4:12pm: Tesla trouble hits Nasdaq
Tech stocks took it on the chin Thursday, dragging the Nasdaq sharply lower and pulling major U.S. indexes off recent highs. The Nasdaq fell 162 points, or 0.8%, to close at 19,298, marking the steepest decline among the benchmarks.
The broader market followed suit, though losses were more modest. The S&P 500 dropped 32 points, or 0.5%, to finish at 5,939, while the Dow Jones slipped 108 points, or 0.3%, to 42,320. The Russell 2000, a gauge of small-cap stocks, was flat at 2,098.
One of the biggest headlines of the day came from Tesla, whose shares plunged more than 14% to $284.70 as a very public feud between Elon Musk and former President Donald Trump rattled investors.
“Tesla’s stock is under major pressure… as investors fear that this Musk/Trump battle will stop their friendship and change the regulatory environment for Tesla on the autonomous front over the coming years under the Trump Administration,” said Wedbush analyst Dan Ives. “It’s another Twilight Zone moment in this Musk/Trump relationship which now is quickly moving downhill.”
Despite the drama, Ives said the firm remains bullish on Tesla’s long-term prospects—but acknowledged that political tensions have thrown a wrench into the outlook.
As the week winds down, investors will be watching closely to see whether the recent rally still has legs—or whether political headlines and tech-sector turbulence will continue to weigh on sentiment.
3:45pm: Proactive news headlines
Reconnaissance Energy Africa Ltd (TSX-V:RECO) upsized its public offering to C$16.5 million due to strong investor demand, issuing 33 million units at C$0.50 each.
Aftermath Silver Ltd (TSX-V:AAG) made an early US$1.5 million payment toward acquiring full ownership of the Berenguela project in Peru.
Standard Uranium Ltd (TSX-V:STND) engaged Axiom Exploration to prepare a technical report ahead of its first exploration program at the Corvo project in Saskatchewan.
Giyani Metals Corp (TSX-V:EMM) appointed Nigel Robinson as board chair, part of broader leadership changes at its Botswana manganese project.
Midnight Sun Mining Corp (TSX-V:MMA) launched a diamond drilling campaign at its Kazhiba copper target in Zambia’s Solwezi project.
2:46pm: Stocks on the move
Verint Systems (NASDAQ:VRNT) reported stronger-than-expected Q1 results and reaffirmed its full-year guidance, sending shares higher.
Tesla Inc (NASDAQ:TSLA) plunged nearly 8.6% as political backlash and weak global sales raised investor concerns, erasing $82 billion in market value.
Circle Internet Financial is set to debut on the NYSE at nearly double its IPO price, giving the USDC issuer a $6.8 billion valuation.
MongoDB Inc (NASDAQ:MDB) jumped 15.8% after posting a strong Q1 and raising its full-year guidance on better-than-expected revenue growth.
Immunic Inc (NASDAQ:IMUX) completed enrollment for two Phase 3 trials of its multiple sclerosis treatment, vidofludimus calcium.
Aftermath Silver Ltd (TSX-V:AAG) made an early $1.5 million payment as part of its deal to acquire the Berenguela project in Peru.
Standard Uranium Ltd (TSX-V:STND) hired Axiom Exploration to complete a technical report on its Corvo project ahead of its first exploration program.
Giyani Metals Corp (TSX-V:EMM) announced a leadership shake-up, appointing Nigel Robinson as board chair of its Botswana manganese project.
Midnight Sun Mining Corp (TSX-V:MMA) has begun diamond drilling at its Kazhiba copper target in Zambia as part of its Solwezi project.
PVH Corp. (NYSE:PVH) slumped nearly 19% after cutting its annual profit forecast, despite beating Q1 earnings estimates.
2:05pm: Trump-Musk feud heats up
Donald Trump publicly rebuked Elon Musk on Thursday, suggesting the Tesla CEO’s recent criticism of a government spending bill stems from frustration over the administration’s decision to roll back the electric vehicle (EV) mandate.
“Elon knew the inner workings of this bill better than almost anybody,” Trump told reporters in the Oval Office, adding that Musk’s complaints only surfaced after learning the EV mandate would be cut.
