US stocks closed lower on Thursday as Tesla shares tumbled more than 14%, dragging the broader market into the red. The S&P 500 fell 0.53% to 5,939.30, the Dow lost 108 points, and the Nasdaq dropped 0.83%, with Tesla single-handedly accounting for much of that decline.
The EV maker’s steep selloff followed an extraordinary public spat between President Trump and Elon Musk, with Trump threatening to revoke government contracts and Musk retaliating by pledging to withdraw SpaceX from key NASA missions.
Tesla also lost its US$1tn valuation amid the fallout, with analysts warning of potential regulatory headwinds and lasting political damage.
All eyes now turn to Friday’s jobs report, with recent data showing signs of a cooling labour market. A weaker-than-expected number could raise recession fears—or bolster hopes for future Fed cuts.
Trump–Xi call revives trade talks, but structural issues remain
President Trump and Chinese President Xi Jinping held a 90-minute phone call. Both sides agreed to resume trade negotiations, reviving hopes for progress after recent tariff escalations.
However, the goodwill was tempered by unresolved disputes, particularly around rare earth exports and supply chain disruptions. Auto plants in Europe and Asia are already feeling the pinch.
ECB cuts rates but signals caution
In Europe, the ECB cut its benchmark rate by 25 basis points to 2%, citing falling inflation and a stronger euro. While the move was widely expected, President Christine Lagarde struck a cautious tone, saying the bank was in a “good place” but declining to confirm more cuts.
The euro rose 0.6% following the announcement, while the Stoxx 600 index dipped.
Retail wreck: Lululemon slashes outlook
After the bell, Lululemon shares plummeted nearly 22% in after-hours trading. Despite beating Q1 earnings expectations, the company cut its full-year guidance, citing cautious US consumers and mounting tariff pressures. Analysts pointed to elevated inventories and margin compression as growing concerns, with year-to-date share losses now exceeding 30%.
Broadcom beats, but profit-taking drags stock lower
Also after hours, chipmaker Broadcom posted strong results and lifted its Q3 guidance, driven by AI and networking demand. Nonetheless, shares fell 3.5% on what analysts described as “buy the rumour, sell the news” behaviour following a 75% rally since April.
Commodities and the dollar
Brent crude is trading 0.65% higher at US$65.28 a barrel.
WTI crude is trading 0.83% higher at US$63.37 a barrel.
Spot gold is trading 0.03% higher at US$3,353.77 an ounce.
Gold futures (COMEX) are trading 0.71% lower at US$3,375.10 an ounce.
One Australian dollar is buying 65.04 US cents.
Futures
The SPI futures are pointing to a 13 point fall.
