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Back to business: What awaits Elon Musk as he departs Doge and Washington?
After a tumultuous and controversial time, Elon Musk has announced his exit from Doge and the Trump administration. His departure comes a day after he criticised US President Donald Trump's 'big, beautiful bill'. Is there trouble brewing between the two? What will Musk do next? read more
Billionaire Elon Musk said Wednesday that his time as formal adviser to US President Donald Trump has now come to an end. File image/AP
'My scheduled time as a special government employee comes to an end,' wrote Elon Musk on X on Wednesday, announcing that his time as formal adviser to President Donald Trump has now come to an end. This marks the end of the billionaire's turbulent run at attempting to slash the federal government.
Notably, Musk's exit comes just a day after he was vocal in his criticism of President Donald Trump's signature spending bill, saying it counters the work he's been doing to reduce wasteful government spending. He told CBS News, 'I was, like, disappointed to see the massive spending bill, frankly, which increases the budget deficit, not just decrease it, and undermines the work that the Doge team is doing.'
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'I think a bill can be big or it can be beautiful, but I don't know if it can be both. My personal opinion,' Musk said in the interview.
Musk's exit from the administration has been confirmed by a White House official, who said: 'The off-boarding process has begun.'
As Trump bids adieu to his 'First Buddy', we look to the future — what comes next for the Tesla chief and X owner.
Becoming Trump's 'First Buddy' and Doge leader
In July 2024, Elon Musk endorsed Trump as presidential candidate seconds after an assassination attempt took place against him at a campaign rally in Butler, Pennsylvania. Since then, the two have been inseparable with the tech billionaire even accompanying Trump on stage — bouncing and jumping in support of Trump.
Then, days after Trump was announced the winner in the US presidential elections, he announced that Musk would be leading the new Department of Government Efficiency , also known as Doge with the mandate to slash federal government spending, waste and regulations.
Tesla CEO and X owner Elon Musk reacts next to Republican presidential nominee Donald Trump during a campaign rally in Butler, Pennsylvania last October. File image/AP
As Doge leader, Musk was often seen with Trump — at Cabinet meetings, at the Conservative Political Action Conference (CPAC) and the US president even gave Musk a shoutout during his joint address to Congress, applauding his work at Doge.
But Musk's time at Doge was controversial — he eliminated some agencies and removed tens of thousands of federal workers from their jobs. However, the initiative fell short of its own high expectations for cost savings.
Trump originally set a deadline of July 4, 2026 to Doge to achieve what Musk had promised —$2 trillion in savings. However, the billionaire then downgraded that to $1 trillion and then further to $150 billion.
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Musk's work at Doge has also drawn several lawsuits and questions of conflict of interest. In fact, his time at Doge caused a severe backlash, which was most visible to his Tesla business. Vehicle sales fell, stock plummeted, and cars and showrooms were vandalised.
But despite it all, Musk continued his slashing efforts until now — May 28.
Demonstrators rally against US President Donald Trump and his adviser Elon Musk during a 'Hands Off!' protest, in Asheville, North Carolina. File image/Reuters
Musk's exit from Doge and future of Doge
On May 28, Musk called time on his Doge stint, writing on X, 'I would like to thank President Donald Trump for the opportunity to reduce wasteful spending,' adding, 'The @DOGE mission will only strengthen over time as it becomes a way of life throughout the government.'
In fact, even in his previous interviews, the X owner has said that Doge would continue even after his exit. 'Doge is a way of life, like Buddhism,' he joked once during a briefing, suggesting that the effort would proceed even after his exit. 'Buddha isn't alive anymore. You wouldn't ask the question: 'Who would lead Buddhism?''
US President Donald Trump with Tesla CEO Elon Musk with his son X Æ A-12, at the White House in Washington. File image/Reuters
And even others seem to concur that Doge and its efforts would continue despite Musk's departure. Peter Diamond, a federally licensed tax, accounting, real estate, and structure and certified bankability expert, was quoted as saying earlier, 'Elon [Musk] is a master at building high-performing teams and putting mechanisms in place that outlive his involvement. 'Just look at PayPal — it's still thriving decades later. If he chooses to step away from Doge, it won't be a spur-of-the-moment decision.'
