U.S. stocks retreated across the board on June 5, with major indexes posting moderate losses. The Dow Jones Industrial Average closed down 0.25% at 42,319.74, while the S&P 500 declined 0.53% to 5,939.3. The Nasdaq Composite saw the steepest drop, falling 0.83% to 19,298.45 as technology stocks led the market lower.
Tesla shares plunged 14.26% in their worst single-day performance since March, wiping out over $150 billion in market value. The selloff followed escalating tensions between CEO Elon Musk and former President Donald Trump. Other tech stocks also suffered losses, with Super Micro Computer dropping more than 7%, AMD falling over 2%, and both Apple and Nvidia declining more than 1%.
The broader market weakness reflects growing investor caution amid political uncertainties and concerns about tech sector valuations. While the overall declines remained contained, the concentrated selloff in former market leaders suggests shifting sentiment toward high-growth names. The dramatic reaction in Tesla shares highlights how personality-driven tech companies remain particularly vulnerable to reputational risks.
Market analysts note the pullback comes as investors await key economic data and Federal Reserve policy signals that could influence market direction. The tech sector’s underperformance indicates potential rotation away from growth stocks amid changing market conditions and elevated interest rate expectations. The day’s trading activity underscores how political developments can quickly impact market valuations, especially for companies with high-profile leadership.
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