U.S. stocks close lower as investors remain wary
NEW YORK, June 5 (Xinhua) -- U.S. stock markets finished in the red on Thursday, as investors waited for more clues on conditions of the U.S. labor market and Tesla shares saw deep dive in the clash between U.S. President Donald Trump and Tesla CEO Elon Musk.
The Dow Jones Industrial Average dropped 108.00 points, or 0.25 percent, to close at 42,319.74. The S&P 500 declined by 31.51 points, or 0.53 percent, to 5,939.30. The Nasdaq Composite lost 162.04 points, or 0.83 percent, ending the session at 19,298.45.
Losses were broad, with ten of the eleven major S&P 500 sectors closing lower. Consumer discretionary stocks led the declines, falling 2.47 percent, followed by consumer staples, which slipped 1.20 percent. Communication services was the lone gainer, up a modest 0.06 percent.
On the economic front, new data revealed that U.S. trade deficit narrowed more than expected, as imports fell sharply under the weight of recent tariffs. The U.S. Department of Labor also reported that weekly jobless claims reached their highest level in eight months, while continuing claims hovered near a four-year high -- further signs of a cooling labor market.
Investors remain wary as all eyes now turn to Friday's release of the May nonfarm payrolls report, which analysts say will provide the first meaningful insight into how the shifting trade landscape is impacting the broader U.S. jobs picture.
Meanwhile, Tesla was a major focus after the public dispute between Trump and Musk escalated. The electric vehicle maker's stock tumbled 14.27 percent, extending Wednesday's sharp losses. The sell-off came after Trump expressed public disappointment in Musk, who fired back with critical posts on social media. Musk recently resigned from his role as head of the Department of Government Efficiency, and the spat has raised investor concerns about Tesla's future relationship with federal regulators and policy support.
The phone conversation between Chinese and U.S. heads of state on Thursday bolstered market sentiment in the morning session.
In addition, other large-cap technology companies showed mixed performance. Nvidia and Apple both slipped, down 1.36 percent and 1.08 percent, respectively. Broadcom, which is expected to report earnings after the market closes, edged lower. Meanwhile, Microsoft, Amazon, and Alphabet managed to post slight gains.
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