While acknowledging a once-strong relationship with Musk, Trump remarked, “I don’t know if we will [have one] anymore. I was surprised.”
The feud marks a sharp turn in their relationship, as Musk previously served in Trump’s cabinet-level Department of Government Efficiency (DOGE) and was a vocal supporter during the 2024 campaign. Musk has slammed the bill as a “disgusting abomination,” urging Americans to pressure lawmakers to reject it.
Musk’s response on X? A terse “Whatever.»
12:41pm: Trade talk optimism
Stocks climbed on Thursday, buoyed by renewed optimism over US-China relations after President Donald Trump confirmed he spoke with Chinese President Xi Jinping.
The Dow rose 0.3%, while the S&P 500 and Nasdaq both added 0.3% and 0.4%, respectively, as investors welcomed signs of potential easing in trade tensions between the world’s two largest economies.
Trump said the call lasted about 90 minutes and was initiated at his request. “The call lasted approximately one and a half hours, and resulted in a very positive conclusion for both Countries,” he wrote on social media. “Our respective teams will be meeting shortly at a location to be determined.” The statement helped offset some of the gloom from earlier in the week, when disappointing economic data raised concerns about the health of the US economy.
Still, signs of economic strain remain. The Labor Department reported that weekly jobless claims hit their highest level in eight months, while continuing claims lingered near a four-year high. The figures added to worries sparked by weak private-sector hiring and a slowdown in the services sector, as the labor market shows further signs of softening under the weight of ongoing trade uncertainty.
12:03pm: Circle set to soar in NYSE debut
Circle Internet Financial, the issuer of USD Coin (USDC), is set to debut on the New York Stock Exchange under the ticker “CRCL” with shares expected to open between $60 and $62—nearly double its IPO price of $31.
The offering, which raised $1.05 billion and was oversubscribed by 25 times, gives the New York-based company a $6.8 billion valuation.
Circle increased the deal size to 34 million shares, pricing above its initial range, in response to strong investor demand.
11:14am: Canada’s trade deficit widens
Canada’s trade deficit widened to an eye-popping $7.1 billion in April — the largest on record — as American tariffs took a serious bite out of exports heading south of the border, according to new data released Thursday by Statistics Canada.
The main driver was a sharp 15.7% drop in exports to the United States, marking the third straight monthly decline.
According to Statistics Canada, exports to the US have now fallen more than 26% since peaking in January.
Overall, Canadian exports fell 10.8% to $60.4 billion in April — the steepest percentage decline in five years and the lowest export value in nearly two. Even in volume terms, the drop was significant, with total exports down 9.1%.
The auto sector bore the brunt, with motor vehicles and parts exports tumbling 17.4% on the month, largely due to a 22.9% plunge in passenger car and light truck shipments. Lower crude oil prices and a stronger Canadian dollar also contributed to the decline.
10:35am: US safe haven fades
The European Central Bank’s decision to cut interest rates is expected to do more than stimulate growth in the eurozone—it may also accelerate a significant shift by global investors away from U.S. assets, according to Nigel Green, CEO of deVere Group.
Green points to a confluence of factors driving the move, including political instability, rising U.S. debt, and unpredictable trade policies under President Donald Trump. “What we’re witnessing is a powerful repricing of risk. Investors are actively diversifying away from the US, and the ECB’s move today will only likely intensify that,” said Green.
He noted that while the S&P 500 appears strong on the surface, underlying fiscal challenges—such as a projected federal debt load reaching 122% of GDP by 2034—are prompting strategic re-evaluations among institutional investors.
Green emphasized that the ECB’s rate cut signals stability and policy support, making European markets increasingly attractive. The weaker euro is boosting competitiveness, while lower rates are lifting corporate margins and valuations. “We’re entering a cycle where diversification away from US assets is not just tactical, it’s structural,” Green said.
“Europe is benefiting from a convergence of policy, valuation appeal, and investor pragmatism. That mix is drawing serious capital.”
9:50am: Cautious tone
Markets opened Thursday with a cautious tone as Wall Street balanced fresh economic data, mounting geopolitical noise, and anticipation over central bank policy moves.
