Stock Market Today: Markets Waver as Trump-Xi Call and Jobs Data Take Center Stage

Major Indexes Show Mixed Performance Amid Trade Tensions

U.S. stock markets displayed mixed performance on Thursday, June 5, 2025, as investors processed news of a phone call between President Donald Trump and Chinese President Xi Jinping, while also digesting concerning employment data. The major indexes showed modest movements by late afternoon, with the S&P 500 up 0.26% to 5,986.35, the Dow Jones Industrial Average increasing by 0.15% to 42,489.50, and the Nasdaq Composite gaining 0.35% to 19,528.70.

The conversation between the two world leaders, reportedly initiated by Trump, briefly lifted stocks earlier in the day. However, gains were limited as the call’s details failed to provide clarity on the next steps in trade negotiations. This uncertainty comes just weeks after a trade truce was agreed upon in Geneva, leaving investors cautious about the direction of U.S.-China relations.

Labor Market Concerns Mount Ahead of Critical Jobs Report

Today’s market movements were significantly influenced by disappointing economic data, as the Department of Labor reported that jobless claims reached their highest point in eight months. This concerning development follows yesterday’s ADP report showing private sector payrolls dropping to their lowest level in two years.

These labor market indicators have heightened the importance of tomorrow’s May jobs report from the Labor Department. Economists are expecting the report to show a slowdown in hiring, with consensus estimates projecting around 125,000 new jobs added in May, down from 177,000 in the previous month. The unemployment rate is expected to remain at 4.2%.

“The impact of tariffs is still going to be substantial in the second and maybe the third quarter as well. The surprise so far seems to be we’re not getting that much inflationary pressure,” said Ed Yardeni, Yardeni Research president, on CNBC’s “Closing Bell.”

Tech Stocks Show Mixed Performance

Major technology companies showed mixed performance on Thursday. Tesla (TSLA) dropped significantly, falling 8.93% to $302.40 amid an ongoing public feud between CEO Elon Musk and President Trump over the massive tax and spending bill currently before Congress.

Nvidia (NVDA) edged down 0.70% to $140.93, while Apple (AAPL) was also among the decliners. In contrast, MongoDB (MDB) surged 13.40% to $226.49 after the database software company reported better-than-expected results driven by strong AI-related demand.

Other tech giants showed more positive movement, with Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOG), and Meta Platforms (META) all advancing. Broadcom (AVGO) investors are awaiting the company’s quarterly earnings report, which will be released after today’s closing bell.

Notable Market Movers

Several stocks made significant moves today. Among the top gainers, Newegg Commerce (NEGG) soared 59.24% to $10.00, while Nebius Group (NBIS) jumped 25.20% to $49.32. First Majestic Silver (AG) rose 16.16% to $8.45.

On the losing side, Brown-Forman Corporation (BF-B) fell 17.22% to $27.51, while PVH Corp. (PVH) dropped 16.71% to $67.36. Ciena Corporation (CIEN) declined 13.40% to $72.57.

Upcoming Market Events to Watch

Investors are closely monitoring several key events that could impact markets in the coming days:

1. **May Jobs Report**: The Labor Department will release its comprehensive employment report on Friday, June 6, providing crucial insights into the health of the U.S. labor market.

2. **Consumer Credit Data**: Also on Friday, consumer credit figures for April will be released, with economists expecting an increase of approximately $10.2 billion.

3. **Inflation Data**: Next week brings important inflation readings, with the Consumer Price Index (CPI) for May scheduled for release on Wednesday, June 11, followed by the Producer Price Index (PPI) on Thursday, June 12.

4. **Federal Reserve Speakers**: Several Fed officials are scheduled to speak in the coming days, including Federal Reserve Governor Adriana Kugler and Philadelphia Fed President Patrick Harker later today.

Market Outlook

Despite recent volatility, the broader market has shown resilience in 2025. The S&P 500 and Nasdaq Composite posted their biggest monthly gains last month since November 2023, as concerns about President Trump’s tariff plans had temporarily subsided while corporate earnings remained strong.

However, optimism in the current state of the U.S. economy has seen a rapid decline throughout 2025. After a sharp peak following President Trump’s reelection, hope for a stable economy has reportedly dropped 40% in less than six months, according to Bloomberg.

As markets navigate through trade tensions, labor market concerns, and upcoming economic data, investors remain cautious but attentive to opportunities in this dynamic environment.