Key Takeaways

• The S&P 500 fell 0.6% on Thursday, June 5, as a rise in unemployment claims raised doubts about the labor market ahead of Friday morning's jobs report.

• Tesla shares fell as CEO Elon Musk and President Donald Trump expressed their disagreement over the "big, beautiful bill."

• Shares of discount retailer Dollar Tree clawed back some of their recent losses following an upgrade from JPMorgan analysts, who cited strong growth potential.

Major U.S. equities indexes moved lower Thursday after the Labor Department reported an uptick in initial claims for unemployment benefits, amplifying concerns about the labor market ahead of Friday morning's jobs report.

The S&P 500 lost 0.5%. The Dow slipped 0.3%, while the tech-heavy Nasdaq ended the session 0.8% lower.

Shares of alcoholic beverage maker Brown-Forman (BF.B) plummeted 17.9%, falling the most of any S&P 500 stock and sinking to their lowest level in more than 11 years. The downturn came after the company behind Jack Daniel's whiskey said it faces a challenging operating environment this year, citing geopolitical volatility, consumer headwinds, and uncertain tariff impacts.

Tesla (TSLA) shares plunged 14.3% as tensions mounted between CEO Elon Musk and President Donald Trump. Since departing his role with the Trump administration last week, Musk has repeatedly criticized the Trump-backed budget reconciliation bill, prompting Trump to question his relationship with the SpaceX chief and former government efficiency official. In addition, a report earlier this week showed Tesla's sales last month in Germany, Italy, and the U.K. fell compared with a year ago.

Palantir Technologies (PLTR) shares dropped 7.8% on Thursday, extending a pullback that began in Wednesday's session. Investor optimism about the big data analytics firm's expanding business with the federal government helped the stock hit an all-time closing high on Tuesday. Still, the integration of Palantir's Foundry platform into numerous government systems has stirred controversy. Speaking with CNBC on Thursday, Palantir CEO Alex Karp rejected a New York Times report indicating the company may have been involved in compiling a surveillance database on U.S. citizens.

After posting the steepest drop in the S&P 500 on Wednesday, Dollar Tree (DLTR) shares roared back, jumping 9.1% to secure Thursday's best performance in the benchmark index. The recovery came after JPMorgan upgraded Dollar Tree stock to "overweight" from "neutral." Analysts highlighted growth potential driven by the retailer's expansion of its multi-price-point "MPP 3.0" strategy as Dollar Tree updates store formats to offer a broader range of products.