05:14 PM EDT, 06/05/2025 (MT Newswires) -- The Nasdaq Composite and the S&P 500 registered their first declines in four days as shares of Tesla (TSLA) tumbled amid a feud between the electric car maker's chief executive, Elon Musk, and President Donald Trump over his administration's tax bill.

The tech-heavy Nasdaq lost 0.8% to 19,298.5 on Thursday, while the S&P 500 lost 0.5% to 5,939.3. The Dow Jones Industrial Average dropped 0.3% to 42,319.7. Barring communication services, all sectors ended in the red, led by consumer discretionary's 2.5% slump.

Tesla's shares slid 14%, the second worst performer on the S&P 500.

Musk opposes Trump's tax bill because he is "upset" about the elimination of electric vehicle credits, CNBC reported, citing Trump. "I'm very disappointed in Elon," Trump reportedly told reporters at the White House. "I've helped Elon a lot."

"Without me, Trump would have lost the election," Musk said in post on social media platform X.

In a Truth Social post, Trump suggested terminating subsidies and government contracts awarded to Musk.

Musk responded on X that "in light of the president's statement about cancellation of my government contracts, SpaceX will begin decommissioning its Dragon spacecraft immediately."

Trump said after market close "I don't mind Elon turning against me, but he should have done so months ago," as the US leader defended his proposed tax measure.

Wall Street was upbeat earlier in the day after Trump said he had a "very good" phone call with his Chinese counterpart, Xi Jinping. In a social media post, Trump said his call with Xi "resulted in a very positive conclusion" for both the US and China.

The two leaders discussed "some of the intricacies of" a preliminary trade deal that suspended most tariffs on each other's imports for 90 days, Trump wrote. "Our respective teams will be meeting shortly at a location to be determined."

The US and China recently accused each other of violating their trade deal.

US Treasury yields were higher, with the two-year rate rising five basis points to 3.93% and the 10-year rate increasing 3.7 basis points to 4.4%.

In company news, Brown-Forman (BF.A, BF.B) issued a downbeat outlook Thursday amid an uncertain consumer backdrop while reporting a disappointing fiscal fourth-quarter performance. The wine and spirits maker's class B shares tumbled about 18%, the worst performer on the S&P 500, while its class A shares slid 17%.

In company news, MongoDB ( MDB ) shares jumped nearly 13%. The database software maker late Wednesday raised its full-year outlook and reported fiscal first-quarter results that exceeded market expectations.

West Texas Intermediate crude oil was up 0.8% at $63.35 a barrel.

Federal Reserve Governor Adriana Kugler said tariffs will likely drive prices higher through 2025 and could lead to job losses, as she voiced support for keeping interest rates steady.

"I see greater upside risks to inflation at this juncture and potential downside risks to employment and output growth down the road," Kugler said. "This leads me to continue to support maintaining the (Federal Open Market Committee's) policy rate at its current setting if upside risks to inflation remain."

The US trade deficit fell the most on record in April as imports plunged following the previous month's jump ahead of anticipated tariffs.

"Goods imports should rebound in May on concern that the 90-day pause on reciprocal duties won't get extended, and with China's 125% reciprocal duty now temporarily slashed to 10%," BMO Capital Markets said.

Weekly applications for unemployment insurance unexpectedly increased, reaching the highest count since October 2024, US government data showed.

"Broadly, the data reflect the continued, gradual cooling in the labor market," Jefferies said.

The Bureau of Labor Statistics is expected to report Friday that the US economy added 126,000 nonfarm jobs last month, which would mark a drop from a 177,000 increase reported for April, according to a Bloomberg poll.

Challenger Gray & Christmas said Thursday that US job cuts totaled 93,816 last month, up 47% year on year, but down 12% sequentially.

Gold was down 0.6% at $3,379 per troy ounce, while silver jumped 3.4% to $35.82 per ounce.