Market Shifts: Tech Stocks Wobble as Trade Talks Heat Up

The stock market took a dip on Thursday, with major indexes showing declines. The Dow Jones Industrial Average fell by 0. 3%, while the S&P 500 and Nasdaq Composite dropped by 0. 5% and 0. 8%, respectively. This downturn came after a few days of gains, which were modest due to ongoing uncertainty about trade policies. The market had been recovering from early April lows, with the S&P 500 and Nasdaq seeing significant gains in May. This recovery was driven by easing concerns about Trump's tariff strategy and strong corporate earnings, despite the lingering uncertainty in trade policy. Investors are eagerly awaiting signs of progress in trade negotiations, especially as deadlines for new tariffs approach. A recent 90-minute call between Trump and Chinese President Xi Jinping focused on trade, with both sides agreeing to more talks. This conversation comes after a week of accusations between the U. S. and China about violating a recent agreement to reduce tariffs while negotiating a broader deal. The U. S. trade deficit narrowed more than expected, with imports dropping due to tariffs. Weekly jobless claims were slightly higher than anticipated, setting the stage for Friday's May jobs report, which is a crucial economic indicator. Tesla's stock took a significant hit, closing 14% lower after a public dispute between Trump and Musk. Musk had criticized a tax and spending bill, leading Trump to express disappointment. Musk responded with a series of social media posts, adding to the tension. This feud raises questions about the government's approach to issues affecting Tesla, as Musk recently stepped down from his role in the Department of Government Efficiency. Other major tech stocks had mixed results. Nvidia and Apple each dropped about 1%, while Meta Platforms and Broadcom saw slight declines. Microsoft, Amazon, and Alphabet experienced minor gains. Several companies saw significant stock movements after releasing earnings reports. MongoDB's shares surged 13% due to better-than-expected results and a positive outlook driven by AI-related demand. PVH's stock tumbled 18% after warning that tariffs would impact profits, and Brown-Forman dropped 18% due to a challenging economic outlook. The yield on the 10-year Treasury note rose to 4. 40%, affecting borrowing costs for consumers and businesses. The U. S. dollar index remained steady at 98. 75. In the world of cryptocurrencies, Bitcoin fell to $101, 600, down from a recent high of near $106, 000, and is now at its lowest level since mid-May. Gold futures dropped 0. 5% to $3, 380 an ounce, after reaching a one-month high earlier. West Texas Intermediate crude oil futures rose 0. 8% to $63. 35, rebounding from a previous decline. These fluctuations reflect the broader market's volatility and the impact of global trade tensions on various asset classes.