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US stocks edged lower on Thursday as Wall Street weighed whether a conversation between President Trump and his Chinese counterpart could thaw a strained US-China trade truce.
The Dow Jones Industrial Average (^DJI) fell 0.3% after the blue-chip index snapped a four-day win streak on Wednesday. The S&P 500 (^GSPC) slipped 0.1%, and the tech-heavy Nasdaq Composite (^IXIC) declined 0.2%.
The gauges trimmed modest gains after Chinese state media said Trump and President Xi Jinping spoke on Thursday at the US leader’s request. Trump has been publicly pushing for the talk as tensions between the countries have risen in the aftermath of a trade truce reached in mid-May in Geneva.
SNP – Free Realtime Quote USD
As of 10:23:12 AM EDT. Market Open.
^GSPC ^IXIC ^DJI
In recent days, stocks have rallied as investors embraced the idea that Trump typically pedals back tough moves on tariffs — known on Wall Street as the “TACO” trade, for “Trump Always Chickens Out.”
Downbeat economic data took the steam out of the rally on Wednesday. Readings on private-sector hiring growth and the services sector stoked concerns that the US economy is starting to feel negative effects from Trump’s trade overhaul.
Read more: The latest on Trump’s tariffs
Department of Labor data out Thursday showed weekly claims for unemployment benefits hit their highest level in eight months during the final full week of May. Meanwhile, the tally of continuing claims continued to hover near the highest level in nearly four years, as the US labor market continues to show signs of slowing.
Investors now await Friday’s release of the closely watched May jobs report, which economists say will offer the “first real look at how the labor market is faring under a rapidly changing trade environment.”
On the corporate front, Lululemon (LULU) and Broadcom (AVGO) are due to report quarterly results on Thursday as earnings season winds to a close.
LIVE 11 updates
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Tesla declines 5% as Musk takes aim at ‘big, beautiful bill’, EV tax credits also at risk
Tesla (TSLA) stock fell more than 5% on Thursday, extending declines from the previous session following an increasingly public policy blowout between President Trump and Tesla CEO Elon Musk
“Call your Senator, Call your Congressman, Bankrupting America is NOT ok! KILL the BILL,” Musk posted on X on Wednesday.
Musk added, “If the massive deficit spending continues, there will only be money for interest payments and nothing else!”
EV tax credits could also be at risk after a report from Bloomberg suggests that Musk’s new tack to destroy the bill comes after his lobbying to save the tax credits was unsuccessful.
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Amazon shares rise 2% after Trump-Xi call
Amazon (AMZN) stock gained as much as 2% on Thursday morning after Chinese state media said President Trump and Chinese leader Xi Jinping spoke on Thursday, at the request of the US president.
Amazon, which sells many products sourced in China, rose following the announcement.
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Stocks edge higher after Trump and Xi call
US stocks opened higher on Thursday after Chinese media reported a conversation between President Trump and Chinese leader Xi. This raised investor hopes that the two countries could be coming closer to a lasting trade agreement.
The Dow Jones Industrial Average (^DJI) was little changed, while the S&P 500 (^GSPC) rose slightly. The tech-heavy Nasdaq Composite (^IXIC) also gained 0.2%.
Chinese state media said Trump and Chinese leader Xi Jinping spoke on Thursday at the US president’s request.
DJI – Free Realtime Quote USD
As of 10:23:12 AM EDT. Market Open.
^DJI ^IXIC ^GSPC
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Tesla stock falls again as Musk blasts Trump’s tax bill
Tesla (TSLA) stock slumped more than 3% in premarket trading as CEO Elon Musk continued his public feud with policymakers over President Trump’s tax and spending bill.
“Call your Senator, Call your Congressman, Bankrupting America is NOT ok! KILL the BILL,” Musk posted on X on Wednesday.
Some have speculated that these outbursts may in part have to do with Musk’s concern that Congress will do away with the federal EV tax credit, which helped the company by making its cars more affordable to consumers. Though Musk has also downplayed Tesla’s reliance on the tax credit in the past.
Yahoo Finance’s Pras Subramanian reports:
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Jobless claims hit highest level since October 2024
Weekly claims for unemployment benefits hit their highest level in more than seven months during the final full week of May while the number of Americans filing for unemployment insurance on an ongoing basis continued to hover near its highest level in nearly four years as the US labor market continues to show signs of slowing.
Data from the Department of Labor released Thursday morning showed 247,000 initial jobless claims were filed in the week ending May 231, up from 239,000 the week prior and above economists’ expectations for 235,000.
Meanwhile, 1.904 million continuing claims were filed, down slightly from 1.907 million the week prior and near the highest level seen since November 2021. Economists see an increase in continuing claims as a sign that those out of work are taking longer to find new jobs.
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Silver prices jump to highest level in 13 years
Silver surged to its highest level since February 2012, rising about 4% to above $36 an ounce on Thursday morning. Gold also rose 0.5% as demand for the metals remained strong.
Bloomberg reports:
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Bonds are ‘boring’ — but they’re critical to understand right now
As millions of people flooded into the stock market over the past few years, understanding of the things that move markets seems to have made noticeable progress.
Not, however, for bonds, notes Yahoo Finance’s Hamza Shaban:
Read more here in today’s Morning Brief.
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Good morning. Here’s what’s happening today.
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Tide maker Procter & Gamble is slashing 7,000 jobs
Procter & Gamble (PG) said Thursday it will cut 7,000 jobs — or around 6% of its global workforce — as it grapples with rising tariff-related costs and shifts in demand from penny-watching shoppers.
The consumer products giant’s two-year restructuring plan also calls for the dropping of certain product categories and brands, Reuters reported.
Shares in P&G were little changed in premarket trading as investors assessed the news from the world’s largest consumer goods company.
Yahoo Finance’s Brian Sozzi reports:
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Trending tickers: Tesla, PVH Corp, Robinhood and Broadcom
Here are some top stocks trending on Yahoo Finance in premarket trading:
Tesla (TSLA) stock fell over 1% in premarket trading on Thursday following CEO Elon Musk’s latest attack on President Trump’s tax bill. Musk said: “Call your Senator, Call your Congressman, Bankrupting America is NOT ok! KILL the BILL,” Musk posted on X.
PVH Corp (PVH), the owner of designer brand Calvin Klein, stock dropped 8% before the bell after cutting its profit outlook for the year, citing weakness in the US, China and tariffs.
Zac Coughlin, Chief Financial Officer, said, “We are reaffirming our revenue guidance for the year but are decreasing our outlook for profitability and earnings per share to reflect that backdrop and the current performance of our business.”
Robinhood (HOOD) stock rose 1% following Bank of America (BAC) saying the online brokerage is a “prime candidate” to enter the S&P 500 Index in the rebalancing set to be announced Friday.
Broadcom (AVGO) stock rose 1.4% in premarket trading ahead of second-quarter earnings report, due for release later today.
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US optimism in domestic businesses tanks throughout first half of 2025
Optimism in the current state of the US economy and of US businesses has seen a rapid decline throughout 2025. After a sharp peak following President Trump’s reelection, hope for a stable economy has been in free fall, dropping 40% in less than six months.
Bloomberg reports:
Read more here.
