Wall St gains as tech boost offsets economic worries
US stocks have edged higher as strength in technology shares offset declines driven by weak economic data that deepened concerns about the effects of trade policies from US President Donald Trump's administration.
The US services sector contracted for the first time in nearly a year in May while businesses paid higher input prices, a reminder that the economy was still at risk of experiencing a period of very slow growth and high inflation.
The ADP National Employment Report showed US private employers added the fewest number of workers in more than two years in May.
Investors are awaiting Friday's non-farm payrolls data for more signs on how trade uncertainty is affecting the US labour market.
"I think you get very short term volatility from the ADP number but I don't think that it means that much until we see the payrolls number," said Larry Tentarelli, chief technical strategist at Blue Chip Daily Trend Report.
The United States doubled tariffs on imported steel and aluminium to 50 per cent on Wednesday, the same day by which Trump wanted trading partners to make their best offers to avoid other punishing import levies from taking effect in early July.
Investor focus is squarely on tariff negotiations between the US and its trading partners, with Trump and Chinese leader Xi Jinping expected to speak sometime this week as tensions simmer between governments of the world's two biggest economies.
May was the best month for the S&P 500 index and the tech-heavy Nasdaq since November 2023, thanks to a softening of Trump's harsh trade stance and upbeat earnings reports.
The S&P 500 remains less than 3.0 per cent away from its record highs touched in February.
Barclays joined a slew of other brokerages in raising its year-end price target for the S&P 500, pointing to easing trade uncertainty and expectations of normalised earnings growth in 2026.
In early trading on Wednesdsay, the Dow Jones Industrial Average rose 88.09 points, or 0.20 per cent, to 42,605.07, the S&P 500 gained 17.36 points, or 0.29 per cent, to 5,987.73 and the Nasdaq Composite gained 58.41 points, or 0.31 per cent, to 19,459.09.
Eight of the 11 major S&P 500 sub-sectors rose, led by communication services with a 1.2 per cent rise, while information technology stocks gained 0.4 per cent.
Shares of Hewlett Packard Enterprise rose 1.1 per cent as demand for the company's artificial-intelligence servers and hybrid cloud segment helped it beat estimates for second-quarter revenue and profit.
GlobalFoundries rose 2.2 per cent after the chip manufacturer announced plans to increase its investments to $US16 billion ($A25 billion).
Tesla dropped 3.8 per cent as the electric-vehicle maker's sales slipped for the fifth straight month in big European markets.
Wells Fargo shares rose 1.2 per cent after the US Federal Reserve removed a $US1.95 trillion asset cap imposed in 2018 following years of missteps.
Shares of cybersecurity firm CrowdStrike slumped 4.7 per cent after it forecast quarterly revenue below estimates.
Dollar Tree fell 10.2 per cent after the discount store operator forecast second-quarter adjusted profit would be as much as 50 per cent lower than a year ago due to tariff-driven volatility.
Advancing issues outnumbered decliners by a 2.02-to-1 ratio on the NYSE and by a 1.41-to-1 ratio on the Nasdaq.
The S&P 500 posted 19 new 52-week highs and no new lows while the Nasdaq Composite recorded 63 new highs and 23 new lows.
US stocks have edged higher as strength in technology shares offset declines driven by weak economic data that deepened concerns about the effects of trade policies from US President Donald Trump's administration.
The US services sector contracted for the first time in nearly a year in May while businesses paid higher input prices, a reminder that the economy was still at risk of experiencing a period of very slow growth and high inflation.
The ADP National Employment Report showed US private employers added the fewest number of workers in more than two years in May.
Investors are awaiting Friday's non-farm payrolls data for more signs on how trade uncertainty is affecting the US labour market.
"I think you get very short term volatility from the ADP number but I don't think that it means that much until we see the payrolls number," said Larry Tentarelli, chief technical strategist at Blue Chip Daily Trend Report.
The United States doubled tariffs on imported steel and aluminium to 50 per cent on Wednesday, the same day by which Trump wanted trading partners to make their best offers to avoid other punishing import levies from taking effect in early July.
Investor focus is squarely on tariff negotiations between the US and its trading partners, with Trump and Chinese leader Xi Jinping expected to speak sometime this week as tensions simmer between governments of the world's two biggest economies.
May was the best month for the S&P 500 index and the tech-heavy Nasdaq since November 2023, thanks to a softening of Trump's harsh trade stance and upbeat earnings reports.
The S&P 500 remains less than 3.0 per cent away from its record highs touched in February.
