Wall Street Takes a Dive as Trump-Musk Feud Imperils Tesla Stock
Wall Street is facing a tumultuous time due to the actions of Donald Trump and Elon Musk, two influential figures who are causing market unrest.
In a turn of events, Wall Street has taken a nose dive, with Tesla's stock plunging following a public spat between CEO Elon Musk and former US President Donald Trump. In a 14% loss, Tesla shed around $150 billion of its market value. The feud between Trump and Musk also dragged down overall market sentiment.
The day's turbulence on Wall Street has been marked by mixed performances, with the Dow Jones losing 0.2%, the Nasdaq dropping 0.8%, and the S&P 500 falling 0.5%. Earlier, the three major indices had shown gains of up to 0.8%.
The heated exchange between Trump and Musk triggered by the latter's criticism of a proposed tax and spending bill has sent Tesla's stock into a tailspin. According to Mark Spiegel, portfolio manager at Stanphyl Capital, "The impact on Tesla's stock is obvious," however, he doesn't see significant implications for the broader market beyond minor effects on indices and index funds.
Meanwhile, investors are keeping their fingers crossed for a resolution in the recently reignited trade spat between the US and China after a phone call between the two leaders. However, uncertainty remains high in the face of changing market dynamics, as Jed Ellerbroek, portfolio manager at Argent Capital Management, points out, "It's less about predicting what Trump will do and more about building a portfolio that can succeed even with unexpected twists."
Investors are also eagerly awaiting the US jobs report due on Friday. Recent data suggests a slowdown in job creation outside the agriculture sector, and economic experts anticipate this trend to continue. The impact of this on the US economy and potential interest rate adjustments remains to be seen.
The stock market was abuzz with other notable developments as well. Spirits maker Brown-Forman saw a sudden drop of over 17% following a bleak outlook, and fashion conglomerate PVH, owner of brands like Tommy Hilfiger and Calvin Klein, saw a similar drop after lowering its full-year guidance.
Check out more on today's market action here.
Topics of Interest:- Wall Street- Tesla Motors- Economy- Trade War- Jobs Report
Interesting Facts:
- The ongoing feud between Donald Trump and Elon Musk has caused Tesla's stock to lose around $150 billion in market value. (source: ntv.de, mau/rts)
- The stock market has been experiencing increased volatility, with the Dow, S&P 500, and Nasdaq all showing mixed results on Wall Street. (source: ntv.de, mau/rts)
- The proposed tax and spending bill is a key area of conflict between Trump and Musk, with the billionaire billionaire criticizing the bill while Trump accused Musk of opposing it due to the removal of tax credits for electric vehicles. (source: ntv.de, mau/rts)
- The reduction in job creation outside the agriculture sector and increased initial claims for US unemployment benefits indicate a cooling labor market. (source: ntv.de, mau/rts)
References:
- ntv.de, mau/rts
In light of the ongoing feud between Donald Trump and Elon Musk, the Community policy and employment policy of Tesla might be affected, considering the impact on Tesla's stock and market sentiment. Meanwhile, the economic implications of the recent job market slowdown outside the agriculture sector could influence the vocational training programs, especially in the business, finance, politics, and general-news sectors.
