Track Markets Live NowMajor Indexes Close Mixed Amid Trade Tensions and Economic Data
U.S. stock markets closed with mixed results on Thursday, June 5, 2025, as investors processed news of a call between President Trump and Chinese President Xi Jinping, while also digesting fresh economic data and corporate developments. The Dow Jones Industrial Average gained 0.15% to close at 42,492.43, while the S&P 500 edged down 0.02% to 5,969.36. The tech-heavy Nasdaq Composite slipped 0.07% to 19,446.42.
The markets zigzagged throughout the day following news that President Trump had spoken with Chinese President Xi Jinping about their ongoing trade standoff. Trump described the call as reaching a “very positive conclusion” and announced that Treasury Secretary Scott Bessent, U.S. Trade Representative Jamieson Greer, and Commerce Secretary Howard Lutnick would hold follow-up meetings with their Chinese counterparts.
Tesla Shares Tumble Following Trump-Musk Feud
One of the day’s biggest market movers was Tesla (TSLA), which saw its shares plummet 8.93% to $302.40 after a public spat erupted between CEO Elon Musk and President Trump. The feud centered around Musk’s criticism of Trump’s giant tax-and-spending bill currently making its way through Congress.
After Hours Movers and Earnings Reports
In after-hours trading, several companies made significant moves following earnings releases. Broadcom (AVGO) was closely watched as the AI chip maker reported earnings after the closing bell. Other notable after-hours gainers included Liminatus Pharma (LIMN), which jumped 12.96% to $26.50, and Circle Internet Group (CRCL), which rose 9.46% to $84.16.
Petco Health and Wellness Company (WOOF) gained 1.69% in after-hours trading to $3.62 following its quarterly report. Samsara (IOT) also edged up 0.55% to $47.66 after hours.
MongoDB (MDB) was another standout performer, with shares popping nearly 12% after the database software maker beat expectations on both top and bottom lines and raised its fiscal 2026 outlook.
Economic Data Points to Mixed Signals
Thursday’s economic data painted a mixed picture of the U.S. economy. The trade deficit, a key issue for the Trump administration, fell to $61.6 billion in April, a steeper drop than economists had forecast. This followed a record high in March as businesses rushed to stockpile ahead of tariff implementations.
However, initial jobless claims hit their highest level since October last week, according to the Labor Department’s report, raising concerns about softening in the labor market. This follows Wednesday’s private sector payrolls report that showed just 37,000 jobs added in May, well below the Dow Jones forecast of 110,000.
Upcoming Market Events to Watch
Investors are now turning their attention to Friday’s crucial employment situation report, which will provide a more comprehensive view of the labor market. This report has taken on added significance following the weaker-than-expected private payrolls data earlier in the week.
The Federal Reserve’s next policy meeting is scheduled for June 17-18, which will include a Summary of Economic Projections that could provide insights into the central bank’s thinking on interest rates for the remainder of 2025.
Corporate Earnings Calendar
Friday will see the market digesting Thursday’s after-hours earnings reports, while looking ahead to next week’s slate of corporate results. Notable companies that reported earnings on Thursday included Brown Forman (BF), which saw its Class B shares fall 17.22% to $27.51, making it one of the day’s biggest losers.
Companies scheduled to report earnings in the coming days include Lululemon Athletica (LULU), DocuSign (DOCU), and Vail Resorts (MTN), which could provide further insights into consumer spending and business investment trends.
Market Outlook and Analyst Perspectives
Despite recent volatility, the major U.S. indexes are tracking for gains this week. The S&P 500 is up 1%, the Dow has added 0.4%, and the Nasdaq has jumped 1.8% week to date.
However, analysts remain cautious about the impact of tariffs on corporate profits in the coming quarters. BlackRock CEO Larry Fink warned that “if the tariffs are instituted over the next five months, I think we’re going to see very elevated inflation.” Ed Yardeni of Yardeni Research noted, “The impact of tariffs is still going to be substantial in the second and maybe the third quarter as well.”
As the earnings season nears its end, approximately 78% of S&P 500 companies have reported higher-than-expected earnings, according to FactSet data. However, for the small proportion of companies that have provided guidance for the current quarter, weak outlooks outnumber strong ones, suggesting potential challenges ahead.