The Dow slipped 63 points, or 0.2%, to 42,365, weighed down by weakness in consumer and industrial names. The S&P 500 dipped 4 points, or 0.1%, to 5,967, pulling back modestly from record highs. Meanwhile, the tech-heavy Nasdaq edged up 12 points, or 0.1%, to 19,472, as investors continued to favor large-cap technology stocks. The Russell 2000 lagged, dropping 5 points, or 0.2%, to 2,098, reflecting broader softness in small caps.
One early drag on sentiment came from PVH Corp, which slumped after the parent of Calvin Klein and Tommy Hilfiger slashed its full-year profit outlook, citing the growing impact of tariffs.
On the global stage, the European Central Bank cut interest rates by 25 basis points as expected, marking a shift in the global monetary policy landscape even as investors wait for the Federal Reserve’s next move. Traders are increasingly betting on two Fed rate cuts before year-end, with the first possibly landing in September—especially after yesterday’s weak ADP print and a surprise contraction in ISM services.
Adding to the busy day, investors are eyeing two closely watched IPOs: stablecoin issuer Circle Internet Group is set to begin trading on the NYSE after pricing its shares at $31, while fintech darling Chime Financial will debut on the Nasdaq, with shares priced between $24 and $26. Later in the session, earnings from Lululemon and Broadcom will offer further insights into consumer spending and tech demand.
All this, while Trump-era trade tensions re-emerge—most recently with a travel ban, tariff chatter, and rare earth fears rekindling questions about global supply chains. But as one strategist quipped, “The world may be wobbling, but markets march on.”
9:25am: Jobless claims edge higher
Initial jobless claims rose to 247,000 last week, above economists’ expectations of 236,000, signaling a gradual softening in the labor market. Continuing claims came in slightly below forecasts at 1.904 million, compared to the expected 1.91 million.
“Jobless claims continue to rise, but they are rising at a slow pace, so it’s a trend worth watching, but too soon to sound the alarm,” said Chris Zaccarelli, Chief Investment Officer at Northlight Asset Management.
Zaccarelli warned of a potential shift in market sentiment as economic indicators point to weaker productivity and sluggish growth, even as inflation remains elevated. “We are approaching an inflection point, where the concerns of stagflation can seep into the greater market narrative,” he said.
Investors now turn their focus to Friday’s nonfarm payrolls report for clearer insight into the labor market, which Zaccarelli noted is “what we believe the Fed is watching most closely at this point.”
8:27am: Futures steady
Wall Street traders aren’t in a rush to move on this Thursday morning, with equity futures little changed from last night.
Tomorrow’s monthly jobs data (the NFP, ‘non-farm payroll’ report) is giving the market pause for thought.
Indeed, against a backdrop set in ever-shifting geopolitical sands the caution is quite understandable.
In premarket, the Dow Jones, S&P 500, and Nasdaq 100 futures all edged slightly higher following Wednesday’s mixed session, which saw markets pause after recent gains.
Dow futures are up 32 points (0.09%) to 42,532, whilst the S&P futures showed a 0.07% gain and the Nasdaq contract was 0.02% in positive territory.
Investor sentiment remains cautious ahead of the May NFPs, after weak ADP and services data earlier this week which raised concerns about the economic impact of US tariffs.
Other employment stats out today – appetizers to tomorrow’s entrée – include jobless claims, productivity, and unit labour costs, which will together set the scene and prime expectations.
Attention on the data will be high, as they’ll likely be influencing factors for the Federal Reserve as it continues to be hounded by President Trump, who repeatedly calls upon Fed chair Jerome Powell to soften interest rates and deliver a sugar rush to the US economy as it deals with the tariff impacts.
At the same time, in Washington, debate over a sweeping fiscal bill has reignited concerns about the US deficit, with the Congressional Budget Office estimating a $2.4 trillion cost.
American bond yields have come under pressure as fiscal uncertainty and geopolitical tensions weigh on markets.
The corporate focus is on Broadcom and Lululemon, which report results after the bell.
Tesla shares slipped premarket after CEO Elon Musk urged lawmakers to block the fiscal bill.
PVH, parent of Calvin Klein, fell sharply after cutting profit guidance, while Robinhood rose on speculation of an S&P 500 inclusion.