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Even Andrew Lokenauth, money expert and founder of Be Fluent in Finance, noted that Musk leaving Doge isn't the end of the agency. 'From my analysis of internal operations, Doge's structure was heavily dependent on Musk's personal involvement (about 65 per cent of major decisions required his direct input). The organisation will need major restructuring.'
Musk's pivot back to business
But what happens to Musk himself? What does the exit from the Trump administration mean for the billionaire himself?
The last few months will provide you with an answer — as Musk has already been stepping away and distancing himself from the administration and Doge. In the last few recent interviews, Musk has emphasised his recommitment to leading SpaceX, Tesla, and the artificial intelligence company xAI. The world's richest person claimed that he was back to working around the clock at his companies – to the point of sleeping in conference rooms and factory offices once again.
US President Donald Trump with Tesla CEO Elon Musk ahead of a state dinner hosted by Qatar's Emir Tamim bin Hamad Al Thani, at Lusail Palace in Lusail, Qatar. File image/Reuters
He also attempted to explain away the shortcomings of Doge. For instance, he told the Washington Post on Tuesday, 'The federal bureaucracy situation is much worse than I realised. I thought there were problems, but it sure is an uphill battle trying to improve things in DC, to say the least.'
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Musk also told the Post that Doge had been turned into a 'whipping boy' that was criticised for anything that went wrong under the Trump administration. In another interview, Musk admitted: 'I think I probably did spend a bit too much time on politics.'
There are also other reports coming in that the billionaire had been put on a deadline by Tesla investors, who asked the board to make him work full-time. As per The Washington Post report, a group of activist Tesla shareholders sent a letter to board chair Robyn Denholm, asking for a guarantee that Musk would devote at least 40 hours a week to the company. The Washington Post further added that the letter was signed by SOC Investment Group.
His recent comments also reflect what's to be expected of Musk. Musk claims he will focus on saving humanity through technologies like self-driving cars, interplanetary rockets and humanoid robots.
The Guardian put it best: 'Rather than dwell on a year of missed targets and intense backlash, Musk is back to selling a future where anything is possible.'
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Indian Express
21 minutes ago
- Indian Express
On the campaign trail, Elon Musk juggled drugs and family drama
As Elon Musk became one of Donald J. Trump's closest allies last year, leading raucous rallies and donating about $275 million to help him win the presidency, he was also using drugs far more intensely than previously known, according to people familiar with his activities. Mr. Musk's drug consumption went well beyond occasional use. He told people he was taking so much ketamine, a powerful anesthetic, that it was affecting his bladder, a known effect of chronic use. He took Ecstasy and psychedelic mushrooms. And he traveled with a daily medication box that held about 20 pills, including ones with the markings of the stimulant Adderall, according to a photo of the box and people who have seen it. It is unclear whether Mr. Musk, 53, was taking drugs when he became a fixture at the White House this year and was handed the power to slash the federal bureaucracy. But he has exhibited erratic behavior, insulting cabinet members, gesturing like a Nazi and garbling his answers in a staged interview. At the same time, Mr. Musk's family life has grown increasingly tumultuous as he has negotiated overlapping romantic relationships and private legal battles involving his growing brood of children, according to documents and interviews. On Wednesday evening, Mr. Musk announced that he was ending his stint with the government, after lamenting how much time he had spent on politics instead of his businesses. Mr. Musk and his lawyer did not respond to requests for comment this week about his drug use and personal life. He has previously said he was prescribed ketamine for depression, taking it about every two weeks. And he told his biographer, 'I really don't like doing illegal drugs.' The White House did not respond to questions about whether it had asked Mr. Musk to take drug tests. After this article was published on Friday morning, Harrison Fields, a White House spokesman, issued a statement to The New York Times crediting Mr. Musk with helping cut government waste. He declined to comment on Mr. Musk's drug use. As a large government contractor, Mr. Musk's aerospace firm, SpaceX, must maintain a drug-free work force and administers random drug tests to its employees. But Mr. Musk has received advance warning of the tests, according to people close to the process. SpaceX did not respond to questions about those warnings. Mr. Musk, who joined the president's inner circle after making a vast fortune on cars, satellites and rocket ships, has long been known for grandiose statements and a mercurial personality. Supporters see him as an eccentric genius whose slash-and-burn management style is key to his success. But last year, as he jumped into the political arena, some people who knew him worried about his frequent drug use, mood swings and fixation on having more children. This account of his behavior is based on private messages obtained by The Times as well as interviews with more than a dozen people who have known or worked with him. This year, some of his longtime friends have renounced him, pointing to some of his public conduct. 