Halftime Report: Reacting to Trump’s Call with Xi (June 5, 2025)

Introduction In the June 5, 2025, episode of CNBC's Halftime Report, host Scott Wapner delves into the significant geopolitical and economic developments impacting the markets. The primary focus centers on the recent phone call between U.S. President Donald Trump and Chinese President Xi Jinping, as well as the escalating public dispute between President Trump and business magnate Elon Musk. This detailed analysis provides listeners with insights from top investors and Washington correspondents, offering a comprehensive understanding of the potential market implications.

Trump’s Call with President Xi: Analyzing the “Deal” At [01:00], Scott Wapner opens the discussion by highlighting President Trump's announcement of a productive phone call with President Xi Jinping. Trump asserted, “We had a very good talk. We straightened out some complex stuff. We have a deal, as you know, we have to make sure everyone understands what the deal is” (01:00). This declaration raised eyebrows, especially since just a day prior, Trump had labeled negotiations with Xi as challenging.

Eamon Javers, CNBC’s Washington correspondent, provides context at [02:48], explaining that the “deal” likely pertains to the existing tariffs on China. He states, “What Trump is saying is that the deal has already been struck. I put the tariffs on and that's the deal. And then if we take the tariffs off at some point after this pause, you know, that will be a new deal” (02:48). Despite the positive rhetoric, Javers emphasizes the lack of concrete details: “We didn't get any specifics. Nothing other than a sense that there's going to be another high-level meeting” (02:48).

The discussion underscores the anticipation Wall Street holds for tangible outcomes from such diplomatic engagements. The mutual invitations for both leaders to visit each other’s countries suggest a move towards warmer diplomatic relations, albeit without immediate market relief due to the absence of explicit agreements.

Trump vs. Elon Musk: A Public Fracture Unfolds Shifting focus, Scott Wapner addresses the growing tension between President Trump and Elon Musk. At [04:17], Wapner notes, “The market took a bit of a turn on all of that because Tesla shares were near the lows of the day, down some 6%” (04:17). This downturn reflects the market's sensitivity to high-profile disputes, especially involving influential figures like Musk.

Eamon Javers elaborates on the deteriorating relationship at [05:08]: “Elon Musk has been a close ally, even visiting the Oval Office multiple times. Now, with Musk publicly criticizing the tax bill and the EV mandate cuts, it's clear there's a significant rift” (05:08). Musk’s aggressive stance on social media, particularly his tweets refuting Trump’s claims about his involvement in the bill, amplifies the public nature of their fallout.

Market Reactions and Expert Insights The episode extensively covers the market's response to these geopolitical and corporate developments. At [06:51], Scott Wapner observes, “We are green across the board, but Tesla's down some 6%... NASDAQ is weaker” (06:51). This indicates a mixed market sentiment where overall indices remain buoyant, yet vulnerabilities emerge from specific sectors like technology.

Investment committee members, including Brian Belsky and Bill Baruch, provide their perspectives:

• Brian Belsky at [07:42]: “I think longer term it's very, very good. We're getting closer and closer” (07:42) emphasizes optimism about eventual positive outcomes from the Trump-Xi discussions, despite short-term volatility.

• Bill Baruch at [08:30]: “I think there was some levitation this week in anticipation of that, but we do need to hear more facts” (08:30) reflects the cautious stance, acknowledging initial market optimism yet calling for more substantive information to sustain confidence.

Sector Highlights: Technology Leads the Way A significant portion of the episode is dedicated to analyzing sector performance, particularly the technology sector's impressive gains. At [13:06], Scott Wapner highlights, “Technology, Brian, up 10%” (13:06), signaling robust growth driven by innovations and strong earnings.

Brian Belsky elaborates at [14:17], “Tech is here to stay and the growth is real” (14:17), underlining the sector's foundational role in driving market resilience. He notes that the focus has broadened beyond the so-called “Magnificent Seven,” encompassing a wider array of tech companies contributing to sustained growth.

High-Profile IPOs and Stock Movements The episode also covers notable market events, such as the highly anticipated IPO of Circle. At [12:24], Wapner mentions, “Circle is up 144% in its very first moments of trade” (12:24), highlighting the enthusiasm surrounding innovative financial technologies.

Investment committee members discuss strategic stock movements:

• Brian Belsky talks about adjusting portfolios with investments in cybersecurity firms like Check Point, citing their strong earnings growth prospects compared to peers.

• Stephanie Link shares her strategy of investing in secular growth stocks within healthcare, emphasizing companies like Intuitive Surgical for their robust earnings growth and market position.

Upcoming Events and Earnings Reports As the episode progresses, attention shifts to upcoming earnings reports and economic indicators. Scott Wapner mentions Broadcom’s significant earnings report, anticipating its impact on market sentiment. The anticipation around these reports underscores the continuous interplay between corporate performance and market dynamics.

Publicized Political Disputes and Their Implications Towards the end, the focus returns to the Trump-Musk controversy. At [23:04], Eamon Javers describes the escalating public dispute: “Elon Musk posting on X his social media platform... Without me, Trump would have lost the election” (23:04). This contentious exchange not only affects personal reputations but also carries broader implications for investor confidence and market stability.

Final Thoughts and Closing Remarks In wrapping up, Scott Wapner emphasizes the ongoing volatility and the need for investors to stay informed: “This really is an incredible developing story” (27:42). The episode concludes with a reminder of the upcoming Closing Bell segment, where listeners can expect further analysis and updates on the day’s events.

Conclusion This episode of Halftime Report delivers a thorough examination of the intertwined nature of political developments and market reactions. By dissecting the nuances of President Trump’s interactions with global leaders and the high-profile fallout with Elon Musk, the discussion provides valuable insights for investors navigating the complexities of current market conditions. The expert commentary from CNBC’s top investors underscores the importance of staying vigilant amidst evolving geopolitical landscapes and corporate dynamics.

Notable Quotes with Timestamps:

• Scott Wapner [01:00]: “We had a very good talk. We straightened out some complex stuff. We have a deal.”

• Eamon Javers [02:48]: “We didn't get any specifics. Nothing other than a sense that there's going to be another high-level meeting.”

• Scott Wapner [04:17]: “Tesla shares were near the lows of the day, down some 6%.”

• Brian Belsky [07:42]: “I think longer term it's very, very good. We're getting closer and closer.”

• Bill Baruch [08:30]: “I do think longer term it's very, very good. We're getting closer and closer.”

• Brian Belsky [14:17]: “Tech is here to stay and the growth is real.”

• Eamon Javers [23:04]: “Without me, Trump would have lost the election.”

This comprehensive summary encapsulates the key discussions and insights from the Halftime Report episode, providing a valuable resource for those seeking to understand the intricate relationship between politics and market dynamics.