By Kristoff De Turck - reviewed by Aldwin Keppens
Last update: Jun 6, 2025
Wall Street ended Thursday’s session in the red, as investor caution ahead of Friday’s crucial jobs reportwas compounded by sharp stock swings and an unexpected public feud between two high-profile figures: Donald Trump and Elon Musk.
The Nasdaq fell 0.8%, the S&P 500 slipped 0.5%, and the Dow Jones shed 0.3%.
The most striking development of the day was a social media clash between former president Donald Trump and Tesla CEO Elon Musk.
The spat escalated when Trump posted on Truth Social, threatening to cut off Tesla's (TSLA | -14.3%) government subsidies and contracts, a move he claimed could save "billions" for the federal budget. This came in response to Musk’s vocal opposition to Trump’s proposed "Big Beautiful Bill," which the CEO criticized heavily on X.
Musk didn’t hold back either, urging his followers to lobby Congress against the bill and suggesting that without his support, Trump might have lost the 2024 election.
The back-and-forth sparked a steep sell-off in Tesla shares, which plunged more than 14% on the day, contributing significantly to the broader market’s decline.
Markets were already treading cautiously ahead of Friday’s US employment report, which could shape expectations for potential interest rate cuts by the Federal Reserve.
Economists forecast job growth of 125,000 in May, down from 177,000 in April, with wage growth expected to cool slightly to 3.7%. Unemployment is projected to remain at 4.2%.
Weaker-than-expected job data could bolster the case for monetary easing, especially following softer economic indicators earlier in the week and a dovish signal from the European Central Bank.
Alcohol giant Brown-Forman (BF.A | -17.27%), known for its Jack Daniel’s whiskey brand, took a severe hit after reporting weak quarterly earnings and offering a gloomy outlook. The company missed estimates on both revenue and earnings per share for the quarter ending in April.
Adding to investor concerns, Brown-Forman forecast a low single-digit organic sales decline for the current fiscal year, far below analysts’ expectations for growth. The stock tumbled almost 18% in response, closing at $27.25.
In contrast, discount retailer Dollar Tree (DLTR | +9,08%) enjoyed a strong rebound, climbing over 9% after JPMorgan analyst Matthew Boss upgraded the stock from “hold” to “buy” and raised the price target from $72 to $111.
The move followed a steep 8% decline the previous day, when the company warned of tariff-related headwinds despite beating earnings estimates.
Boss cited expectations of a return to double-digit earnings per share growth in the coming years as a reason for renewed optimism.
After the bell, Broadcom (AVGO | -4.2% after-hours) reported stellar second-quarter results, driven by soaring demand for AI-related semiconductor solutions. AI revenue rose 46% year-over-year to over $4.4 billion, with expectations of a jump to $5.1 billion in the third quarter.
Total revenue surged 20% to more than $15 billion, beating Wall Street forecasts. Net income more than doubled to nearly $5 billion. Despite the strong results, the stock wavered in after-hours trading.
Five Below (FIVE | +5.59%) rose after reporting better-than-expected revenue and adjusted earnings.
Kimberly-Clark (KMB | -2.26%) slipped amid reports it’s close to selling its Kleenex division outside North America for $3.5 billion.
MongoDB (MDB | +12.84%) rallied on upbeat earnings and a strong forecast.
Procter & Gamble (PG | -1.9%) declined following news it plans to cut 7,000 jobs.
Verint Systems (VRNT | +2.43%) gained after beating revenue expectations.
Nebius Group (NBIS | + 17.54%) soared by nearly 18%. Arete Securities analyst Andrew Beale began coverage of Nebius with a buy rating and an $84 price target, suggesting strong potential for gains.
With geopolitical drama, corporate surprises, and a critical jobs report on deck, market volatility is likely to persist into the weekend.
Friday's employment data will be key in shaping investor sentiment and monetary policy expectations heading into the second half of the year.
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Wall Street ended Thursday’s session in the red, as investor caution ahead of Friday’s crucial jobs report.