Markets
Nia Warfield, Luke Kawa

US stocks dip as Trump’s tariff letters dent optimism

Suddenly it sounds a lot more like early April, with high tariffs being bandied about and stocks moving lower. But as President Trump sent letters to different countries informing them what rate their imported goods will be levied at in August if they don’t make a deal, the damage was much less severe than the drubbing that followed Liberation Day, as traders seem to keep hope that the sequel to the Rose Garden Rout and Rebound will have a similar happy ending.

The S&P 500 and Nasdaq 100 closed down 0.8%, while the Russell 2000 slumped 1.5%. Every S&P 500 sector ETF fell except for utilities, with consumer discretionary faring the worst.

The day’s gains were led by Tractor Supply and Palantir, which were up 3.9% and 3.4%, respectively. Meanwhile Tesla led declines, falling 6.8% after CEO Elon Musk’s plan to start an “America Party” fostered another war of words on social media with Trump and analysts said the EV maker stands to lose about $255 million in regulatory credit revenue each quarter going forward. Meanwhile...

Japanese car companies Toyota, Nissan, and Honda all traded lower after Trump’s proposed 25% tariff on goods from Japan and South Korea.

Shares of recently IPO’d retail darling CoreWeave fell 3% after the company announced plans to buy crypto miner (and business partner) Core Scientific in an all-stock deal worth about $9 billion when it was announced — and 3% less now. Shares of the acquired company tumbled nearly 18%.

Stellantis shares fell 5% after the Jeep maker faced a trifecta of bad headlines including an analyst downgrade, reports of lower production numbers in Italy, and a new NHTSA probe.

Semiconductor stocks including Marvell, On Semiconductor, and Taiwan Semiconductor all dipped on the heels of a report that the Trump administration is cracking down on China’s ability to access AI chips via Malaysia and Thailand.

Uber shares jumped 3%, hitting an intraday all-time high of $97. The move extends a recent rally fueled by steady profits and optimism around the ride-hailing giant’s new tech investments.

Bit Digital soared 18% after the publicly traded digital asset platform announced that it had completed its digital asset treasury transition to ethereum from bitcoin.

GEO Group, which derives over 40% of its revenue from contracts with ICE, rose 4.5% after the GOP’s latest budget bill pushed more federal dollars on the growing network of deportation detention centers.

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Tasha Matsumoto
6/5/26
Stocks tumble amid AI sell-off as a blowout jobs report dampens hope of a rate cut this year

The S&P 500 broke its streak of nine consecutive weekly gains, while the Nasdaq 100 had its worst day since April 2025.

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Tech tumbles as momentum stocks run into a blowout jobs report and a wave of profit-taking

The AI trade is under some pressure, taking prices back like... a few days. President Donald Trump is not a fan of the price action.

David Crowther6/5/26
Trump Administration Considers Reclassifying Marijuana As A Less Dangerous Drug

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J. Edward Moreno6/5/26
markets
Helena Cheng

Lululemon’s stretch getting tested: Stock plunges after after outlook is cut

Lululemon shares are down double digits in premarket trading after the company cut its full-year sales and profit outlook, overshadowing a Q1 beat and raising fresh concerns about the brand’s turnaround efforts.

The company now expects fiscal 2026 revenue to be flat to down 1%, compared with its prior forecast for 2% to 4% growth. Guidance for full-year diluted earnings per share was dragged down to a range of $10.95 to $11.15, below the company’s previous guidance of $12.10 to $12.30 and well below Wall Street’s estimate of $13.26.

Key numbers for Q1:

  • EPS of $1.69 vs. the $1.68 expected.

  • Revenue of $2.47 billion vs. the $2.43 billion expected.

The modest top-line beat masked a widening divergence between Lululemon’s geographic markets. While international revenue rose 22% overall with a 30% increase in Mainland China, the bigger problem remains North America, where revenue fell 5%.

Interim co-CEO and CFO Meghan Frank acknowledged during the earnings call that recent product rollouts underperformed. A highly anticipated yoga campaign failed to generate its expected “halo effect” across broader product lines.

Profitability metrics took a major hit, with gross margins contracting by 410 basis points to 54.2% due to mounting tariff costs and promotional markdowns. Operating income consequently fell 37% year over year to $276.9 million.

“We experienced spikes of negative commentary in the media and on social channels with regard to our brand, which had an impact on traffic and overall top-line performance,” Frank said during the earnings call. “And second, not all of our product launches have met our expectations. While we have had several successful launches so far this year, we have seen others as we start Q2 not generate the anticipated guest response.”

Lululemon’s valuation has already been steadily compressing for years. While it was once one of retail’s richly valued stocks, investors have been questioning whether the company can return to the double-digit growth era.

The results also arrive during a leadership transition. Lululemon announced back in April that former Nike executive Heidi O’Neill is set to take over as CEO in September, with investors looking to her to revive growth in North America and restore the brand’s growth.

As Lululemon faces both macroeconomic pressure and brand-specific challenges, its stock has dropped around 40% year to date.

markets
Paige Oamek

US job growth skyrocketed in May, blasting past expectations

The US economy added 172,000 jobs in the month of May, the Bureau of Labor Statistics reported Friday, sending 10-year Treasury yields higher.

The strong May job market surprised economists. Experts had predicted only 85,000 new jobs — just half the reported number. The unemployment rate held steady at 4.3%, as expected.

The job growth story is a hopeful spot for the economy as consumers continue to feel inflationary pressure from the Iran war.

Job gains were buoyed by the leisure and hospitality sector, which added 70,000 jobs, as well as local government, healthcare, and education.

Both the March and April jobs reports were revised upward, making them collectively 93,000 higher than previously reported.

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