Barclays joined a slew of other brokerages in raising its year-end price target for the S&P 500, pointing to easing trade uncertainty and expectations of normalised earnings growth in 2026.
In early trading on Wednesdsay, the Dow Jones Industrial Average rose 88.09 points, or 0.20 per cent, to 42,605.07, the S&P 500 gained 17.36 points, or 0.29 per cent, to 5,987.73 and the Nasdaq Composite gained 58.41 points, or 0.31 per cent, to 19,459.09.
Eight of the 11 major S&P 500 sub-sectors rose, led by communication services with a 1.2 per cent rise, while information technology stocks gained 0.4 per cent.
Shares of Hewlett Packard Enterprise rose 1.1 per cent as demand for the company's artificial-intelligence servers and hybrid cloud segment helped it beat estimates for second-quarter revenue and profit.
GlobalFoundries rose 2.2 per cent after the chip manufacturer announced plans to increase its investments to $US16 billion ($A25 billion).
Tesla dropped 3.8 per cent as the electric-vehicle maker's sales slipped for the fifth straight month in big European markets.
Wells Fargo shares rose 1.2 per cent after the US Federal Reserve removed a $US1.95 trillion asset cap imposed in 2018 following years of missteps.
Shares of cybersecurity firm CrowdStrike slumped 4.7 per cent after it forecast quarterly revenue below estimates.
Dollar Tree fell 10.2 per cent after the discount store operator forecast second-quarter adjusted profit would be as much as 50 per cent lower than a year ago due to tariff-driven volatility.
Advancing issues outnumbered decliners by a 2.02-to-1 ratio on the NYSE and by a 1.41-to-1 ratio on the Nasdaq.
The S&P 500 posted 19 new 52-week highs and no new lows while the Nasdaq Composite recorded 63 new highs and 23 new lows.
US stocks have edged higher as strength in technology shares offset declines driven by weak economic data that deepened concerns about the effects of trade policies from US President Donald Trump's administration.
The US services sector contracted for the first time in nearly a year in May while businesses paid higher input prices, a reminder that the economy was still at risk of experiencing a period of very slow growth and high inflation.
The ADP National Employment Report showed US private employers added the fewest number of workers in more than two years in May.
Investors are awaiting Friday's non-farm payrolls data for more signs on how trade uncertainty is affecting the US labour market.
"I think you get very short term volatility from the ADP number but I don't think that it means that much until we see the payrolls number," said Larry Tentarelli, chief technical strategist at Blue Chip Daily Trend Report.
The United States doubled tariffs on imported steel and aluminium to 50 per cent on Wednesday, the same day by which Trump wanted trading partners to make their best offers to avoid other punishing import levies from taking effect in early July.
Investor focus is squarely on tariff negotiations between the US and its trading partners, with Trump and Chinese leader Xi Jinping expected to speak sometime this week as tensions simmer between governments of the world's two biggest economies.
May was the best month for the S&P 500 index and the tech-heavy Nasdaq since November 2023, thanks to a softening of Trump's harsh trade stance and upbeat earnings reports.
The S&P 500 remains less than 3.0 per cent away from its record highs touched in February.
Barclays joined a slew of other brokerages in raising its year-end price target for the S&P 500, pointing to easing trade uncertainty and expectations of normalised earnings growth in 2026.
In early trading on Wednesdsay, the Dow Jones Industrial Average rose 88.09 points, or 0.20 per cent, to 42,605.07, the S&P 500 gained 17.36 points, or 0.29 per cent, to 5,987.73 and the Nasdaq Composite gained 58.41 points, or 0.31 per cent, to 19,459.09.
Eight of the 11 major S&P 500 sub-sectors rose, led by communication services with a 1.2 per cent rise, while information technology stocks gained 0.4 per cent.
Shares of Hewlett Packard Enterprise rose 1.1 per cent as demand for the company's artificial-intelligence servers and hybrid cloud segment helped it beat estimates for second-quarter revenue and profit.
GlobalFoundries rose 2.2 per cent after the chip manufacturer announced plans to increase its investments to $US16 billion ($A25 billion).
Tesla dropped 3.8 per cent as the electric-vehicle maker's sales slipped for the fifth straight month in big European markets.
Wells Fargo shares rose 1.2 per cent after the US Federal Reserve removed a $US1.95 trillion asset cap imposed in 2018 following years of missteps.
Shares of cybersecurity firm CrowdStrike slumped 4.7 per cent after it forecast quarterly revenue below estimates.
Dollar Tree fell 10.2 per cent after the discount store operator forecast second-quarter adjusted profit would be as much as 50 per cent lower than a year ago due to tariff-driven volatility.
