US stocks trader Thomas McCauley works on the floor of the New York Stock Exchange. (AP Photo/Richard Drew)
WASHINGTON, United States — Wall Street stocks tumbled Thursday as a row between US President Donald Trump and Tesla boss Elon Musk erupted. The electric vehicle firm’s share price tumbling around 14 percent.
The Dow Jones Industrial Average slumped 0.3 percent to 42,319.74. Meanwhile, the broad-based S&P 500 Index lost 0.5 percent to 5,939.3.
The tech-heavy Nasdaq Composite Index fell 0.8 percent to 19,298.45.
The relationship between Trump and Musk imploded in public view. The US president expressed disappointment with his billionaire former aide’s criticisms.
READ: Before the ‘big beautiful breakup’: Musk and Trump’s bromance
Musk, who had slammed the Republican president’s proposed massive spending bill, hit back in real time on social media.
Tesla shares plunged by more than 14 percent, losing over $100 billion in market capitalization. This happened as Trump said he had asked “crazy” Musk to leave his administration.
He also threatened to take away the tech tycoon’s government contracts.
Patrick O’Hare of Briefing.com said Tesla had weighed “heavily on the broader market,” particularly the consumer discretionary sector.
READ: Elon Musk to reduce White House role as Tesla profits plunge
“But all in all, the market itself is holding up reasonably well, given the scope of that decline,” he added.
Investors also digested the outcome of a long-awaited phone call between Trump and Chinese President Xi Jinping. They were looking for signs that both leaders could open doors to a longer-lasting truce in trade tensions.
“There were no new negative developments,” O’Hare said. He added that markets appreciated the mutual approach of allowing more time to work things out.
Looking ahead, investors will be eyeing official employment data due Friday, to gauge the health of the US economy as Trump’s tariffs ripple through various sectors.