Overview of Wall Street’s Performance
On the last day of May, all three major indices on Wall Street closed in negative territory. The Dow Jones Industrial Average, comprising 30 large-cap companies, fell by 0.25% to 42,319.74 points. The S&P 500, which includes the most valuable companies, dropped by 0.53% to 5,939.30 points. The tech-heavy Nasdaq Composite index declined by 0.83% to 19,298.45.
Economic Data and Market Reaction
Investors reacted to the release of U.S. economic data on new applications for government unemployment assistance. The weekly figure increased by 8,000 to reach a total of 247,000 for the week ending May 31, surpassing the expected 235,000.
Tesla’s Significant Decline
A notable drop occurred in Tesla’s stock, which plummeted by 14.26%. This decline came after U.S. President Donald Trump expressed his disappointment with Tesla CEO Elon Musk. In response, Musk took to Twitter (X) stating that without his support, Trump would have lost the election. The exchange escalated to personal attacks, with Trump calling Musk “crazy” and threatening to cancel all government contracts with companies associated with him. Musk countered by suggesting Trump’s appearance in Jeffrey Epstein’s partner files.
Trade Talks Between U.S. and China
President Trump spoke with Chinese President Xi Jinping to address trade concerns. Initially, the market viewed this as a positive development; however, the momentum faded when no progress was reported following the conversation.
Sector Performance
Among the 11 sectors tracked by the S&P, only communication services ended in positive territory. Consumer discretionary led the decline, largely due to Tesla’s performance. Within the Dow Jones, Procter & Gamble (-1.90%) and Walmart (-1.42%) experienced the most significant losses.
Key Questions and Answers
- What caused Wall Street’s decline? The drop was primarily due to rising jobless claims in the U.S. and a significant 14.26% fall in Tesla’s stock following the public disagreement between President Trump and Elon Musk.
- How did the communication between Trump and Xi Jinping affect the market? Initially, investors viewed the trade talks as positive. However, when no progress was reported after their conversation, market momentum faded.
- Which sectors performed well and poorly on Wall Street? Among the 11 S&P sectors, only communication services ended positively. Consumer discretionary led the decline, with Tesla playing a significant role.