Advancing issues outnumbered decliners by a 2.02-to-1 ratio on the NYSE and by a 1.41-to-1 ratio on the Nasdaq.
The S&P 500 posted 19 new 52-week highs and no new lows while the Nasdaq Composite recorded 63 new highs and 23 new lows.
US stocks have edged higher as strength in technology shares offset declines driven by weak economic data that deepened concerns about the effects of trade policies from US President Donald Trump's administration.
The US services sector contracted for the first time in nearly a year in May while businesses paid higher input prices, a reminder that the economy was still at risk of experiencing a period of very slow growth and high inflation.
The ADP National Employment Report showed US private employers added the fewest number of workers in more than two years in May.
Investors are awaiting Friday's non-farm payrolls data for more signs on how trade uncertainty is affecting the US labour market.
"I think you get very short term volatility from the ADP number but I don't think that it means that much until we see the payrolls number," said Larry Tentarelli, chief technical strategist at Blue Chip Daily Trend Report.
The United States doubled tariffs on imported steel and aluminium to 50 per cent on Wednesday, the same day by which Trump wanted trading partners to make their best offers to avoid other punishing import levies from taking effect in early July.
Investor focus is squarely on tariff negotiations between the US and its trading partners, with Trump and Chinese leader Xi Jinping expected to speak sometime this week as tensions simmer between governments of the world's two biggest economies.
May was the best month for the S&P 500 index and the tech-heavy Nasdaq since November 2023, thanks to a softening of Trump's harsh trade stance and upbeat earnings reports.
The S&P 500 remains less than 3.0 per cent away from its record highs touched in February.
Barclays joined a slew of other brokerages in raising its year-end price target for the S&P 500, pointing to easing trade uncertainty and expectations of normalised earnings growth in 2026.
In early trading on Wednesdsay, the Dow Jones Industrial Average rose 88.09 points, or 0.20 per cent, to 42,605.07, the S&P 500 gained 17.36 points, or 0.29 per cent, to 5,987.73 and the Nasdaq Composite gained 58.41 points, or 0.31 per cent, to 19,459.09.
Eight of the 11 major S&P 500 sub-sectors rose, led by communication services with a 1.2 per cent rise, while information technology stocks gained 0.4 per cent.
Shares of Hewlett Packard Enterprise rose 1.1 per cent as demand for the company's artificial-intelligence servers and hybrid cloud segment helped it beat estimates for second-quarter revenue and profit.
GlobalFoundries rose 2.2 per cent after the chip manufacturer announced plans to increase its investments to $US16 billion ($A25 billion).
Tesla dropped 3.8 per cent as the electric-vehicle maker's sales slipped for the fifth straight month in big European markets.
Wells Fargo shares rose 1.2 per cent after the US Federal Reserve removed a $US1.95 trillion asset cap imposed in 2018 following years of missteps.
Shares of cybersecurity firm CrowdStrike slumped 4.7 per cent after it forecast quarterly revenue below estimates.
Dollar Tree fell 10.2 per cent after the discount store operator forecast second-quarter adjusted profit would be as much as 50 per cent lower than a year ago due to tariff-driven volatility.
Advancing issues outnumbered decliners by a 2.02-to-1 ratio on the NYSE and by a 1.41-to-1 ratio on the Nasdaq.
The S&P 500 posted 19 new 52-week highs and no new lows while the Nasdaq Composite recorded 63 new highs and 23 new lows.
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ABC News
an hour ago
- ABC News
Will Trump or Musk be able to hold back while flirting with mutually assured destruction?
