TL;DR

Tesla plunges on Trump threats; S&P 500 holds near highs; jobless claims, trade deficit shift macro outlook.

Highlights

• S&P 500 trades near 5,912 after topping 6,000, up 6% in May; P/E multiples remain elevated.20
• Tesla falls as much as 11% after Trump threatens to end Musk-related subsidies and revokes the EV mandate; ~$100B in market cap erased.23
• US jobless claims rise to 247,000, highest since October; May layoffs up 47% YoY ahead of NFP.5
• US trade deficit narrows to $61.6B in April as China imports plunge 16.3% on 145% tariffs; Q2 GDPNow forecast at 4.6%.6
• Xi and Trump hold first direct call since tariff escalation; no details released on outcomes.1
• DeepSeek-R1 AI launch sparks $1T Nasdaq drop; US VC interest in China AI rises amid tech cost competition.13
• Gold and silver hit 13-year highs; silver up 24% YTD on safe-haven demand and weaker dollar.12
• Circle (CRCL) surges 123% above IPO price in NYSE debut, signaling strong demand for crypto infrastructure.4
• Brown-Forman drops 14.9% after warning on sales, margin pressure, and tariff risks; FY26 EBIT guidance below consensus.14
• Robinhood closes at record high above $70; platform assets top $250B with record trading volumes.15
• NATO ministers back new 5% of GDP defense spending target, signaling higher future military outlays.7
• Uber explores stablecoin payments and future Bitcoin acceptance for global transactions.18

Commentary

US equities are mixed into the close, with the S&P 500 near all-time highs but sector rotation and volatility evident.20 Tech sentiment remains fragile: Tesla ’s sharp decline, triggered by Trump’s public threats to end Musk-related subsidies and the removal of the EV mandate, erased nearly $100B in market value and weighed on broader growth names.23 The DeepSeek-R1 AI model launch, which contributed to a $1T Nasdaq drop, underscores the sensitivity of US tech valuations to both innovation abroad and US-China tech rivalry, especially as US venture capital shows renewed interest in Chinese AI.13

Macro data is sending conflicting signals. The labor market is showing early signs of cooling, with jobless claims at their highest since October and May layoffs up sharply.5 This could influence Fed expectations if Friday’s NFP confirms a slowdown. Meanwhile, the US trade deficit narrowed dramatically in April as tariffs slashed Chinese imports, boosting Q2 GDP forecasts but raising questions about supply chain stability and future trade retaliation.6 The first direct Xi-Trump call since the tariff escalation offers a possible opening for talks, but no concrete progress has been reported.1

Commodities and alternative assets are seeing strong flows. Gold and silver prices hit multi-year highs amid safe-haven demand, a weaker dollar, and persistent geopolitical risks.12 Circle’s blockbuster IPO and Robinhood ’s record platform assets highlight risk appetite in crypto and fintech,415 while Uber ’s exploration of stablecoins and Bitcoin points to ongoing payment innovation.18 Defensive names are not immune: Brown-Forman’s profit warning and tariff concerns drove a double-digit share price drop.14

NATO’s endorsement of a 5% GDP defense spending target signals a likely ramp-up in transatlantic military budgets, with potential implications for defense equities and government bond issuance.7 Traders should remain alert for late-session volatility in tech and watch for any trade headlines or labor market signals that could shift rate expectations into the week’s end.