US Stock Market Close: Three Major Indices Close Lower Collectively, Tesla Plunges Over 14%, Market Cap Falls Below $1 Trillion

On Thursday, US Eastern Time, the US stock market moved downwards after a higher opening, with all three major indices closing lower. Tesla's share price plummeted, dragging down the Nasdaq and S&P 500 indices.

(Minute-by-minute charts of the three major indices, source: TradingView)

By the close, the Dow Jones Industrial Average fell 0.25% to 42,319.74 points; the S&P 500 dropped 0.53% to 5,939.30 points; and the Nasdaq Composite declined 0.83% to 19,298.45 points.

Tesla was one of the worst-performing stocks on Thursday, plunging over 14% and seeing its market capitalization fall below $1 trillion.

US President Donald Trump publicly expressed on Thursday that he was "very disappointed" with Tesla CEO Elon Musk. Musk later hit back on social media platform X, saying, "Without me, Trump wouldn't have won the election."

The dispute between the two continued to escalate, with Trump later calling Musk "crazy" and hinting at the possibility of canceling government contracts for Tesla and its affiliated companies.

Economic data released on Thursday was mixed. The US trade deficit in April narrowed to $61.6 billion, a larger decline than economists had expected. This followed a record-high trade deficit in March, as companies stockpiled goods ahead of tariff implementation.

However, data from the US Department of Labor showed that initial jobless claims rose last week to their highest level since October last year.

Despite investors' calm reaction to recent tariff news, BlackRock CEO Larry Fink said at a conference in New York that he expects trade tariffs to impact the economy later this year.

"If tariffs are truly implemented in the next five months, I think we will see very serious inflation," Fink warned.

Performance of Popular Stocks

Most large-cap tech stocks fell, with Apple down 1.08%, Microsoft up 0.82%, Nvidia down 1.36%, Google up 0.10%, Amazon up 0.33%, Meta down 0.48%, and Tesla down 14.26%.

Popular Chinese ADRs showed mixed performance. The Nasdaq Golden Dragon China Index rose 0.54%, with Alibaba up 0.43%, JD.com down 0.72%, Pinduoduo down 0.32%, NIO down 3.47%, XPeng Motors down 1.91%, Li Auto down 0.64%, Bilibili up 1.15%, Baidu up 1.13%, NetEase up 1.11%, and Tencent Music up 0.45%.

Company News

[Musk Says SpaceX Will Immediately Retire Dragon Spacecraft in Response to Trump's Contract Cancellation Threat]

Elon Musk, founder of SpaceX, stated that in light of US President Donald Trump's statement about canceling government contracts, SpaceX will immediately begin retiring its Dragon spacecraft. It is understood that current US manned space activities heavily rely on SpaceX's Crew Dragon spacecraft.

[Apple: App Store Generated $1.3 Trillion in Developer Revenue and Sales in 2024]

On June 5, Apple announced that research showed the global App Store generated a total of $1.3 trillion in developer revenue and sales in 2024. Driven by increased demand for online food delivery and pickup, as well as grocery orders, sales of physical goods and services exceeded $1 trillion. Revenue from in-app display advertising by developers reached $150 billion.

[Trump Media & Technology Group Files for Bitcoin ETF, Aims to List on NYSE]

On Thursday local time, publicly listed firm Trump Media & Technology Group (DJT) announced in a statement that it had submitted an S-1 registration document to the US Securities and Exchange Commission (SEC) for the issuance of the "Truth Social Bitcoin ETF," and plans to list on the New York Stock Exchange (NYSE) after completing the approval process.

The statement indicated that the ETF will directly hold Bitcoin and issue shares to investors, aiming to reflect the price performance of Bitcoin. Yorkville America Digital will serve as the fund sponsor, responsible for regulatory compliance and operational management.

Although there is no specific approval deadline for the S-1 filing, the NYSE has already submitted the 19b-4 filing for this ETF on Tuesday, and the US SEC is required to make a final approval decision within 240 days. Therefore, conservatively estimated, the Trump family's Bitcoin ETF will be listed before early next year.

[Microsoft CEO: Relationship with OpenAI is Adjusting, but Collaboration Remains Strong]

Satya Nadella, CEO of tech giant Microsoft, recently stated that the important partnership between Microsoft and OpenAI is indeed evolving, but remains strong.

In an interview with the media, Nadella said, "It's clear that any company transitioning from a research lab to one of the most successful products of our time must undergo some changes. They, us, and our partnership will all evolve."