TheDrop Market Analysis, 02/04/25
- Alexangel Ventura
- Feb 4
- 1 min read
Markets made a substantial recovery as a correction seems likely.
The S&P rose 0.7%, the Dow rose 0.3%, and the Nasdaq skyrocketed 1.4%. Additionally, the Russell made very substantial growth with a 1.4% increase, reflecting on the strong small-medium business sentiments of the day.
Overall, markets were bullish today due to a variety of factors. As a result of the Trump-Canada-Mexico trade war, stocks on Monday plummeted to recent lows, thus provoking a strong correction today. Also, the quick deals fostered with the U.S. and its trade partners over the tariffs resulted in the easing of investor fears.
Amongst the biggest winners of the day was Palantir, an emerging AI company which skyrocketed 24% as a result of a very positive earnings report. the company has begun to develop close ties with the U.S. government for defensive reasons, and may be a key recipient of assistance by the government's Stargate.
Riding Palantir's success was the rest of the Nasdaq, which included tickers like SoundHound, Apple, Tesla, Amazon, and Microsoft. Nvidia also made a small recovery, however it will lave a long way to go before it makes up its $40+ loss in share price from DeepSeek's ascension last week.
Spotify also surged due to an earnings report beating expectations. Chinese stocks like XPeng and PDD Holdings made substantial growth in share price as a result of China's swift retaliatory response to the Trump tariffs on the nation's exported goods.
Even the Yuan strengthened throughout the day, contrasting with the USD's decrease from a rally yesterday.