Donald Trump sees himself as a world-class negotiator and deal maker — he will now need to bring all those skills to reach a ceasefire deal — not in Ukraine nor Gaza — but with Elon Musk. Musk now presents a real crisis for the Trump presidency. He's wealthy, powerful, unpredictable and he believes he's been wronged. And he knows a lot about the president and his family. This feud — carried out in real time on X — has captivated Americans. As one person posted on Musk's own online social media platform on Friday morning, when there was a lull in the abuse between the two: "What time do Trump and Musk wake up?" These are dangerous times for Donald Trump. Like a married couple, for the past year Musk and Trump have been with each other when the guests have left the dinner party. As each world leader has left the White House, as each influential member of Congress has shaken hands and left, these two have been left to do their own private debrief in the Oval Office. The relationship was so close that on one occasion when Trump was having a phone call with Ukrainian President Volodymyr Zelenskyy, Trump reportedly said to Zelenskyy words to the effect, "There's someone here I want you to say hello to," and handed the phone to Musk. A puzzled Ukrainian president was suddenly speaking to the world's richest man. That's how close Trump and Musk were during their political marriage. But now the divorce has come through and they're fighting about their legacies. Musk is trying to convince the world that he wanted to slash the US's crippling budget but that Trump sold out America by pushing a bill — the bill Trump likes to call "One Big Beautiful Bill" — through the House of Representatives. Trump is trying to convince the world that Musk is an erratic and unpredictable character, and that he's bitter because his bill cut subsidies to electric vehicles — which hit Musk's Tesla business — and that Trump asked him to leave. In recent weeks, Trump has had to have some fascinating calls — including with Russian President Vladimir Putin to try to bring an end to the war in Ukraine, and with Chinese President Xi Jinping to bring an end to Trump's tariff war on the United States's trading partners. As wily as those two men are, he may need greater skills of persuasion — or threat — with Elon Musk. Within a few days of their split's fallout, Musk was threatening to support the impeachment of Trump, to support Vice-President JD Vance taking over and to withdraw funding for Trump's candidates in the mid-term election. Trump, for his part, was threatening to end government contracts enjoyed by Musk's Space X company. It's often said that information is power. If that's the case, these two have unparalleled information about each other. They have accessed each other's lives for more than a year. They know each other's families. They know each other's family problems. They know each other's business interests. They know each other's vulnerabilities — personal and business. On top of the power of information that comes with access, they both have raw power. Through his total control of agencies, Trump can access any tax or regulatory information on Musk and his businesses. Trump has shown he will use legal and regulatory powers to pursue his personal and political enemies. This makes Musk extremely vulnerable. Trump understands fully the power of his words from the Oval Office — this week within five minutes of him saying that he thought his friendship with Musk was over, Wall Street started selling Tesla shares. Then, when Trump began suggesting that he would end Musk's various government contracts, Wall Street panicked. Within an hour, Tesla shares had dived 14 per cent. Donald Trump had wiped billions off Musk's wealth. But Musk does not have the personality type to take this sort of thing calmly. He, too, has power — although his is not the ability to hit Trump's many financial interests (that he knows of) but rather to damage him politically. Like Musk, Trump is also vulnerable. Musk has the raw power that comes from being the world's richest man. He has his mass distribution publishing platform, X. By spending so much time with Trump and his family in both the White House — and for a time seemingly to live in Trump's Florida mansion, Mar-a-Lago — Musk would have knowledge of the Trump family's business dealings. It appears as if Trump decided some weeks ago that Musk was not long for the White House — that it was a matter of how to extricate Musk from the Oval Office without too much pain. Musk's behaviour became erratic. Those wild images of him waving a chainsaw and shouting that this was what he was using to cut government spending went down badly with many of those who had voted for Trump, particularly veterans who were suddenly losing entitlements. Then Musk made what appeared to be a Nazi salute. This, coupled with his strong support for Germany's far-right Alternative for Germany (AFD) party, made many Americans concerned about Musk's real views. When Musk, in a reference to the Holocaust, told AFD supporters that there was "too much focus on past guilt, and we need to move beyond that" and that the party's anti-immigration policies were "the best hope for Germany" it only heightened those concerns. Then reports began appearing about clashes between Musk and senior members of Trump's cabinet. Whether they were authorised by Trump or the White House or were from disenchanted members of Trump's cabinet is not clear, but what is clear is that a steady stream of leaks began appearing against Musk. One of the more damaging was that Musk had a blazing row in one cabinet meeting with Marco Rubio, the secretary of state. The report said that Trump allowed the fight to go for some time, before intervening to stop it — by siding with Rubio. Then came reports of a clash witnessed by many between Musk and Scott Bessent, the well-liked secretary of the Treasury. Musk had shouted at Bessent in a corridor that