TheDrop Market Analysis, 01/31/25

Markets sank following news of higher tariffs by the Trump administration.

The S&P 500 is down 0.5%, the Nasdaq fell 0.3%, and the Dow fell 0.8%. Additionally, the small business-dominated Russell fell 0.9%. All kinds of investors, both in large businesses and small businesses, sold off en masse following news of Trump's increased tariff rates. However, in the morning some tech stocks received a minor stock bump as Nvidia CEO Jensen Huang's meeting with Trump was removed from secrecy.

Out of all stocks today, Big Tech managed to perform the best in the center of a sea of red. The Nasdaq not only fell by the smallest amount out of all four index funds, but some isolated stocks even grew today, especially those which promised to work with the Trump administration in building facilities in America. Google, a key player in the optimism surrounding the domestic economy and jobs development, rose 1.5%; Tesla, which will work closely with the Trump administration, rose by over 1%; even Amazon, which produced many goods overseas, rose 1.3% as Jeff Bezos made concessions to the Trump administration guaranteeing funding towards domestic facilities.

However, generally most stocks plummeted. The most hard-hit ones were usually overseas companies which could be impacted by the tariffs, like Canada's Royal Bank and Tilray, Mexico's Banorte, and China's PDD.

The value of gold fell following a surge yesterday, while the USD held strong.