Stock market today: S&P 500 hits 6,000 as Tesla rebounds amid Trump-Musk feud cooldown

Stocks closed out the week with gains after a May jobs report beat, and signs that the public feud between President Trump and Tesla (TSLA) CEO Elon Musk has taken a pause.

The Dow Jones Industrial Average (^DJI) rallied more than 400 points, or about 1.1%, while the S&P 500 (^GSPC) added about 1% to close at the 6,000 mark. The tech-heavy Nasdaq Composite (^IXIC) also gained 1.2%.

Meanwhile, Microsoft (MSFT) hit a fresh record on Friday, surpassing AI chip giant Nvidia (NVDA) as the largest company in the world.

Tesla shares rebounded from a wipeout following a war of words between Musk and Trump during the prior session.

On the heels of a better-than-expected jobs report released on Friday morning, Trump again urged the Federal Reserve to cut rates in order to lower borrowing costs.

“Go for a full point, Rocket Fuel!” Trump wrote on social media.

Investor optimism over trade talks with China also helped stocks move higher for the week. On Friday, Trump said high-level talks with Beijing would take place in London on Monday.

A high-profile feud between President Donald Trump and billionaire Elon Musk reached a fever pitch on Thursday, triggering a $150 billion-plus wipeout in Tesla (TSLA) shares.

The selloff came after Musk slammed Trump’s GOP-backed spending bill, prompting fiery responses from the president and raising concerns over the political risk now tied to one of the world’s most valuable companies.

“This is a disaster of epic proportion for Tesla and SpaceX,” Ross Gerber, CEO of Gerber Kawasaki Wealth & Investment Management CEO, told Yahoo Finance in reaction to the developments. “And whether Elon wants to accept it or not, he did help Trump get elected. It is his fault that Trump is president of the United States.”

Although shares rebounded on Friday, rising around 6% in mid-afternoon trading as Musk and Trump moved to cool tensions, Gerber warned, “I think we’re just getting started for the declines because a lot of the stock price’s value isn’t based off the underlying business. It’s based off the perception that Elon being a part of Tesla is somehow wonderful.”

The close relationship between Trump and Musk began to take a more active shape during last year’s campaign trail. Musk endorsed the then-Republican candidate soon after the assassination attempt on Trump in Butler, Pennsylvania. Afterward, Musk frequently appeared at rallies, voicing his support for the Republican Party at large and pledging millions to America PAC, a Trump-aligned super PAC.

Once Trump was elected, the president appointed Musk as head of the newly formed Department of Government Efficiency, otherwise known as DOGE. The purpose of the agency was to eliminate government waste. Musk officially exited the role late last month, revealing the agency had cut billions of dollars in costs.

But just a few days later, Musk’s tone shifted as he criticized Trump’s controversial tax legislation, which is estimated to add trillions to the national debt over the next decade. It would also eliminate EV tax credits, a crucial government incentive for Tesla and a potential “death blow” to the company’s sales, according to Gerber. Having cleared the House, the bill now heads to the Senate, with Trump vowing to sign it into law by July 4.

Read more here and check out the timeline below documenting the week that was:

The US labor market is cooling. The president keeps clamoring for the Federal Reserve to cut interest rates. But Wall Street still doesn’t think it’s happening anytime soon, with markets not pricing in a more than 50% chance of a Fed rate cut until the central bank’s September meeting, per the CME FedWatch Tool.

One reason why appeared in two different data releases over the past week. Wage growth remains resilient.

The May jobs report showed average hourly earnings in May rose 0.4% over the last month and 3.9% over the prior year, higher than 0.2% monthly wage growth seen in April.

Meanwhile data from ADP showed wages for workers in the private sector who changed jobs grew 7% while wages for those who stayed in the same job grew 4.5%. Both were unchanged from the month prior. As our Chart of the Week shows, in the past six months wage growth for job stayers has fallen just 0.2 percentage points while pay gains for job changers has actually increased by 0.2%.

“The labor market isn’t collapsing,” Richardson said. “Wages are robust, but they’re not triggering inflation. Hiring is slow, but it’s not leading to outside layoffs. So in that sense, there’s nothing in the labor market that points in any direction [for the Fed] strongly.

