US futures edge higher in anticipation of May jobs data, Tesla rebounds after Trump-Musk feud

US stock futures edge up ahead of May jobs data; Tesla rebounds after Trump-Musk feud

US index futures inched higher on June 6, as investors looked ahead to the crucial May non-farm payrolls report, expected to shed light on the strength of the US labor market amid signs of slowing growth and heightened political tensions.

As per the latest report, the U.S. economy added 102,000 jobs in May, missing estimates, while the unemployment rate held at 4.2%, according to data released Friday by the Bureau of Labor Statistics.

The market’s tone is cautious after a week of soft macro data, including weaker-than-expected ISM services and manufacturing surveys and an uptick in weekly jobless claims - further reinforcing expectations that the Federal Reserve may opt for two rate cuts by year-end, starting as early as September. The Fed is, however, widely expected to hold interest rates steady at its June policy meeting.

Tesla shares bounced back in premarket trade after Thursday’s steep 15% fall following an unusually public feud between CEO Elon Musk and US President Donald Trump. The President threatened to cut off federal contracts with Musk’s companies after the billionaire criticized a core tax and spending bill on X, his social media platform. A call between the two is reportedly scheduled to ease tensions. Despite the recovery, Tesla remains the biggest largecap loser of 2025 so far, with its market value down nearly 30% this year to $917 billion, pressured by slowing EV demand and mounting political scrutiny.

On the other hand, geopolitical and trade concerns continue to simmer, with the US-China trade talks still unresolved despite recent summit-level engagement. Meanwhile, in a sign of transatlantic progress, the European Union is reportedly open to lowering tariffs on US fertiliser imports as part of its ongoing trade negotiations with the Trump administration. However, EU officials clarified that no compromises would be made on food safety standards. Currently, US fertilisers face tariffs of up to 6.5% and anti-dumping duties in the EU.