Stock Market Update Thursday June 5, 2025
- Tom Hason
- Jun 5
- 3 min read
Stock Market Update Thursday June 5, 2025 The S&P 500 momentarily breached the 6,000 level in early trading, buoyed by headlines of renewed U.S.–China diplomatic engagement. However, gains quickly reversed by midday as sentiment soured, driven largely by a sharp intraday decline in Tesla (TSLA). The stock plummeted as much as 20% at its lows, before closing down 14%, marking one of its steepest single-day losses in recent memory. The selloff was fueled by escalating tensions between CEO Elon Musk and the Biden administration, whose once-cordial relationship has devolved into an increasingly acrimonious and public confrontation. While the drama captured headlines, it delivered little amusement for Tesla shareholders, who absorbed significant losses.
Away From Stocks: The U.S. Treasury yield curve flattened as front-end yields rose, led by the two-year note climbing 5 basis points to 3.92%, while the 30-year bond edged down slightly to 4.88% from 4.89% in the prior session. In commodities, WTI crude held firm above $63 per barrel, suggesting ongoing consolidation. Gold retraced gains, slipping to $3,355 per ounce. Bitcoin remained under pressure, trading at $101,000, while market volatility ticked higher, with the VIX advancing nearly a point to the 18 handle.
The ISM services index came in at 49.9, below the expected 52, but it's performing better than manufacturing. While the services number is just below the expansion level, it is trending downwards. The ISM manufacturing index has been below 50 for 28 months. Historically,
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