ADDX GO Market Morning Wrap - 6th June

The US stock market opened higher and closed lower on Thursday, Eastern Time. The three major indexes closed down collectively, with the sharp drop in Tesla's stock price weighing on the Nasdaq and the S&P 500 indexes.

 

As of the close, the Dow Jones Industrial Average fell 0.25% to 42,319.74; the S&P 500 Index fell 0.53% to 5,939.30; and the Nasdaq Composite Index fell 0.83% to 19,298.45.

Tesla was one of the worst-performing stocks on Thursday, plummeting more than 14% and its market capitalization falling below $1 trillion.

 

US President Trump publicly expressed his "great disappointment" with Tesla CEO Elon Musk on Thursday. Subsequently, Musk hit back on social platform X, saying, "Trump couldn't have won the election without me."

The dispute between the two continued to escalate. Trump then called Musk "crazy" and hinted that he might cancel the government contracts of Tesla and its subsidiaries.

 

In terms of sectors, metal raw materials and mining led the gains. Pan-American Silver rose more than 7%, Hecla Mining Company rose more than 4%, and Southern Copper Corporation rose more than 2%.

 

Cryptocurrency and space-related concept stocks led the declines. Bit Digital fell nearly 9%, Virgin Galactic fell more than 7%, and Coinbase fell more than 4%.

 

In addition, Circle, the "first stock of stablecoins", soared 168% on its first day of listing.

 Musk & Trump

• Trump said he was "very disappointed" with Musk, and Musk quickly retorted: I haven't seen the bill. On June 5th, local time, US President Trump talked about Musk, saying that he didn't know if he could still maintain a good relationship with him. Trump said that day that he was "very disappointed" with Musk.
• Musk: Trump's Tariff Policy Will Lead to US Economic RecessionElon. Musk said through social media that US President Trump's tariff policy would lead to a recession in the US economy in the second half of this year.
• Musk Publicly Stated: Trump Should Be Impeached. On June 5th, local time, after the public feud between US President Trump and US entrepreneur and former head of the "Department of Government Efficiency" Musk began, Musk publicly stated on social media that US President Trump should be impeached.Musk replied "yes" in a post on social media platform X that supported the impeachment of Trump that day. In addition, Musk also said that Trump could not have successfully won the presidential election without his help.
• Musk and Trump's Public Feud Causes Tesla's Market Cap to Evaporate by Over $150 Billion. On June 5th, local time, affected by the public conflict between Tesla CEO Musk and US President Trump, Tesla's stock price fell 14.26% that day, and its market capitalization evaporated by more than $150 billion.
• In Response to Trump's Threat to Cancel Contracts, Musk Says He Will Immediately Retire the "Dragon" Spaceship. Elon Musk said that in view of US President Trump's statement about canceling government contracts, SpaceX would immediately begin to retire its "Dragon" spaceship. It is understood that the current manned spaceflight activities in the United States are highly dependent on SpaceX's "Dragon" spaceship.

Global Hotspots

• In Response to Trump's Tariff Pressure! The European Central Bank Cuts Interest Rates by 25 Basis Points as Scheduled. On Thursday, local time, after inflation reached the target level and the economy was repeatedly hit by Trump's tariffs, the European Central Bank cut interest rates by 25 basis points as scheduled, the eighth rate cut in a year.
• The EU Cancels the Duty-Free Policy for Ukrainian Agricultural Products. The autonomous trade measures (ATM) launched by the EU in 2022 to support Ukraine and its export potential officially ended on the 5th, local time, and will not be extended. This means that the EU has cancelled the duty-free policy for Ukrainian agricultural products.
• NATO Secretary-General: Most Member States Support Increasing the Military Spending Target to 5% of GDP. On Thursday (June 5th), local time, NATO Secretary-General Mark Rutte said that most member states supported the request put forward by US President Trump to increase their national defense spending to 5% of GDP and were ready to further increase security spending.

Company News

• Microsoft CEO: The Relationship with OpenAI is Adjusting, but the Cooperation Remains Solid. Satya Nadella, the CEO of technology giant Microsoft, recently said that the important partnership between Microsoft and OpenAI is indeed changing, but it remains solid.
• Apple: App Store Facilitated $1.3 Trillion in Developer Turnover and Sales in 2024. Apple announced on June 5th that research shows that the global App Store facilitated a total of $1.3 trillion in developer turnover and sales in 2024. Due to the increased demand for online food delivery, self-pickup, and daily necessities orders, the sales of physical goods and services exceeded $1 trillion.

Forex & Commodities

WTI crude oil futures closed up 0.83% at $63.37 per barrel. Brent crude oil futures closed up 0.74% at $65.34 per barrel.

 

COMEX gold futures closed down 0.68% at $3376.1 per ounce. COMEX silver futures closed up 3.31% at $35.7955 per ounce.

 

In New York's late trading, the US dollar index fell 0.07% to 98.74, and the performance of non-US currencies was mixed.

Key Events

• Bulgaria is Allowed to Join the Eurozone: According to a report on the website of German TV One on June 4th, Bulgaria has been allowed to introduce the euro, and the European Commission has given the green light for this. The commission said that Bulgaria has met all the necessary conditions for introducing the common currency euro next year.

Cryptocurrency

Bitcoin fell 2.8% to $102,055, and the cryptocurrency's 24-hour trading volume rose 7.2% to $48.25 billion.

 

Ethereum (ETH-USD), the second-largest digital asset by market value, fell 3.6% to $2,531.

 

XRP (XRP-USD) lost 3.4%, BNB (BNB-USD) fell 3.5%, and Solana (SOL-USD) declined 6.1%.

 

Dogecoin (DOGE-USD) slumped 8.3%, and Cardano (ADA-USD) fell 4.6%.

 

The total market value of the cryptocurrency industry decreased 3.1% in the past 24 hours to $3.21 trillion, with trading volume rising 10.4% to $116.43 billion.

Key Events

• Trump Media Company Submits Bitcoin ETF Application, Plans to List on the New York Stock Exchange. On Thursday, local time, the US-listed company Trump Media & Technology Group (DJT) announced that it has submitted an S-1 registration document to the US Securities and Exchange Commission to issue the "Truth Social Bitcoin ETF", and it will be listed on the New York Stock Exchange after completing the approval process.