Volatility on Wall Street: Tesla Feud and Trade Talks Rock Stock Markets

Wall Street indexes closed lower on Thursday, largely driven by a significant drop in Tesla shares amid intensifying tensions between CEO Elon Musk and President Donald Trump. Despite movement toward improved U.S.-China trade relations, investors remain cautious as economic slowdown fears arise.

The public discord between Musk and Trump, particularly surrounding issues of electric vehicle tax benefits, resulted in Tesla losing over $150 billion in value. Market analysts like Mark Spiegel argue that while Tesla's plight is noteworthy, it doesn't necessarily signal broader market instability.

Economic data pointing to faltering job growth and rising inflation fears have further stoked volatility. Federal Reserve officials suggest holding rates steady, while the market remains attuned to forthcoming data and policy shifts. Investors keenly await the upcoming nonfarm payrolls report as another potential indicator of economic health.

(With inputs from agencies.)