Bessent was not cutting enough staff from his department quickly enough, at which point Bessent reportedly shouted back: "F*** off!" The leaks all appeared well sourced, and the White House did not vigorously deny them. Someone, it seems, was out to get Musk, apparently preparing the ground for his political execution. Then came perhaps the most devastating leak of all — details of Musk's alleged erratic behaviour, and drug use, since joining Trump's campaign to return to the White House. The New York Times reported: "As Elon Musk became one of Donald J. Trump's closest allies last year, leading raucous rallies and donating about $[US]275 million [$423 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 anaesthetic, that it was affecting his bladder, a known effect of chronic use. He took Ecstasy and psychedelic mushrooms. And he travelled 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 behaviour, 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." This was now going well beyond the narrative that Musk was difficult to work with. This was creating the impression that Musk was erratic and unpredictable. Musk strongly denied The New York Times story: "To be clear, I am NOT taking drugs! The New York Times was lying their a... off," Musk insisted. "I tried prescription ketamine a few years ago and said so on X, so this not even news. It helps for getting out of dark mental holes, but haven't taken it since then." Whatever the truth of it all, Musk's reputation was taking a belting — and however wealthy and powerful is, Musk would have known that his reputation was bleeding. How many big investment houses want to put money behind somebody who, when they google his name, "ketamine" comes up? So the break-up was inevitable. Musk says it was his decision, that his role as head of DOGE — the Department of Government Efficiency — had come to a natural end. Trump has a different version — he says he asked Musk to leave. Whoever is telling the truth, the couple gathered in the Oval Office to announce their separation. Both tried to put their best face on it — not an easy task for Musk, looking dishevelled and with a black eye which he claimed he received while playing with his son. As part of this apparently amicable divorce, Trump opened a box and handed Musk a golden "key to the White House". But, unmistakably, the chemistry which the two had always shared was gone. It had all the authenticity of a married couple who can barely look at each other announcing their divorce and saying: "We remain good friends, we just grew apart, and we will always put the interests of the children first." That didn't last long. Within days, Musk could not help himself. He began posting on X his concerns about Trump's signature budget bill, which Musk says will push the United States towards bankruptcy by its massive increase in the country's debt levels. This was a direct challenge to Trump, who has pressured Republicans to officially name the bill "One Big Beautiful Bill". But Trump did something he rarely does: He sat back and did not take the bait. All Trump's instincts are to lash out at anybody that he thinks might be criticising him, but with Musk he stayed quiet. By the hour, Musk's tweets gathered impact. Finally, he went so far as to urge Americans to contact their members of Congress to lobby them to "Kill the Bill". Some Republicans backed Musk, which would have concerned Trump. The Trump side began fighting back, initially through Mike Johnson, the speaker of the House of Representatives, who Trump nominated to ensure the bill went through the House — which it has — and now to try to shepherd it through the Senate. Although the Republicans control the Senate, as well as the House, some of the more conservative senators agree with Musk that this bill — with its huge tax cuts for wealthy Americans — will push the US towards bankruptcy. The Republicans hold the Senate by only a slim margin. It will only take three Republicans to vote against the bill to defeat it. This would be a huge blow to the centrepiece of Trump's economic policy. Johnson dropped something that would have outraged Musk. He suggested Musk was opposing the bill not because he was committed to the US cutting its deficit but because it cut subsidies to electric vehicles — the mainstay of the Tesla business — and was therefore hitting Elon Musk's business interests. This went against everything that Trump and the White House had been saying for a year. Trump had often told his rallies that Musk was in fact losing money by concentrating on the political world and was doing it selflessly as he wanted to "make America great again". So now, through Johnson, Musk was being re-cast from the great American MAGA patriot to the selfish businessman only concerned about his own wealth. Seemingly outraged by what he saw as an attempt to undermine him personally rather than address the issue of the deficit, Musk doubled down, calling the bill "a disgusting abomination". All this became too much for Trump. He finally entered the fight, repeating not just the claim that Musk was upset about losing the electric vehicle subsidies but that Trump had asked Musk to leave his position. Trump was saying that he had essentially terminated Musk's role. For someone with a sense of self-worth as large as Musk's, the suggestion that Trump had essentially told him "you're fired!" — for which Trump was famous on his reality TV show The Apprentice — would have outraged him. Not many people can fire the world's richest man. Donald Trump was now saying that he had. And so Musk went ballistic. What he did next crossed a line beyond which he could never salvage any relationship with Trump or this White House. He seems to have realised that himself, beginning his post on X with both a sense of threat and glee: As far as the White House was concerned, Elon Musk was now a political terrorist — he had gone rogue and was out of control, seemingly prepared to push for