'Elon has pushed the boundaries of his bad behavior more and more,' said Philip Low, a neuroscientist and onetime friend of Mr. Musk's who criticized him for his Nazi-like gesture at a rally. And some women are challenging Mr. Musk for control of their children. One of his former partners, Claire Boucher, the musician known as Grimes, has been fighting with Mr. Musk over their 5-year-old son, known as X. Mr. Musk is extremely attached to the boy, taking him to the Oval Office and high-profile gatherings that are broadcast around the world. Ms. Boucher has privately complained that the appearances violate a custody settlement in which she and Mr. Musk agreed to try to keep their children out of the public eye, according to people familiar with her concerns and the provision, which has not been previously reported. She has told people that she worries about the boy's safety, and that frequent travel and sleep deprivation are harming his health. Another mother, the right-leaning writer Ashley St. Clair, revealed in February that she had a secret relationship with Mr. Musk and had given birth to his 14th known child. Mr. Musk offered her a large settlement to keep his paternity concealed, but she refused. He sought a gag order in New York to force Ms. St. Clair to stop speaking publicly, she said in an interview. Mr. Musk has described some of his mental health issues in interviews and on social media, saying in one post that he has felt 'great highs, terrible lows and unrelenting stress.' He has denounced traditional therapy and antidepressants. He plays video games for hours on end. He struggles with binge eating, according to people familiar with his habits, and takes weight-loss medication. And he posts day and night on his social media platform, X. Mr. Musk has a history of recreational drug use, The Wall Street Journal reported last year. Some board members at Tesla, his electric vehicle company, have worried about his use of drugs, including Ambien, a sleep medication. In an interview in March 2024, the journalist Don Lemon pressed him on his drug use. Mr. Musk said he took only 'a small amount' of ketamine, about once every two weeks, as a prescribed treatment for negative moods. 'If you've used too much ketamine, you can't really get work done, and I have a lot of work,' he said. He had actually developed a far more serious habit, The Times found. Mr. Musk had been using ketamine often, sometimes daily, and mixing it with other drugs, according to people familiar with his consumption. The line between medical use and recreation was blurry, troubling some people close to him. He also took Ecstasy and psychedelic mushrooms at private gatherings across the United States and in at least one other country, according to those who attended the events. The Food and Drug Administration has formally approved the use of ketamine only as an anesthetic in medical procedures. Doctors with a special license may prescribe it for psychiatric disorders like depression. But the agency has warned about its risks, which came into sharp relief after the death of the actor Matthew Perry. The drug has psychedelic properties and can cause dissociation from reality. Chronic use can lead to addiction and problems with bladder pain and control. By the spring of last year, Mr. Musk was ramping up criticism of President Joseph R. Biden Jr., particularly his policies on illegal immigration and diversity initiatives. Mr. Musk was also facing federal investigations into his businesses. Regulators were looking into crashes of Tesla's self-driving cars and allegations of racism at its factories, among other complaints. 'There are at least half a dozen initiatives of significance to take me down,' he wrote in a text message to someone close to him last May. 'The Biden administration views me as the #2 threat after Trump.' 'I can't be president, but I can help Trump defeat Biden and I will,' he added. He publicly endorsed Mr. Trump in July. Around that time, Mr. Musk told people that his ketamine use was causing bladder issues, according to people familiar with the conversations. On Oct. 5, he appeared with Mr. Trump at a rally for the first time, bouncing up and down around the candidate. That evening, Mr. Musk shared his excitement with a person close to him. 'I'm feeling more optimistic after tonight,' he wrote in a text message. 'Tomorrow we unleash the anomaly in the matrix.' 