Tesla tanks on Musk fallout 06/06/2025

HOT stories for today

US market wrap:

• Wall Street edged lower Thursday, even as market chatter on social media intensified. The S&P 500 fell 0.5%, while the Nasdaq Composite dropped 0.8%, dragged down by a steep 14% decline in Tesla after CEO Elon Musk clashed publicly with former President Donald Trump. The Dow Jones Industrial Average, which does not include Tesla, was relatively resilient, losing 108 points, or just under 0.3%.
• Investors also digested fresh signs of a slowing U.S. economy, raising concerns about the broader impact of ongoing trade tensions and the Federal Reserve’s next move. Adding to the uncertainty, markets are now turning their attention to Friday’s highly anticipated labor market report, one of the week’s most closely watched economic indicators. Even a call between Presidents Trump and Xi Jinping — in which both agreed to resume U.S.-China trade negotiations — failed to lift sentiment, as traders remain cautious awaiting more concrete progress.

Tesla tanks on Musk fallout

• Tesla shares plunged over 14% on Thursday, erasing nearly $200 billion in market value just days after CEO Elon Musk officially exited the federal "DOGE" initiative. The drop pushed Tesla’s valuation below $1 trillion for the first time since May 9. What spooked investors? A growing public feud between Musk and former President Donald Trump, unfolding across social media. Musk claimed Trump would’ve lost the election without his support — a remark that triggered political backlash and cast new uncertainty over Tesla’s policy future.
• Analysts say Thursday’s sharp selloff reflects more than just politics: a potentially overhyped post-earnings rally, market-share losses abroad, and rising anxiety ahead of next week’s robotaxi pilot launch in Austin, which could swing investor sentiment. Despite the drama, Tesla remains in the spotlight, with Musk’s bold tech bets and political entanglements continuing to move the market — for better or worse.

Stock’s on the move:

• Lululemon (LULU) — Shares of the activewear giant plunged 20% after issuing disappointing guidance. The company forecast Q2 earnings of $2.85 to $2.90 per share, well below the $3.29 analysts expected, according to LSEG. Lululemon also lowered its full-year outlook.
• DocuSign (DOCU) — The e-signature software firm tumbled 16% following weaker-than-anticipated billings growth. Q1 billings totaled $739.6 million, missing FactSet’s consensus of $746.2 million.
• Broadcom (AVGO) — The semiconductor stock fell over 3% after reporting Q2 free cash flow of $6.41 billion, trailing analyst estimates of $6.98 billion, per FactSet. However, earnings and revenue slightly exceeded expectations. Notably, AVGO had gained nearly 30% in the month leading up to the report.
• Rubrik (RBRK) — Shares edged down nearly 2% despite a Q1 beat, as the company guided for a Q2 loss of $0.33–$0.35 per share, matching Wall Street forecasts. The cloud data firm’s guidance was in line with FactSet expectations.

                                     Watchlist: TSLA, LULU, DOCU, AVGO, RBRK, BRZE, NX, NVDA



Today’s action

• Asia-Pacific markets saw a mixed session as investors digested the latest phone call between U.S. President Donald Trump and China’s Xi Jinping. Japan’s Nikkei 225 rose 0.37%, while the Topix gained 0.43%. In South Korea, the Kospi jumped 1.49% and the Kosdaq climbed 0.8%. 
• Meanwhile, U.S. stock futures were largely flat Thursday evening ahead of a crucial jobs report, which is expected to offer fresh insight into the strength of the U.S. economy. S&P 500 futures were little changed, Dow futures edged up 0.1%, and Nasdaq 100 futures dipped 0.1%. Earnings will also remain in focus Friday, after Broadcom (AVGO), Lululemon (LULU), and DocuSign (DOCU) fell in after-hours trading on weaker-than-expected results.

Bitcoin

• Bitcoin (BTC) dropped nearly 4% on Thursday, hitting an intraday low of $100,426 and rattling crypto markets. The slide marked the 29th consecutive day BTC has held above $100,000, setting a new milestone—but momentum appears to be weakening.
• The sharp move triggered $837 million in liquidations across the crypto market, according to Coinglass. Of that, $770 million came from long positions, with over $100 million in BTC longs wiped out in the hour the price hit its low. Altcoins weren’t spared, with many posting steep double-digit losses, underscoring the fragility of leveraged bets in the current climate.
  Watchlist: Bitcoin: 100 000-112 000, Ethereum:1500-2800, Solana: 80-183

Forex

• The Japanese Yen (JPY) weakened for a second consecutive session on Friday, pressured by disappointing household spending data and a broader risk-on mood fueled by optimism around renewed U.S.-China trade talks. The USD/JPY pair edged higher toward 144.00 during the Asian session, supported by a modest uptick in the U.S. Dollar (USD). Still, divergent policy expectations between the Bank of Japan and the Federal Reserve could help limit further downside for the Yen, especially ahead of the key U.S. Nonfarm Payrolls (NFP) report.
• Meanwhile, the EUR/USD pair extended its pullback from a two-month high of 1.1495, reached after Thursday’s widely expected 25 bps rate cut by the European Central Bank (ECB). The euro dipped to around 1.1440 in early Friday trade, as caution set in ahead of U.S. labor data.
  Watchlist: EUR/USD: 1.0700-1.1600, USD/JPY: 140-151

Basic Materials

• Gold (XAU/USD) regained some ground in early Asian trading Friday, bouncing off a late pullback from a multi-week high above $3,400. Dip buyers stepped in, but the metal remains range-bound as investors turn cautious ahead of the U.S. Nonfarm Payrolls (NFP) report. Optimism around renewed U.S.-China trade talks and a modest uptick in the U.S. Dollar (USD) could keep gold bulls in check. All eyes are now on the NFP data, which could shift expectations for the Federal Reserve’s rate-cut path and drive the next move in both USD and gold.
• Meanwhile, WTI crude oil hovered around the mid-$62 range, lacking clear intraday direction but on track for its first weekly gain in three weeks. Hopes for stronger fuel demand were buoyed by positive trade signals, as Trump and Xi agreed to resume negotiations to end the ongoing trade war.
  Watchlist: GOLD 2600-3500, US Oil: 55.60-70.00
  
   

Key Economic Events Today:

EST time
08:30 am: USD Unemployment Rate
08:30 am: USD Non-Farm Employment Change
03:00 pm: USD Consumer Credit



Earnings

BMO (Before the US Market opens)
ABM           ABM Industries Inc.
MANU        Manchester United Ltd.
AMC (After the US Market closes): Enjoy your weekend!
 

The TEFS Analyst team wishes you a successful day!