Thursday saw a certain level of uncertainty in the stock market as investors eagerly anticipated updates on tariff discussions between the U.S and its trade partners. A conversation that lasted around 90 minutes happened on the previous day between President Donald Trump and the Chinese President Xi Jinping, focusing on the nations’ trade activities. Following their conversation on Truth Social, Trump expressed that it was a constructive one, with a number of trade complexities especially relating to ‘rare earths’ among other topics, having been discussed and clarified.
According to the U.S. President, plans are underway for additional talks involving high-ranking delegates from both the U.S. and China. This is expected to facilitate the continuation of trade talks. The possibility of increased friction between these two significant trading countries, in the wake of recent news about a brief truce in trade operations conducted in mid-May, instigated fluctuations in the market.
During this day, the value of the stocks fluctuated, but the shifts were not as drastic as those seen over the past few months. By the time the market closed for the day, the Dow Jones Industrial Average stocks had dropped by 0.3%, closing at 42,319. Similarly, the S&P 500 index ended the day at 5,939, recording a 0.5% drop. The tech-inclined Nasdaq Composite experienced a slightly higher drop of 0.8%, closing at 19,298.
Elon Musk’s Tesla (TSLA) was among the greatly affected stocks on this day, witnessing a dramatic 14.3% reduction. This followed a noticeable difference in stance between Trump and Musk. The latter had recently stopped his cost-cutting endeavors in Washington, D.C., choosing instead to focus on his business ventures.
While Musk’s departure seemed to have happened on a high note with the President, his recent remonstrations against Trump’s ‘big, beautiful’ tax law seems to have amplified the discord between them. Trump countered Musk’s criticisms on Truth Social revealing that his removal of an ‘EV Mandate that coerced everyone to purchase Electric Cars’ was what set off Musk.
In contrast, Circle Internet Group (CRCL)’s stocks saw an impressive surge after its IPO. The stablecoin issuer began trading on Thursday, opening at $69. The crypto stock’s IPO was priced at $31 per share on Wednesday evening, which was notably higher than the previously projected range of $27 to $28. Additionally, it soared to an intraday peak of $103.75 before settling at $83.23.
Given the recent favorable actions towards cryptocurrency by the Trump administration, the crypto market is currently enjoying a surge. Under such conditions, the stock of Circle Internet Group might see further growth, particularly if the GENIUS Act comes to fruition. This proposed legislation intends to establish a regulatory framework for stablecoins.
The Labor Department reported an increase in initial jobless claims by 8,000, reaching 247,000 last week, a figure higher than the 236,000 projected by economists. This is one of the most recent indicators of a slowdown in the job market. This data release occurs just before tomorrow’s expected release of the May jobs report, which is predicted to demonstrate a 125,000 increase in nonfarm payrolls for April.
Scott Helfstein, the Global X Head of Investment, observes that job growth has been a significant contributor to the U.S. economy. Therefore, the release of Friday’s job report will be exceedingly important in analyzing the difference between essential fundamental data and high-frequency survey data.