Top stories for this morning: Tesla's failure over Musk and Trump squabbling, Microsoft's record, Omada's IPO

The conflict between Ilon Musk and Donald Trump has sharply escalated: mutual public accusations and threats led to the collapse of Tesla shares by 14%. Meanwhile, Microsoft's shares reached an all-time high and put the company back in first place in the world by market capitalization - $3.48 trillion, ahead of Nvidia and Apple. At the same time, Omada Health, a startup specializing in online health programs, successfully completed its IPO: it sold shares at $19 each and received a valuation of about $1.1 billion. These and other topics are covered in our review of key events for the morning of June 6.

Tesla (TSLA) shares plummeted sharply on Thursday - down 14.26% - as the public conflict between CEO Ilon Musk and US President Donald Trump escalated, wrote Yahoo Finance. It was the biggest drop in Tesla's securities since March and the second biggest since September 2020. The company's market capitalization fell by more than $150 billion, the largest decline in its history.

The conflict began after Trump expressed «disappointment» in Musk in the Oval Office, and the latter responded by writing on the social network X, which he owns, that without his support, Trump could not have won the election. Trump subsequently threatened to strip Musk of all government contracts and subsidies, to which Musk said SpaceX would immediately decommission the Dragon spacecraft.

«The easiest way to save billions in our budget is to end all subsidies and government contracts for Ilon. It always amazed me that Biden didn't do that!» - Trump wrote on Truth Social.

The events marked a sharp turnaround in a relationship long considered pivotal to Trump's second term. Musk publicly endorsed Trump in the summer of 2024, leading to a wave of endorsements from the tech and venture capital community, which had largely ignored Trump during his first term, Yahoo Finance wrote.

Musk even headed the Trump-created Department of Government Efficiency (DOGE), but left the post in May, choosing to focus on his businesses - Tesla, SpaceX and xAI. This week, however, Musk began sharply criticizing Trump's flagship tax reform, calling it a «disgusting abomination.» In response, the president accused Musk of betrayal and reminded him that he was well aware of the bill's substance, including the planned cuts to carbon credits, one of Tesla's sources of revenue.

Despite the overall stock market decline, Microsoft shares rose 0.8 percent Thursday to a record high of $467.68 a share, reports CNBC. The stock hit the record for the first time in 11 months. That puts Microsoft back in first place in the world in terms of market capitalization at $3.48 trillion. By comparison, Nvidia's market capitalization is $3.42 trillion and Apple's is just under $3 trillion.

The previous record closing of Microsoft was recorded in July 2024. Since the beginning of the current year, the company's shares have risen by 11%, while the Nasdaq index remained at the same level.

While tech stocks in general were showing declines - particularly due to Tesla's stock plummeting amid the public conflict between Musk and Trump - Microsoft investors ignored the negative news backdrop.

In an interview with Bloomberg, the company's CEO Satya Nadella emphasized the importance of partnership with OpenAI (creator of ChatGPT). He reminded that OpenAI made a major contribution to the development of Microsoft Azure cloud service. Microsoft's total investment in OpenAI has already reached nearly $14 billion. «Why would any of us want to spoil it?», Nadella noted, commenting on the alliance with the AI developer.

Shares of Circle, the issuer of the USDC stablecoin, skyrocketed on the first day of trading Thursday, jumping 235% at the peak, wrote Yahoo Finance. By the close of the session, the price was $83.23 - 168% above the $31 offering price. The papers opened at around $69, and trading was halted several times due to high volatility.

After the first day of trading, Circle's market capitalization exceeded $16.6 billion.

Circle issues USDC stablecoin, the rate of which is pegged to the dollar. As of the end of the first quarter, there were USDC in circulation totaling $60 billion. In the first three months of the year, total revenue and reserve income totaled $578.6 million - 58.5% more than a year earlier. Circle's primary source of revenue is «reserve income» from its collateralized asset allocation (cash and Treasury securities). Adjusted EBITDA for the quarter reached $122.4 million.

The company had already attempted to go public in 2021 through SPAC, but abandoned the idea in 2022.

Circle is the second-largest issuer of stablecoins in the world after Tether (USDT), with nearly $150 billion in circulation.

Circle's launch coincided with a favorable environment in the crypto market. Donald Trump's election victory and his family's participation in the crypto business provided additional support for the sector. In early June, bitcoin hit an all-time high, exceeding $110,000.

Public companies are also increasing their participation in cryptocurrency assets, imitating a strategy implemented by Michael Saylor Strategy (MSTR), which uses bitcoins as a treasury asset.

Omada Health, a company specializing in virtual care for patients with chronic diseases, has set its initial public offering (IPO) price at $19 per share - in the middle of its previously announced range, reports CNBC.

In a press release, the company said the offering offers 7.9 million shares, equivalent to $150 million. The securities will trade on the Nasdaq exchange under the ticker OMDA.

Founded in 2012, Omada reached a market capitalization of about $1.1 billion in its IPO - about the same level as in 2022, when the company raised $192 million in investment at a private valuation of more than a billion dollars.

The largest shareholders are U.S. Venture Partners, Andreessen Horowitz and FMR LLC (part of the Fidelity group), each holding between 9% and 10% of the company.

Omada offers virtual programs to support patients with chronic conditions including pre-diabetes, diabetes and hypertension. CEO Sean Duffy founded the company with Andrew DiMichele and Adrian James, who have since taken on other projects.

Omada's IPO comes amid a general recovery in the tech sector - following the successful IPOs of Circle and fintech company eToro. Online bank Chime Financial is expected to go public next week.

According to the prospectus, Omada's revenue in the first quarter of 2024 rose 57% to $55 million from $35.1 million a year earlier. For the full year 2024, revenue rose 38% to $169.8 million. Net loss in the first quarter narrowed to $9.4 million from $19 million.

Asia-Pacific markets mostly rose as investors assessed the phone call between Donald Trump and Xi Jinping, reports CNBC.

- Hong Kong's Hang Seng was losing 0.4 percent, while China's CSI 300 was down 0.1 percent.

- Japan's Nikkei 225 index was up 0.4 percent, while the Topix index was up 0.5 percent. 

- South Korea's Kospi added 1.49%, while the Kosdaq index of small-capitalization companies Kosdaq climbed 0.8%.

- Australia's S&P/ASX 200 index was down 0.2 percent.

«The US-China agreement to de-escalate tensions, as well as the recent phone conversation between Trump and Xi, show that both countries have an 'economic pain threshold,'» said Luke Yeaman, chief economist and head of global economic research at Commonwealth Bank. He said the conversation has taken the gloomiest scenarios off the table, but tensions remain high and further escalations are possible in the future. «In the longer term, both countries will seek greater economic independence,» Yaman wrote in a research note published Friday.

- U.S. index futures rose almost equally, by about 0.35%, in anticipation of a key jobs report that could clarify the health of the U.S. economy.

On the eve of the American markets closed with a decrease. The S&P 500 index fell amid a decline in Tesla shares. The broad market index lost 0.53% to close at 5939.30, the Nasdaq Composite fell 0.83% to 19,298.45. The Dow Jones Industrial Average lost 108 points, or 0.25%, to close at 42,319.74.