Stock Futures Rise as Trump-Musk Conflict Shows Signs of Easing

TLDR

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Stock futures rose Friday as Trump-Musk feud shows signs of cooling with scheduled peace call between president and Tesla CEO
Dow futures gained 0.3%, S&P 500 futures up 0.4%, Nasdaq 100 futures climbed 0.5% in pre-market trading
Tesla shares jumped over 4% in pre-market after falling 14% Thursday during height of conflict between Trump and Musk
May jobs report expected to show 125,000-130,000 new jobs added, slightly slower than April’s 177,000 additions
White House scheduling peace call while Musk signals willingness to cool tensions and backs off NASA Dragon spacecraft threat

U.S. stock futures climbed Friday morning as investors saw encouraging signs that the heated dispute between President Trump and Elon Musk might be cooling down. The market recovery comes just one day after major indexes fell due to tensions between the two powerful figures.

Dow Jones Industrial Average futures rose 0.3% in pre-market trading. S&P 500 futures gained 0.4% while Nasdaq 100 contracts added roughly 0.5%.

The positive market movement followed Thursday’s dramatic selloff when stocks dropped after the Trump-Musk feud escalated publicly. Tesla shares had fallen more than 14% during Thursday’s session as investors worried about the conflict’s impact on Musk’s business empire.

Tesla stock rebounded strongly in pre-market trading Friday, jumping over 4%. The recovery came after both sides appeared to signal interest in resolving their differences.

Peace Efforts Underway

The White House has scheduled a peace call between President Trump and the Tesla CEO for Friday. Sources close to both camps suggest efforts are being made to de-escalate the situation that had reached fever pitch Thursday.

Musk appeared to soften his stance on his X social media platform Thursday evening. He posted replies suggesting he would be open to a cooling-off period in the dispute.

The Tesla CEO also backed away from his threat to decommission the Dragon spacecraft that NASA uses for missions. This move was seen as a positive step toward reducing tensions with the Trump administration.

BREAKING: Elon Musk says SpaceX will decommission its Dragon spacecraft after Trump suggested the federal government should terminate Musk's subsidies and contracts.
The Dragon spacecraft is the capsule that brought back the astronauts who were stranded in space.
"In light of… pic.twitter.com/xARTHzORGq
— Collin Rugg (@CollinRugg) June 5, 2025

The conflict had injected fresh uncertainty into markets that were already dealing with various economic concerns. Investors had been cautiously optimistic about economic resilience before the feud erupted.

Jobs Report Takes Center Stage

The May nonfarm payrolls report is scheduled for release at 8:30 a.m. Eastern time Friday. Economists surveyed by FactSet expect employers added 130,000 jobs last month, down from April’s 177,000 additions.

The unemployment rate is expected to hold steady at 4.2% according to forecasts. Recent economic data has shown some signs of slowing in the labor market.

Bond markets showed little movement Friday morning. The yield on the 10-year U.S. Treasury note dropped 1 basis point to 4.38% in early trading.

The U.S. Dollar Index gained 0.2% against a basket of major currencies. Currency traders appeared to take the easing tensions as a positive sign for market stability.

Market analysts noted that the Trump-Musk dispute had created additional volatility at a time when investors were already watching economic indicators closely. The jobs report will provide fresh insight into labor market conditions as the economy continues to navigate various challenges.

The feud between Trump and Musk began over policy disagreements and escalated when Musk called for the president’s impeachment while Trump threatened to cut government contracts critical to Musk’s businesses.

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