TheDrop Market Analysis, 02/05/25
- Alexangel Ventura
- Feb 5
- 1 min read
Markets made a huge selloff in the morning, but bounced back over the course of the day as Nvidia leads a strong recovery.
The stock market generally grew very marginally, with the Dow (futures) up 0.1% as of 9:15 PM. The S&P and Nasdaq were both underwater in the early hours of the day, but made up for their losses as a result of a strong market-wide recovery from previous lows due to the introduction of DeepSeek AI.
Google sank today by nearly 7%, which marked one of its swiftest changes in share price in years. Previously a very stable and reliable stock, the company's newfound ability to plummet when necessary shows that it perhaps has some weaknesses in terms of earnings and reputation. Investors sold off the Big Tech company today due to reported losses in the company's AI-powered systems.
Yet, many AI stocks actually performed quite well today. Nvidia made a strong post-dip recovery of 5.2%, reaching a share price of $124.83. SoundHound, CrowdStrike, and Oracle also made decent recoveries, defying market sentiments in other areas.
On the contrary, some of the largest tickers in the Nasdaq fell as a result of the fallout from Google's disastrous earnings report. Among these large companies include Apple, Tesla, and Amazon, to name a few.
Palantir's range of support fell after reaching new highs earlier this week. AMD also made substantial losses from its data center business.
The value of gold and the USD fell as tariff threats become less likely.
