TheDrop Market Analysis, 04/03/25

Markets dipped to record low levels as a result of Trump's "Liberation Day."

President Donald Trump.

In a complete and total bust, markets sank in record magnitudes. The S&P 500 sank by 4.8%, the Nasdaq plummeted by nearly 6%, and the Dow fell by 4%. Small business was devastated by today's stock market performance, with the Russell 2000 index sinking by 6.6%. Quite the contrary to the nature of tariff policies, the value of the USD sank to record low levels.

Investors were in a complete panic today as a result of President Trump's so-called "Liberation Day." Investors deemed this day, with some merit, not as a day of liberation but rather as a day of radical shifting of fiscal policies which could drastically alter the economy at large for a long duration of time. The president of the United States implemented "reciprocal tariffs" on not only America's strategic enemies like China and Cuba, but also on our allies and even emerging markets which pose no harm to the United States, like the United Kingdom, Cambodia, or Madagascar. The president cited high "tariff" rates by those countries on American goods, which has been proven to be false because these inflated values take into account currency exchanges and trade barriers which their governments may have very little control over.

Nevertheless, Trump deems these high "tariffs" as an intentional weaponization of fiscal authority to weaken the United States' solid grip on global trade and shift manufacturing/production to other nations like China or India. Investors did not believe this, and as a result they rushed to their equity to quickly "sell" in record fashion. In fact, they sold in the highest numbers since the first stock market dip of the COVID-19 pandemic, a very dangerous precedent for the quite youthful Trump administration. The president has stated that the rolling out of these tariffs has gone successfully thus far, but we will not yet know what is the true impact of these tariffs for at least several months.

The magnificent 7 stocks performed particularly bad today. Nvidia sank 7.8% in share price, reaching nearly $100 per share, a feat not seen in several years. In addition, Google fell 3.9%, Amazon fell by 9%, Apple fell by 9.3%, Tesla fell by 5.5%, and Microsoft fell by 2.4%. Tech stocks outside of these 7 tickers, from Palantir to Lucid, also made dramatic dips.

Intel managed to outperform the market once again with a 2.1% rise. It is clear that while the rest of the market fails, Intel always has a way of making gains.