TheDrop Market Analysis, 04/09/25

Markets skyrocketed as tariff news excited investors.

The S&P 500 went up 9.5%, the Nasdaq went up 12.1%, and the Dow went up 7.9%. In addition, the Russell 2000 index went up by a respectable 8.7%. Both the values of gold and the U.S. dollar have strengthened today.

Investors rushed to buy the dip as President Donald Trump announced a 90-day delay on all reciprocal tariffs that he implemented on "Liberation Day." However, the president has kept his tariff duties stiffly on the People's Republic of China, and went as far as to raise their tariff rate to 125%, up from the 104% just yesterday. As of now, China's tariffs have been the only "reciprocal tariff" in effect currently.

Also, investors were partially optimistic about the next CPI report. This will include how inflation and prices changed in the month of March, well before many of Trump's tariffs were implemented. Expect a minor decrease in inflation and consumer prices.

Meanwhile, the Republican-dominated House of Representatives made some changes to fiscal policy which attracted the attention of investors. Firstly, they overturned a rule established by President Joe Biden limiting bank overdrafting fees to $5. Secondly, some House Republicans have proposed new norms in Congress allowing for tariffs to be implemented much more easily.

The Magnificent 7 most definitely had a very good "field day" today. Nvidia rose 18.7%, Google rose 9.9%, Amazon rose 12%, Apple rose 15.3%, Tesla rose 22.7%, Microsoft rose 10.1%, and Meta rose 14.8%. This contributed to the Nasdaq's stellar performance today.

Other tech stocks did well today. Palantir rose 19%, Oracle rose 12.2%, and Monolithic Power Systems rose 23.4%.

In the midst of the bull market, Newsmax managed to blunder; it fell by 11.5%, possibly because the stock was extremely overvalued and needed correction.

So, today's results were very good for all investors, especially those who suffered from tariff-era bear markets, however it is uncertain if this momentum could continue into the rest of the week.