'This is not something on the chessboard, so they will be quite surprised,' Mr. Musk added about an hour later. ''Lasers' from space.' After Mr. Trump won, Mr. Musk rented a cottage at Mar-a-Lago, the president-elect's Florida resort, to assist with the transition. Mr. Musk attended personnel meetings and sat in on phone calls with foreign leaders. And he crafted plans to overhaul the federal government under the new Department of Government Efficiency. Mr. Musk has also been juggling the messy consequences of his efforts to produce more babies. By 2022, Mr. Musk, who has married and divorced three times, had fathered six children in his first marriage (including one who died in infancy), as well as two with Ms. Boucher. She told people she believed they were in a monogamous relationship and building a family together. But while a surrogate was pregnant with their third child, Ms. Boucher was furious to discover that Mr. Musk had recently fathered twins with Shivon Zilis, an executive at his brain implant company, Neuralink, according to people familiar with the situation. Mr. Musk was by then sounding an alarm that the world's declining birthrates would lead to the end of civilization, publicly encouraging people to have children and donating $10 million to a research initiative on population growth. Privately, he was spending time with Simone and Malcolm Collins, prominent figures in the emerging pronatalist movement, and urging his wealthy friends to have as many children as possible. He believed the world needed more intelligent people, according to people aware of the conversations. Mr. Collins declined to comment on his relationship with Mr. Musk, but said, 'Elon is one of the people taking this cause seriously.' Even as Mr. Musk fathered more children, he favored his son X. By the fall of 2022, during a period when he and Ms. Boucher were broken up, he began traveling with the boy for days at a time, often without providing advance notice, according to people familiar with his actions. Ms. Boucher reconciled with Mr. Musk, only to get another unpleasant surprise. In August 2023, she learned that Ms. Zilis was expecting a third child with Mr. Musk via surrogacy and was pregnant with their fourth. Ms. Boucher and Mr. Musk began a contentious custody battle, during which Mr. Musk kept X for months. They eventually signed the joint custody agreement that specified keeping their children out of the spotlight. By mid-2023, unknown to either Ms. Boucher or Ms. Zilis, Mr. Musk had started a romantic relationship with Ms. St. Clair, the writer, who lives in New York City. Ms. St. Clair said in an interview that at first, Mr. Musk told her he wasn't dating anyone else. But when she was about six months pregnant, he acknowledged that he was romantically involved with Ms. Zilis, who went on to become a more visible fixture in Mr. Musk's life. Ms. St. Clair said that Mr. Musk told her he had fathered children around the world, including one with a Japanese pop star. He said he would be willing to give his sperm to anyone who wanted to have a child. 'He made it seem like it was just his altruism and he generally believed these people should just have children,' Ms. St. Clair said. Ms. St. Clair said that when she was in a delivery room giving birth in September, Mr. Musk told her over disappearing Signal messages that he wanted to keep his paternity and their relationship quiet. On election night, Ms. St. Clair and Mr. Musk both went to Mar-a-Lago to celebrate Mr. Trump's victory. But she had to pretend that she hardly knew him, she said. He offered her $15 million and $100,000 a month until their son turned 21, in exchange for her silence, according to documents reviewed by The Times and first reported by The Journal. But she did not want her son's paternity to be hidden. After she went public in February, ahead of a tabloid story, she sued Mr. Musk to acknowledge paternity and, later, to get emergency child support. Mr. Musk sought a gag order, claiming that any publicity involving the child, or comments by Ms. St. Clair on her experience, would be a security risk for the boy. Some of Mr. Musk's onetime friends have aired concerns about what they considered toxic public behavior. In a January newsletter explaining why their friendship had ended, Sam Harris, a public intellectual, wrote that Mr. Musk had used his social media platform to defame people and promote lies. 'There is something seriously wrong with his moral compass, if not his perception of reality,' Dr. Harris wrote. Later that month, at a Trump inauguration event, Mr. Musk thumped his chest and thrust his hand diagonally upward, resembling a fascist salute. 'My heart goes out to you,' he told the crowd. 'It is thanks to you that the future of civilization is assured.' Mr. Musk dismissed the resulting public outcry, saying he had made a 'positive gesture.' Dr. Low, who is chief executive of NeuroVigil, a neurotechnology company, was outraged by the performance. He wrote Mr. Musk a sharp email, shared with The Times, cursing him 'for giving the Nazi salute.' When Mr. Musk didn't respond to the message, Dr. Low posted his concerns on social media. 'I have no sympathy for this behavior,' he wrote on Facebook, referring to the gesture as well as other behaviors. 'At some point, after having repeatedly confronted it in private, I believe the ethical thing to do is to speak out, forcefully and unapologetically.' The next month, Mr. Musk once again found himself under scrutiny, this time for an appearance at the Conservative Political Action Conference outside Washington. As he walked onto the stage, he was handed a chain saw from one of his political allies, Javier Milei, the president of Argentina. 'This is the chain saw for bureaucracy!' Mr. Musk shouted to the cheering crowd. Some conference organizers told The Times that they did not notice anything out of the ordinary about his behavior behind the scenes. But during an onstage interview, he spoke in disjointed bouts of stuttering and laughing, with sunglasses on. Clips of it went viral as many viewers speculated about possible drug use.