the destruction of Donald Trump. Signing off with "Have a nice day, DJT!" (Donald J Trump), Musk had linked Trump to an investigation into a criminal sex trafficking operation which involved many high-profile people and centred on Jeffrey Epstein, the now-dead US financier. Trump had famously been photographed with Epstein, but so had many people who had been part of the New York finance and celebrity worlds of the 1980s and 90s. Where this now goes is anybody's guess. Neither of these two men operates according to convention of generally accepted rules. US media have reported that various mediators were trying to set up a ceasefire phone call, but Trump has failed in his phone call attempts to get ceasefires in Ukraine and Gaza and there's no suggestion that he will be any more successful in ending this "war" with Elon Musk. Musk has been on the inside of the Trump presidency — and the Trump family — for almost a year. He's had access to moments with the family when the cameras are not around and nobody is recording what is being said. If Donald Trump has personal, sexual or financial skeletons, Musk may well know what they are and where they are. Trump, for his part, has had insights into Elon Musk that few others have. If the reports of Musk being erratic and drug-fuelled during Trump's campaign are true, Trump would know about them. Like Musk, Trump has had insights into Musk's business and private life that few others would have had. The reason this battle is epic is that both men have raw power. Both men have the ability to destroy or wound each other. Both men are natural pugilists. Both men believe backing down is for wimps, part of the modern curse of "woke" culture. This is the ultimate clash of political power with financial power. In this modern age, which will win? Who will win? And which side does Vice-President JD Vance take? Does he show loyalty to his commander-in-chief, who hand-picked him to be his deputy? Or does he show loyalty to Elon Musk, one of the tech oligarchs with whom Vance has spent so much time cultivating? After all, these tech billionaires, who famously sat in the front row of Trump's inauguration in front of key figures who would sit in Trump's cabinet, can bankroll a "Vance 2028" campaign. Can Vance somehow keep both men onside when those two men are now clearly trying to wound the other? As to where this goes from here, Trump has become the most powerful man in the world — for the second time — by never taking a step back. Musk has become the most wealthy man in the world by overriding any obstacles put in his way. The key question now is this: Does the natural instinct of each man in this Shakespearean drama to attack their opponents and exact revenge when they feel they have been criticised outweigh the reality that each man is flirting with mutually assured destruction?
The Age
3 hours ago
- The Age
Build-up to a blow-up: Inside the Trump-Musk meltdown
This account of the crumbling ties between the president and Musk is based on interviews with 13 people with direct knowledge of the events, all of whom asked for anonymity to describe private discussions. Loading While the relationship had been losing steam over the past several months as Musk clashed with Trump officials, people close to both men said the disagreement over Isaacman accelerated the breakup. Musk had been planning to exit the White House relatively quietly – before Isaacman's ouster left him feeling humiliated. Now the two men, who seemed inseparable at one point, are on opposite sides. Musk suggested Trump should be impeached. Trump has threatened to cancel government contracts with Musk's companies. And in recent days, Trump has been telling people close to him that he believes Musk is acting 'crazy' and must be doing drugs. For Musk, there were few positions across the thousands in the federal government that mattered more to him than the head of NASA, because of its critical importance to SpaceX, his rocket business. So it was of great personal benefit to Musk when Trump chose Isaacman – who has flown to space twice with SpaceX – to oversee the agency. Isaacman's donations to Democrats had not always been a problem. While Trump privately told advisers that he was surprised to learn of them, he and his team had been briefed about them during the presidential transition, before Isaacman's nomination, according to two people with knowledge of the events. But by last Friday, when Trump went through the file containing details of the donations, he clearly had changed his mind. Musk barely mounted a defence of his friend. He was anxious about doing so with other people around, including Sergio Gor, director of the presidential personnel office, who had clashed with Musk over other staffing matters. Musk believed that he would be able to talk to the president at some point after the gathering, privately. But Musk never got a chance to make his case. In the hours after the Oval Office farewell, Trump decided he would withdraw Isaacman from consideration. Musk was stunned by how fast it all happened. Musk's allies have argued privately that Isaacman's recent donations to Democrats were not ideological and made at the encouragement of Senator Mark Kelly, a former astronaut. A spokesperson for the Democratic senator for Arizona declined to comment. Loading As Musk dealt with the fallout from the tanked nomination, he spent part of the weekend outside Missoula, Montana, as a guest at 'Symposium' – an event for tech executives, investors and startup founders thrown by Founders Fund, the venture capital firm founded by Peter Thiel. He mingled with guests at Paws Up, a high-end resort with glamping tents and luxury cabins set on 15,000 hectares of a historic cattle ranch. There, he had a wide-ranging conversation with Thiel, who could sense no coming feud with the president, according to a person familiar with the talks. Sam Altman, CEO of OpenAI who has been openly feuding with Musk, also