The stock market experienced a notable downturn on 5 June 2025, primarily driven by escalating tensions between U.S. President Donald Trump and Tesla CEO Elon Musk. President Trump threatened to terminate government contracts with Musk's companies, leading to a sharp decline in Tesla's stock price, which fell by 14.3%, erasing approximately $150 billion in market value. This development also impacted the broader market, with the Nasdaq Composite Index dropping by 0.8% and Trump Media & Technology Group (DJT) shares falling by 8.04% .
The feud raised concerns about potential regulatory challenges for Tesla, particularly in the autonomous vehicle sector, and contributed to increased market volatility. Additionally, investors were cautious ahead of the upcoming U.S. jobs report, leading to a general pullback in equities .
Major indices reflected the day's negative sentiment:
The S&P 500 fell by 0.5%
The Dow Jones Industrial Average declined by 0.3%
The Nasdaq Composite decreased by 0.8% .
In the cryptocurrency market, significant losses were observed, attributed to the broader market sell-off and specific factors such as the Trump-Musk feud, large-scale liquidations, and regulatory uncertainties .
Overall, the market downturn on 5 June 2025 was influenced by a combination of high-profile corporate-government conflicts, investor caution ahead of economic data releases, and ongoing concerns about regulatory and geopolitical developments. 