Time of India
24 minutes ago
- Time of India
As the TACO trade gains popularity, here are multiple occasions when Trump threatened and then backtracked
Trump promised tough tariffs during both his campaigns and in his second term, he's made many threats but followed through on fewer. The constant back-and-forth on tariffs has made businesses uncertain, caused job cuts, delayed investments, and shook the stock market, as per reports. Financial analysts have started calling this behavior TACO trade , meaning 'Trump Always Chickens Out.'When asked about this phrase, Trump got defensive and said, 'It's called negotiation.' This information is from an NBC News report. 10 times Trump threatened tariffs but then backed down 1. European Union Tariffs Trump said on a Friday that he would put 50% tariffs on the E.U. starting June 1 because they weren't serious about trade talks. Two days later, he delayed them until July 9 after speaking with E.U. Commission President Ursula von der Leyen said that on April 2, he first announced 20% tariffs, but later the same day, he lowered them to 10% for 90 days. As per NBC News, E.U. tariffs are still at 10% today. 2. Wine Tariff On March 13, Trump posted he'd slap a 200% tariff on E.U. wine after the E.U. threatened 50% on American whiskey. This back-and-forth never happened. A week later, the E.U. stated that the whiskey tariff would be delayed to give time for discussions. No special wine tariffs were added, only the usual 10% one, as per reports. Live Events 3. Canada and Mexico Tariffs Early in office, Trump said he'd put 25% tariffs on imports from Canada and Mexico due to fentanyl concerns. Canada and Mexico hit back with tariffs, and Canadian citizens boycott U.S. goods. Trump paused the tariffs a day before they were to start, saying both countries were improving border actions. According to the reports, on March 4, he said tariffs were back on, but two days later, paused them again until April 2. When he announced wider global tariffs on April 2, he excluded Canada and Mexico. Today, most goods from both countries have no new tariffs, thanks to the North American trade deal. 4. Tariff on Films On May 4, Trump tweeted he wanted a 100% tariff on all foreign movies. Later that day, the White House said nothing was final, and they were 'exploring options.' By afternoon, Trump said he'd talk to movie industry people to keep them 'happy.' No movie tariffs have been implemented, as per reports. 5. Reciprocal Tariffs As per reports, Trump announced tariffs on almost all countries on 'Liberation Day,' saying they'd range from 10% to 49%. He said this would restart American industry and wealth. But on April 9, the day the tariffs were supposed to begin, he delayed them until July 2 to work on separate trade deals. Meanwhile, he kept a blanket 10% tariff. Only the UK got a draft trade deal. A trade court ruled Trump went too far with these tariffs; the ruling is being appealed. 6. China Tariffs Trump repeatedly accused China of cheating the U.S. and shooting tariffs to over 145% in April. This caused U.S. companies to stop China orders and shipments. Then Trump lowered tariffs to 10% for 90 days to start talks after a meeting between Treasury Sec. Scott Bessent and Chinese officials. A separate 20% tariff on fentanyl ingredients from China stayed. A court ruling this week struck down both tariffs, but they remain during appeals, as stated in the reports. 7. Tariff on iPhones After raising China tariffs, Trump made an exception for iPhones, lowering it to 20%. Last Friday, he said he'd put a 25% tariff on iPhones no matter where they're made, starting at the end of June. Trump wants iPhones to be made in the U.S., but Apple is shifting production to India. As mentioned in the report by NBC News, officials walked it back. Treasury Sec. Bessent said it's more about phone chips than full phones. Kevin Hassett said the move was just a small negotiation tactic and they don't want to 'harm Apple.' 8. Colombia Tariff After Colombia blocked two U.S. military flights carrying migrants on his sixth day back in office, Trump threatened to impose 25% tariffs. Colombia replied with their own 25% tariff, but soon allowed the sides dropped the threats within a day. 9. Tariff on Dolls On May 8, Trump said he'd put a 100% tariff on Mattel toys, even if they stopped making them in China, unless they moved production to the U.S. He said if prices went up, kids in the U.S. would just have fewer dolls. Later, Trump said the U.S. should focus on making high-tech items like chips, computers, tanks, ships, not toys or T-shirts. 10. Auto Tariffs Announcement of a 25% tariff on all foreign-made cars was made by Trump on April 3. A month later, he eased some of those to avoid hurting the U.S.-assembled cars that use foreign parts. He later said cars from the U.K., like Land Rover and Aston Martin, would get just a 10% tariff under a draft U.S.-U.K. trade deal still being negotiated, as per NBC News report. FAQs: Q1. What is TACO trade? TACO trade stands for 'Trump Always Chickens Out,' which refers to Trump's habit of backing down on tariff threats . Q2. How do Trump's tariff threats affect? They cause uncertainty, delay investments, and impact jobs and the stock market.
