Wall Street Wavers as Tesla Tumbles Amid U.S.-China Trade Optimism

Wall Street faced a tumultuous session on Thursday with major indexes slipping, led by a substantial fall in Tesla shares which overshadowed positive news from U.S.-China trade discussions. The electric car manufacturer's stock plunged over 9% amid escalating tensions between CEO Elon Musk and President Donald Trump.

Investor sentiment was rattled not only by Tesla's tumble but also by broader concerns over the economic impact of trade uncertainties, following weaker-than-expected payroll and services data. Meanwhile, political intrigue mounted as both Trump and Chinese leader Xi Jinping extended invitations for future visits.

Economic instability continued to loom large as stakeholders awaited clarity on trade agreements, alongside anticipated steady interest rates from the Federal Reserve. Despite a recent rally, the market remained cautious with economic indicators such as jobless claims and nonfarm payrolls data under scrutiny.

(With inputs from agencies.)