TheDrop Market Analysis, 04/01/25
- Alexangel Ventura
- 2 days ago
- 2 min read
Markets generally reacted positively to breaking news from the Trump administration.
The S&P 500 index rose 0.4%, the Nasdaq index rose by a larger 0.9%, while the Dow stagnated with a 0.03% dip. The value of the U.S. dollar fell for the second consecutive day, while the value of gold also fell, albeit by a much smaller margin. Crude prices rose.
Investors today reacted generally very positively to a flurry of breaking news. First of all, President Donald Trump is expected to fully announce and roll out his full slate of reciprocal tariffs in a plan that he has dubbed "Liberation Day." Although merely a subjective title, it reflects the general sense of optimism that the administration is trying to convey to investors and consumers alike, many of whom have been alienated by steep tariffs and their many negative implications. This has come amid the probability of a recession rising, while consumer confidence reaching its lowest levels in months. Yet, it is still unknown whether the nation will implement specific targeted tariffs on foreign goods, or if it will concede to the president's ambitions by creating blanket, flat tariff rates all across the board.
Meanwhile, on a negative note for the economic performance of the first 100 days of the Trump administration, newly released data reports show that job openings have declined in February and March, with February constituted record four-year lows never before seen since the later days of the COVID-19 pandemic. The Bureau of Labor Statistics showed that a mere 7.57 million jobs were open. This could mean that more people are becoming employed, or that job creation has been weaker, possibly serving in contrary to the goal of high tariffs which is protection of domestic labor.
The Magnificent 7 stocks performed valiantly to produce a solid recovery effort. Nvidia rose 1.6%, Tesla rose 3.6%, Amazon rose 1%, Google rose 1.7%, and Microsoft rose 1.8%. Newsmax continued its boom with an over 100% surge, reaching a peak and stabilizing in the post-market. Lucid also saw a magnificent surge as it beats out many of its fellow EV competitors with a 4.6% rise in share price.
