The S&P 500 Index closed down 0.53% on Thursday, while the Dow Jones fell 0.25% and the Nasdaq 100 dropped 0.80%. Tesla’s shares declined over 14%, leading technology stocks lower after President Trump suggested ending government contracts for Elon Musk’s companies. Additionally, U.S. jobless claims rose by 8,000 to a 7-3/4 month high of 247,000, indicating a weakening labor market.
Economic data revealed that the U.S. trade deficit in April narrowed to $61.6 billion, below expectations of $66 billion, while Q1 nonfarm productivity was revised down to -1.5% and unit labor costs were revised up to 6.6%. The 10-year T-note yield increased to 4.40%. Markets are anticipating a 3% chance of a 25 basis point rate cut in the upcoming FOMC meeting on June 17-18.
Overseas markets showed mixed results, with the Euro Stoxx 50 up 0.10% and Japan’s Nikkei down 0.51%. Notable stock movements included Advanced Micro Devices (down 2%), Brown-Forman (down over 17%), and Dollar Tree (up over 9% after an upgrade by JPMorgan), reflecting varied responses to earnings reports and economic conditions.
