0, “he added.
Recently, signs of weakness on the labor market – the number of applications for unemployment benefit last week was 247,000, which is an increase of 8,000 compared to the previous week and is a number higher than Dow Jones's estimates, which was 236,000.
It happened a day after the estimates of the increase in the number of employees in the private sector in May amounted to only 37,000, which is a result much lower than Dow Jones's forecasts at 110,000, and also raised investors' fears regarding the weakening labor market and the impact of this situation on the economy.
The series of data from the labor market this week raises the rate for May employment data outside agriculture on Friday. Economists surveyed by Dow Jones expect the report to show an increase of 125,000 this month, which would be 52,000 less than in the previous month.
WTI oil on nymex is more expensive by 0.88 percent up to USD 63.40 per barrel, and Brent grows by 0.74 percent up to USD 65.34. (PAP Biznes)
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