S&P 500 Crosses 6,000 as the Trump-Musk Spat Simmers Down

Published: June 6, 2025 by Omor IE

Key Points

The drama between Elon Musk and President Donald Trump seems to have cooled down.
The macro metrics also came in quite benign today, with job numbers being good.
The stock market has responded positively.
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The stock market was dragged down yesterday due to a sudden clash between Elon Musk and Donald Trump. Elon Musk accused Trump of lying, whereas Trump implied that Elon Musk may have “Trump Derangement Syndrome”. This kept on escalating, with Musk tweeting out a poll on creating a new political party, along with various other X posts about Trump’s tax bill. Tesla (NASDAQ: TSLA) tanked by over 18% due to the spat.

However, this has simmered down somewhat, as the barrage of posts by Musk hasn’t continued (so far). Musk later implied on X that he was interested in making peace with Trump, with rumors of a potential call between the two. Then, Trump said in an interview with ABC News that Elon Musk “has lost his mind,” and he was “not particularly” interested in talking to him.

The stock market is also reacting positively due to good macroeconomic data.

Here’s a market update as of 10:30 AM (ET) today.

The S&P 500 is up 61.69 points, or 1.04%.
The Nasdaq Composite is up 209.22 points, or 1.08%.
The Dow Jones Industrial Average is up 555.23 points, or 1.31%.

Macros

Nonfarm Payrolls came in at 139,000 vs. the 126,000 estimate.
The unemployment rate remains steady at 4.2% and is in line with estimates.
Hourly earnings rose 3.9% vs. 3.7% estimated.
Average Workweek Hours are in line with estimates at 34.3.
Labor Force Participation came in at 62.4% vs. the 62.6% forecast.
Private Payrolls came in at 140,000 vs. the 120,000 forecast.
Government Payrolls declined by 1,000.
Manufacturing Payrolls declined by 8,000.

While Macros came in well, President Donald Trump posted some comments that are making some traders doubt how interest rate cuts will pan out this year.

Trump made the following comments:

“GREAT JOB NUMBERS, STOCK MARKET UP BIG! AT THE SAME TIME, BILLIONS POURING IN FROM TARIFFS!!!”
“If ‘Too Late’ at the Fed would CUT, we would greatly reduce interest rates, long and short, on debt that is coming due. Biden went mostly short term. There is virtually no inflation (anymore), but if it should come back, RAISE ‘RATE’ TO COUNTER. Very Simple!!! He is costing our Country a fortune. Borrowing costs should be MUCH LOWER!!!”
“‘Too Late’ at the Fed is a disaster! Europe has had 10 rate cuts, we have had none. Despite him, our Country is doing great. Go for a full point, Rocket Fuel!”
“AMERICA IS HOT! SIX MONTHS AGO IT WAS COLD AS ICE! BORDER IS CLOSED, PRICES ARE DOWN. WAGES ARE UP!”
“Prices are down, income is up, our Border is closed, gasoline is CHEAP, inflation is DEAD — Our Country is BOOMING! Companies are pouring into America like never before!”

Comments From the Federal Reserve

The Federal Reserve’s Michelle W. Bowman made the following comments:

“Bank regulators will publish a proposal in the near future to refine the enhanced supplementary leverage ratio.”
“The Fed is considering an independent supervisory and regulatory framework for community banks.”
“Fed will review supervision and capital rules for large and small banks.”
“The Fed will be reviewing a wide range of existing guidance.”
“The Fed will also be reconsidering the use of horizontal reviews of specific issues at numerous banks.”