CNBC Business News Update - Market Close: Stocks Lower, Tesla Tanked 14% On Trump-Musk Feud, May Jobs Report On Deck 6/5/25

Episode Date: June 5, 2025

From Wall Street to Main Street, the latest on the markets and what it means for your money. Updated regularly on weekdays, featuring CNBC expert analysis and sound from top business newsmakers. Anchored by CNBC's Jessica Ettinger.

I'm Jessica Edinger, CNBC. Wall Street opens Friday morning after a very public fight between President Trump and Elon Musk overshadowed the president's phone call with the president of China. Markets were lower, the Dow down 108 points. That was a quarter percent. The S&P 500 index down 31.5 percent and the NASDAQ fell 162 points, 8 tenths of 1%. The Dow and the NASDAQ are now lower for the year. Tesla shares tanked 14% as the feud between CEO Elon Musk and President Trump got hot on Thursday. Here's CNBC's Eamon Javers with some of what the president posted.

It's business and it's personal between President Trump and Elon Musk, with the president responding inevitably, I think you could say, to Elon Musk's jabs on social media, the president posting on his social media account. The easiest way to save money in our budget is to terminate Elon's governmental subsidies and contracts. I asked him to leave. I took away his E.V. mandate that forced everyone to buy electric cars that no one else wanted and he just went crazy.

And Javers has this shocking Musk post. Elon Musk dropped another time to drop the really big bomb at real Donald Trump is in the Epstein files. That's the real reason they have not been made public. Have a nice day DJT! NBC News notes that President Trump and others who have been identified in Epstein's social circles have denied any involvement in Epstein's criminal behavior. The back-and-forth rattled Tesla investors after Musk posted, without me, Trump would

have lost the election. And the world's richest man has threatened to make lawmakers face primaries if they vote for the president's budget bill that will raise the deficit and undo Musk's doge cuts. Investors wanted Musk to get back to his companies, but Musk could continue in politics. China's President Xi Jinping held a phone call with President Trump. The two countries are poised for trade officials to meet and resume trade talks over tariffs. Here's President Trump at the White House. We had a very good talk and we've straightened out any complexity. It's very complex stuff and we straighten it out.

CNBC's Eunice Yun has the take from Beijing. This statement and the conversation that President Xi Jinping and President Trump had had, I think, is going to be perceived here in China as a win for China. The readout from the Chinese side is suggesting that President Xi Jinping had essentially given a lecture to President Trump on the correct course of action for Sino-U.S. relations. Investors are waiting for the May jobs report coming Friday morning. The weekly jobless claims number was slightly alarming, the highest in eight months.

The new Nintendo Switch 2 video gaming console is out the first in eight years. There was a long line at the New York City Nintendo store for it. There's a big launch party at the Nintendo flagship store. Some celebrities, we saw Bowen Yang from Saturday Night Live, he was here picking up his Switch 2. It cost $450.

Nintendo got kind of caught on their back foot with tariffs. They ended up keeping the console the same price at $450, but did need to raise prices on some accessories and other things to kind of make up the cost. This is produced in Vietnam, by the way, which has a lower tariff rate, of course, than China. CNBC's Steve Kovac. On Friday's watch list, it's a jobs Friday as we mentioned. We get the jobs report from the government. We also get the latest on consumer credit. It's national donut day with deals and discounts at various chains. New in theaters, IFC's dangerous animals, XYZ's horror film, The Ritual, Lionsgate's

John Wick ballerina, Jessica Erringer CNBC.