Markets Stumble as Political Feuds & Economic Uncertainty Take Center Stage
- NexxtGen Markets
- Jun 6
- 3 min read
Good morning, here's the latest Global Financial Markets update from Steve Halls at NexxtGen Markets here in the City of London.
Wall Street slipped into the red, with the S&P 500 down -0.5%, the Nasdaq falling -0.7%, and the Dow dipping -0.2%. While Microsoft hit an all-time high, Tesla plunged 14%, wiping out $152 billion in market value, marking its biggest one-day loss ever.
Meanwhile, DocuSign and Lululemon tumbled after hours, as investors reacted sharply to weak guidance and earnings misses.
Asia Market Overview
Asian markets showed mixed performance, influenced by trade tensions and economic data:
Nikkei 225: -0.2%, as investors weighed U.S. economic uncertainty and Japan’s inflation concerns.
Hang Seng Index: +0.9%, boosted by tech sector gains and hopes for easing trade tensions.
Shanghai Composite: -0.1%, as investors cautiously monitored trade negotiations.
Tesla Tanks Amid Musk-Trump Feud
Tesla shares plummeted 14%, falling below the $1 trillion market cap, after Trump criticised Musk, suggesting cutting federal contracts. Investors fear political tensions could impact Tesla’s business ties, adding regulatory hurdles to its long-term growth plans.
All Eyes on the Jobs Report (NFP)
The U.S. labor market showed fresh signs of cooling, with weekly jobless claims jumping to 247K, well above forecasts. Meanwhile, ADP’s May payrolls report came in at just 37K new jobs, a steep miss from the expected 110K.
Today’s nonfarm payrolls (NFP) report is expected to show 125K new jobs, down from April’s 177K. A disappointing number could fuel recession fears and increase bets on Fed rate cuts.
Broadcom’s AI Boom & Lululemon’s Crash
Broadcom reported record Q2 revenue of $15B, up 20% year-over-year, driven by a 46% jump in AI-related sales. Despite beating estimates, shares dipped 4% after hours, as investors questioned near-term upside.
Meanwhile, Lululemon stock plunged 23%, despite beating Q1 estimates. The hit came after the company cut its full-year outlook, citing economic headwinds and slowing demand.
Market Movers
Several stocks made big moves last week:
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