attended, though the two men did not speak. For Musk, the goings-on in Washington were still top of mind. After spending a day in Montana, he turned his attention in earnest to assailing the top domestic priority of Trump: the Republican bill making its way through Congress that would slash taxes and steer more money to the military and immigration enforcement. Privately and publicly, Musk stewed over the bill, believing that its spending would erase the supposed savings of his Department of Government Efficiency (DOGE) and add to the federal deficit. Some Republican lawmakers had tried to assuage Musk's fears. On Monday, Republican House Speaker Mike Johnson walked the billionaire through the bill and said that Congress would try to codify the work done by DOGE. After the call, Johnson told associates that he felt Musk was uninformed about the legislation and the congressional process, but that he had been able reason with the world's richest man, according to a person familiar with the conversation. On Monday evening, Musk still had concerns. He hinted at them on his social platform X, reposting a chart apparently showing the yearly increase in the national debt. 'Scary,' Musk wrote as a caption. Trump did not respond to Musk's criticisms of the bill and maintained a light public schedule. The Trump-Musk alliance fully ruptured Thursday, six days after the two men put on the collegial display in the Oval Office. Musk, who had largely focused his attacks on Republicans in Congress, had started directing more ire at the president. So when Trump was asked about Musk's comments during a meeting with Friedrich Merz, the new German chancellor, the president finally let loose. He said he was 'disappointed' in Musk, downplayed the billionaire's financial support for his presidential campaign and posited that Musk developed 'Trump derangement syndrome' after leaving the White House. Musk fired back in real time. Using X, he unleashed a torrent of attacks. He claimed there were references to the president in government documents about Jeffrey Epstein, the sex offender, and indicated his support for the president's impeachment. He also said Trump's tariffs would cause a recession by the end of the year. Loading Later, Trump, using his own social media platform, threatened to cut billions of dollars in federal contracts with Musk's companies. By Thursday evening, Musk signalled he would be open to de-escalating the fight, while the president seemed to have little interest in an immediate reconciliation. White House officials said Trump had no plans to call Musk. 'President Trump is the unequivocal leader of the Republican Party, and the vast majority of the country approves of his job performance as president,' White House press secretary Karoline Leavitt said. 'Inflation is down, consumer confidence and wages are up, the jobs report beat expectations for the third month in a row, the border is secure and America is hotter than ever before.' A spokesperson for Musk did not respond to a request for comment. Loading Musk, his allies and even some White House officials now pin the blame on Gor, believing he sabotaged Isaacman as Musk was on his way out. But some close Trump allies say Gor was being unfairly criticised for a decision that ultimately rests with the president. Gor and Musk had clashed several times early in Trump's second term, including at two Cabinet meetings, when Musk questioned how swiftly Gor was moving to fill the top ranks of agencies. Musk's and Gor's teams often disagreed over personnel and the amount of power that should be given to aides at DOGE. But Gor's title – director of the White House Presidential Personnel Office – does not convey the scope of his influence in the president's orbit. Gor founded a pro-Trump super political action committee during the 2024 presidential election, and co-founded a publishing house with Donald Trump jr that has published books by the president and his allies. The president's aides and allies quickly jumped to Gor's defence on Friday. 'Sergio Gor is a vital member of the team, and he has helped President Trump put together an administration that is second to none,' Steven Cheung, the White House communications director, said in a statement. As for Musk? White House officials said on Friday that Trump was considering selling the bright red Tesla he got in March as a show of support for Musk.
Sydney Morning Herald
3 hours ago
- Sydney Morning Herald
Build-up to a blow-up: Inside the Trump-Musk meltdown
This account of the crumbling ties between the president and Musk is based on interviews with 13 people with direct knowledge of the events, all of whom asked for anonymity to describe private discussions. Loading While the relationship had been losing steam over the past several months as Musk clashed with Trump officials, people close to both men said the disagreement over Isaacman accelerated the breakup. Musk had been planning to exit the White House relatively quietly – before Isaacman's ouster left him feeling humiliated. Now the two men, who seemed inseparable at one point, are on opposite sides. Musk suggested Trump should be impeached. Trump has threatened to cancel government contracts with Musk's companies. And in recent days, Trump has been telling people close to him that he believes Musk is acting 'crazy' and must be doing drugs. For Musk, there were few positions across the thousands in the federal government that mattered more to him than the head of NASA, because of its critical importance to SpaceX, his rocket business. So it was of great personal benefit to Musk when Trump chose Isaacman – who has flown to space twice with SpaceX – to oversee the agency. Isaacman's donations to Democrats had not always been a problem. While Trump privately told advisers that he was surprised to learn of them, he and his team had been briefed about them during the presidential transition, before Isaacman's nomination, according to two people with