Time of India
25 minutes ago
- Time of India
US stock market today: Dow edges up but S&P 500 and Nasdaq fall as Trump's China tariff threat hits Apple, Nvidia, Regeneron and Gap—even as inflation cools
US Stock Market Today: S&P 500 and Nasdaq Slip as US-China Tensions Flare Up, Even as Inflation Cools- The stock market today showed mixed signals as Wall Street reacted to fresh concerns over US-China trade tensions while digesting key inflation data. The S&P 500 dropped 0.1%, and the Nasdaq Composite slipped around 0.3%. In contrast, the Dow Jones Industrial Average inched up by 0.1%, showing some resilience. Investors faced two competing stories: cooling inflation pressures and growing uncertainty around tariffs between the world's two biggest economies. President Trump's latest remarks about China 'totally violating its agreement' with the US reignited trade concerns, especially as talks appear to have stalled. Meanwhile, inflation data brought a bit of relief, showing price pressures are starting to ease. Market summary – how the major indexes moved S&P 500: Fell 0.1% Nasdaq Composite: Dropped 0.3% Dow Jones Industrial Average: Rose 0.1% Despite trade concerns, the Dow showed resilience, while tech-heavy indexes slipped slightly amid cautious sentiment. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Click Here To Read More - micro segmentation software Expertinspector Click Here Key market drivers 1. Trump's tough talk on China renews trade war fears President Trump accused China of 'totally violating its agreement' with the U.S. Trade talks are reportedly 'a bit stalled,' according to Treasury Secretary Scott Bessent. Tariff tensions are escalating beyond goods to include chip export restrictions and visa issues. A U.S. appeals court paused a lower court ruling that blocked Trump's tariffs—giving the White House until Monday to respond. 2. PCE inflation data shows cooling price pressures Core PCE (month-over-month): +0.1% (unchanged from March, in line with forecasts) Core PCE (year-over-year): +2.5% (down from 2.7% in March) Headline PCE (year-over-year): +2.1% (slightly below the expected 2.2%) Investor sentiment takeaway: Easing inflation could reduce pressure on the Federal Reserve to raise interest rates again. Monthly market performance – is May still ending strong? S&P 500: Up +6% for May Dow Jones: Gained +4% Nasdaq Composite: Surged nearly +10%, led by a tech stock rebound Despite daily volatility, May is closing with solid gains across the board. Live Events Stocks to watch today Regeneron Pharmaceuticals (REGN) Shares plunged over 17% Reason: Disappointing late-stage trial results for its smoker's lung disease drug Despite earlier promising results, the final trial failed to meet expectations, triggering a sharp selloff Other notable movers: Gap (GPS): Fell 17% after a weak Q2 forecast Ulta Beauty (ULTA): Rose 7% after strong Q1 results Dell Technologies (DELL): Up 1.7% on strong revenue beat Consumer sentiment – signs of stabilization University of Michigan's final May reading: Held steady, breaking a 4-month decline streak Positive factor: Temporary China tariff pause boosted economic optimism Inflation expectations Long-run (5-10 years): Dropped to 4.2% (from 4.4% in April) Short-run (1 year): Ticked up to 6.6% (from 6.5%) Why are investors worried about Trump's new China tariff comments? On Friday, President Trump escalated rhetoric against China, accusing Beijing of breaking its deal with the US just weeks after the two nations had agreed on a temporary tariff truce. 