In a note titled “May-day? More like Pay-day!“ Bank of America US economist Shruti Mishra remarked that solid wage income growth is “supportive of consumption but will also likely keep the Fed in their inflation fighting stance.”

Bitcoin (BTC-USD) surged back above $105,000 per token on Friday amid an overall market rally.

The token rebounded on the heels of a better-than-expected jobs report and signs of a cooldown in the war of words between President Trump and Tesla (TSLA) CEO Elon Musk.

Bitcoin rebounded after falling to around $101,000 on Thursday as a public feud unraveled.

Meanwhile, Circle (CRCL) stock also surged more than 35% a day after the stablecoin issuer made its public debut. The stock’s surge comes amid crypto’s favorable treatment by the Trump administration and corporations.

Lululemon (LULU)

Lululemon stock fell more than 20% in midday trading on Friday after the activewear company warned profits would take a hit amid what it called a “dynamic macro-environment.” Lululemon cut its full-year earnings per share outlook to a range of $14.58-$14.78 from $14.95-$15.15.

Tesla (TSLA)

Shares of the EV maker rebounded as much as 6% midday Friday as CEO Elon Musk and President Trump stopped posting insults at each other on social media, a sign of a deescalation of their public feud, which wiped out $150 billion in value from the EV maker during the prior session.

DocuSign (DOCU)

DocuSign shares sank 18% after the electronic signing software firm lowered its full-year billings guidance and announced a $1 billion share repurchase program.

Broadcom (AVGO) shares slumped more than 3%, underperforming the broader chip market on Friday after the semiconductor giant’s forecast failed to wow Wall Street.

The company beat second quarter earnings estimates, but disappointed on outlook, despite a 46% revenue increase from last year.

Meanwhile, the rest of the chip space gained on Friday as stocks rallied on the heels of a May jobs report which beat expectations, and signs of a cooldown in the feud between President Trump and Tesla CEO Elon Musk.

Omada Health (OMDA) stock popped 36% to trade around $25 per share on Friday afternoon after making its debut on the public markets.

The stock began trading on the Nasdaq around 11:45 a.m. ET at $23 per share. It was priced ahead of its IPO at $19 per share.

Yahoo Finance’s Anjalee Khemlani reports:

Read more here.

Anjalee spoke with Omada CEO Sean Duffy about what the IPO means for the company and its plans to become profitable. You can watch that interview here.

Morgan Stanley analysts are still bullish on Tesla stock following the very public clash between the EV maker’s CEO and President Trump.

The firm is Overweight the stock, with a $410 price target, citing key areas of physical AI including “data, robotics, energy storage, compute, manufacturing and space/comms/networking/infrastructure”, offering margin opportunities that greatly exceed those of the traditional EV business.

Jonas and his team wrote “we believe the challenges facing Tesla’s current business are widely reported and well known, while the opportunities in the future business are potentially greatly underestimated.”

On Friday the stock jumped as much as % after the public feud between Musk and Trump prompted a washout in the prior session, erasing more than $150 billion in value from the EV maker.

Microsoft (MSFT) opened at a fresh record on Friday, surpassing AI chip giant Nvidia (NVDA) as the largest company in the world.

The software giant gained nearly 1% in morning trading, hitting a new all-time high above $470. Its market cap stood at more than $3.5 trillion, more than Nvidia’s $3.46 trillion valuation.

Microsoft is up 12% year to date versus Nvidia’s roughly 6% gain during the same period.

The company has fully recovered from its early April lows following President Trump’s unveiling of a reciprocal tariff policy and its subsequent rollback.

Circle (CRCL) stock continues to climb.

Shares of the stablecoin issuer rose 22% in early trade Friday, building on the meteoric 168% gains in its first day of trading that saw the stock halted multiple times for volatility. Its market debut comes as crypto has received favorable treatment by the Trump administration and corporations.

Circle is currently trading at over $100 per share. It was priced at $31 ahead of its IPO.

Yahoo Finance’s Laura Bratton reports:

Read more here.

President Trump again urged the Federal Reserve to cut rates on Friday morning.

In a social media post, the president criticized the central bank for being “too late,” saying policymakers should go for a full point cut.