knowledge of the events. But by last Friday, when Trump went through the file containing details of the donations, he clearly had changed his mind. Musk barely mounted a defence of his friend. He was anxious about doing so with other people around, including Sergio Gor, director of the presidential personnel office, who had clashed with Musk over other staffing matters. Musk believed that he would be able to talk to the president at some point after the gathering, privately. But Musk never got a chance to make his case. In the hours after the Oval Office farewell, Trump decided he would withdraw Isaacman from consideration. Musk was stunned by how fast it all happened. Musk's allies have argued privately that Isaacman's recent donations to Democrats were not ideological and made at the encouragement of Senator Mark Kelly, a former astronaut. A spokesperson for the Democratic senator for Arizona declined to comment. Loading As Musk dealt with the fallout from the tanked nomination, he spent part of the weekend outside Missoula, Montana, as a guest at 'Symposium' – an event for tech executives, investors and startup founders thrown by Founders Fund, the venture capital firm founded by Peter Thiel. He mingled with guests at Paws Up, a high-end resort with glamping tents and luxury cabins set on 15,000 hectares of a historic cattle ranch. There, he had a wide-ranging conversation with Thiel, who could sense no coming feud with the president, according to a person familiar with the talks. Sam Altman, CEO of OpenAI who has been openly feuding with Musk, also attended, though the two men did not speak. For Musk, the goings-on in Washington were still top of mind. After spending a day in Montana, he turned his attention in earnest to assailing the top domestic priority of Trump: the Republican bill making its way through Congress that would slash taxes and steer more money to the military and immigration enforcement. Privately and publicly, Musk stewed over the bill, believing that its spending would erase the supposed savings of his Department of Government Efficiency (DOGE) and add to the federal deficit. Some Republican lawmakers had tried to assuage Musk's fears. On Monday, Republican House Speaker Mike Johnson walked the billionaire through the bill and said that Congress would try to codify the work done by DOGE. After the call, Johnson told associates that he felt Musk was uninformed about the legislation and the congressional process, but that he had been able reason with the world's richest man, according to a person familiar with the conversation. On Monday evening, Musk still had concerns. He hinted at them on his social platform X, reposting a chart apparently showing the yearly increase in the national debt. 'Scary,' Musk wrote as a caption. Trump did not respond to Musk's criticisms of the bill and maintained a light public schedule. The Trump-Musk alliance fully ruptured Thursday, six days after the two men put on the collegial display in the Oval Office. Musk, who had largely focused his attacks on Republicans in Congress, had started directing more ire at the president. So when Trump was asked about Musk's comments during a meeting with Friedrich Merz, the new German chancellor, the president finally let loose. He said he was 'disappointed' in Musk, downplayed the billionaire's financial support for his presidential campaign and posited that Musk developed 'Trump derangement syndrome' after leaving the White House. Musk fired back in real time. Using X, he unleashed a torrent of attacks. He claimed there were references to the president in government documents about Jeffrey Epstein, the sex offender, and indicated his support for the president's impeachment. He also said Trump's tariffs would cause a recession by the end of the year. Loading Later, Trump, using his own social media platform, threatened to cut billions of dollars in federal contracts with Musk's companies. By Thursday evening, Musk signalled he would be open to de-escalating the fight, while the president seemed to have little interest in an immediate reconciliation. White House officials said Trump had no plans to call Musk. 'President Trump is the unequivocal leader of the Republican Party, and the vast majority of the country approves of his job performance as president,' White House press secretary Karoline Leavitt said. 'Inflation is down, consumer confidence and wages are up, the jobs report beat expectations for the third month in a row, the border is secure and America is hotter than ever before.' A spokesperson for Musk did not respond to a request for comment. Loading Musk, his allies and even some White House officials now pin the blame on Gor, believing he sabotaged Isaacman as Musk was on his way out. But some close Trump allies say Gor was being unfairly criticised for a decision that ultimately rests with the president. Gor and Musk had clashed several times early in Trump's second term, including at two Cabinet meetings, when Musk questioned how swiftly Gor was moving to fill the top ranks of agencies. Musk's and Gor's teams often disagreed over personnel and the amount of power that should be given to aides at DOGE. But Gor's title – director of the White House Presidential Personnel Office – does not convey the scope of his influence in the president's orbit. Gor founded a pro-Trump super political action committee during the 2024 presidential election, and co-founded a publishing house with Donald Trump jr that has published books by the president and his allies. The president's aides and allies quickly jumped to Gor's defence on Friday. 'Sergio Gor is a vital member of the team, and he has helped President Trump put together an administration that is second to none,' Steven Cheung, the White House communications director, said in a statement. As for Musk? White House officials said on Friday that Trump was considering selling the bright red Tesla he got in March as a show of support for Musk.