'They've totally violated their agreement with us,' Trump told reporters, stoking fears of a renewed US-China trade war. Talks between Washington and Beijing have reportedly hit a roadblock. Scott Bessent told Fox News that discussions are 'a bit stalled,' suggesting only a direct call between Trump and Chinese President Xi Jinping could push things forward. The standoff isn't just about tariffs anymore—it now includes chip restrictions and visa issues, adding layers of complexity to already tense negotiations. Adding to the legal confusion, a US appeals court on Thursday paused a trade court decision that had blocked Trump's global tariffs. The White House now has until Monday to challenge the ruling, which could reshape how tariffs are handled going forward. How is the cooling PCE inflation data affecting market sentiment? While trade headlines dominated attention, the latest PCE inflation report also moved markets. The core Personal Consumption Expenditures (PCE) index, the Federal Reserve's preferred inflation gauge, rose just 0.1% month-over-month in April. That's the same rate as in March and exactly what economists had forecast. On a yearly basis, core PCE inflation came in at 2.5%, down from March's 2.7%, and matched analyst expectations. Meanwhile, headline PCE rose 2.1% year-over-year, slightly below the 2.2% projection. These numbers suggest that inflation is easing, though still above the Fed's 2% target. The market took this as a positive sign, as it could reduce pressure on the Fed to hike interest rates further. Still, uncertainty from trade tensions has kept investors cautious. Is the stock market still on track for a strong may finish? Despite the choppy session, US stocks remain on pace to close May with solid gains. Here's where the major indexes stand heading into the final trading day of the month: S&P 500: +6% in May Dow Jones: +4% for the month Nasdaq Composite: Nearly +10%, boosted by a tech sector rebound Even with the ups and downs triggered by trade headlines and inflation reports, investors are looking at a winning week and month. The strong performance from tech giants has helped power the Nasdaq's rally, reflecting renewed optimism in growth stocks. What happened to Regeneron stock and why did it fall so sharply? In individual stock news, Regeneron Pharmaceuticals (REGN) took a hard hit on Friday. Shares dropped over 17% after the biotech firm announced mixed trial results for its new drug targeting smoker's lung disease. While the drug failed to show strong results in a late-stage trial, it did perform better in an earlier-stage study. Still, investors were disappointed by the setback, leading to a sharp selloff in the stock during early trading. Is consumer sentiment improving or staying flat? According to the University of Michigan's consumer sentiment survey, confidence among US consumers stabilized in May. The final reading for the month showed sentiment holding steady compared to April, breaking a four-month decline streak. One factor that helped? A temporary pause on certain China tariffs, which boosted optimism about the economy's direction. Joanne Hsu, director of consumer surveys at the university, explained: 'Expected business conditions improved after mid-month, likely a consequence of the trade policy announcement.' In terms of inflation expectations: Long-run inflation outlook fell to 4.2% from 4.4% in April Short-run (1-year) expectations rose slightly to 6.6% from 6.5% While this data shows some relief, Hsu noted that consumers remain concerned. 'These positive changes were offset by declines in current personal finances stemming from stagnating incomes throughout May,' she said. What's next for the stock market and economy? As May wraps up, investors will likely stay focused on US-China developments, especially with Monday's court deadline looming for the White House on tariffs. At the same time, attention will turn to whether the Fed sees enough progress on inflation to hold off on further rate hikes. With solid month-end gains across major indexes and cooling inflation numbers, markets have reasons to stay optimistic—as long as geopolitical tensions don't boil over again. The stock market today reflected a tug-of-war between easing inflation and renewed global trade worries. While Friday was mixed, the broader month paints a more hopeful picture for US equities. FAQs: Q1: What caused the stock market to dip today? Rising US-China tensions and renewed tariff fears made the market slip despite cooling inflation data. Q2: How did PCE inflation data affect investors? The PCE index showed inflation is easing, giving hope the Fed might avoid more rate hikes.