Trump wrote: “‘Too late’ at the Fed is a disaster! Europe has had 10 rate cuts, we have had none. Despite him, our Country is doing great. Go for a full point, Rocket Fuel!”

The president has repeatedly criticized the Federal Reserve and its chairman, Jerome Powell, for not cutting rates this year the way European policymakers have.

The S&P 500 (^GSPC) briefly touched the 6,000 mark on Friday shortly after the market open, its highest level since February.

Stocks have roared back roughly 20%, or more than 1,000 points, from their April lows after President Trump’s “Liberation Day” tariff policy reveal.

The president has since rolled back the broad-based reciprocal tariff plan he unveiled on April 2, announcing a 90-day pause on many countries, a framework deal with the UK, and a temporary trade truce with China.

The broad-based index came close to touching the 6,000 level on Thursday after President Trump said he had a “very good phone call” with his Chinese counterpart, Xi Jinping, about trade.

However, the S&P 500 retreated by the afternoon following a very public feud between Trump and Tesla (TSLA) CEO Elon Musk.

By Friday morning, the war of words showed signs of cooling. However, a White House official told Reuters there was no planned phone call between Trump and Musk.

US stocks opened higher with the S&P 500 eyeing the 6,000 level after the release of a moderate beat on the monthly jobs report and signs of a potential cooldown between President Trump and Elon Musk.

The Dow Jones Industrial Average (^DJI) rallied more than 300 points, or 0.9%, while the S&P 500 (^GSPC) added about 1%. The tech-heavy Nasdaq Composite (^IXIC) also gained 1%.

Tesla (TSLA) shares rose 6% amid signs of a cooldown between CEO Musk and President Trump after a very public clash on social media.

The May jobs report came in better than expected, with unemployment holding steady at 4.2%.

Yahoo Finance’s Josh Schafer reports:

Read more here.

Circle (CRCL) stock continued to gain in premarket trading Friday after an explosive debut on the public markets Thursday.

Shares of the stablecoin issuer rose 14% to trade around $94 as of 8:00 a.m. ET Friday. On Thursday, the stock soared 168% from its IPO price of $31, closing the session with a market capitalization north of $16 billion.

Circle is the second-largest stablecoin issuer in the market and issues the stablecoin USDC (USDC-USD), which is backed by the dollar. There is $60 billion worth of USDC in circulation, while the largest stablecoin issuer, Tether (USDT-USD), has closer to $150 billion in circulation.

Its market debut comes as multiple tailwinds have boosted the crypto market in recent months. Bitcoin (BTC-USD) breached the $100,000 level in early May and is currently trading around $103,800 per token.

Read more about Circle’s IPO here.

Lululemon said its profits will take a hit as uncertainty around tariffs deters shoppers, prompting the yogawear retailer to lower its 2025 forecast.

Shares sank over 20% in pre-market trading in the wake of Lululemon’s earnings report late Thursday.

Yahoo Finance’s Brooke DiPalma reports:

Read more here.

Here are some top stocks trending on Yahoo Finance in premarket trading:

Broadcom (AVGO) stock fell 3% in premarket trading on Friday, after the tech company, which makes semiconductors, failed to impress Wall Street with it’s third-quarter revenue forecast. Despite investors being bullish on chip stocks amid the artificial intelligence boom, the results failed to excite.

“High expectations drove a bit of downside,” Bernstein analyst Stacy Rasgon said in a note.

Tesla (TSLA) stock rebounded on Friday and rose 4% in premarket trading after closing 14% down the day before. The war of words between CEO Elon Musk and President Trump cooled amid a report that White House officials were organising a call between the two leaders.

lululemon athletica inc. (LULU) shares plunged 20% on Friday before the bell after the sports company warned profits would be hit amid what it called a “dynamic macro-environment.”

DocuSign (DOCU) stock fell 18% in premarket trading on Friday after reporting a rise in its profit and revenue, however, the company now expects to bring in less money from company contracts.

Tesla (TSLA) shares rose before the bell, setting up for a comeback from tanking 14% on Thursday as the public spat between its CEO Elon Musk and President Trump became increasingly heated.

Investors are taking some comfort from White House aides scheduling a call between Musk and Trump to broker peace, as the Tesla boss signals he’s open to moves to cool the situation.

Reuters reports:

Read more here.