US500 rebounds after Musk-Trump feud. All eyes on NFP.
- S&P 500 rebounds ahead of May jobs data
- Initial jobless claims spike
- Musk, Trump clash hits Tesla shares hard
- Trade talk optimism fades after Xi-Trump call
- Fed wary of tariff-driven inflation risks
US500 is rebounding after sliding 0.5% on Thursday, snapping a four-day winning streak as market nerves heightened ahead of the May NFP report.
Fresh signs of a cooling labor market highlighted by a spike in initial jobless claims amplified worries that economic momentum may be fading under pressure from tariffs and future policy uncertainty.
Tesla was at the center of the market turmoil yesterday, plunging 14% after Elon Musk publicly clashed with President Donald Trump.
Musk’s opposition to the administration’s tax bill, which proposes eliminating electric vehicle regulatory credits, prompted Trump to suggest pulling federal contracts and subsidies from Musk-led companies.
Gains sparked by Trump’s upbeat tone on trade talks with China faded quickly, as markets saw little real progress from his call with President Xi Jinping.
Traders are now watching the May jobs report closely, with expectations for a sharp slowdown in hiring.
NFP reading (June 6, 12:30 p.m. UTC):130K – expected, 177K – previous.
Fed officials also flagged inflation risks from tariffs, reinforcing the case for potentially holding rates steady for a longer amid the lingering economic uncertainty.