TheDrop Market Analysis, 02/10/25
- Alexangel Ventura
- a few seconds ago
- 2 min read
Markets fell slightly as investors react to a poor retail data report and heavy repositioning among future Fed rate cut betters following a large wave of economic reports like the CPI and PPI.
The S&P 500 index fell 0.4%, right in the middle between the Dow Jones Industrial Average's virtually constant result (0.05% growth) and the Nasdaq Composite's 0.6% decline (even larger than the aforementioned S&P). The Russell 2000 also fell roughly in the center in terms of performance, with the small ticker-heavy index falling by under 0.2%. The VIX rose by just under 2% as stocks fell by larger magnitudes in the later half of the day, even despite making some gains in the early morning.
Investor confidence dwindled as a new report today showed that the overall demand for consumer goods by American shoppers was below expectations, with some investors interpreting this as being a possible trigger for a small interest rate cut in the near future, though probabilities remain low. Some stocks like Coca Cola had mixed earnings reports, and similarly large companies like Moderna, Hilton, Robinhood, Ford, and Lyft all have earnings reports this week, a very consequential week for retail stocks.
Asians stocks performed very strongly, with the SSE Composite rising 0.13%, the Nikkei rising 2.28%, and the Hang Seng rising 0.58%. European stocks had very mixed results however, with the British FTSE 100 falling 0.31%, the German DAX P falling 0.11%, and the French CAC 40 rising by a subtle 0.06%.
Crypto weakened again as investors become discouraged by weakening currency values across the board, with Bitcoin falling 2.82%, XRP falling 3.92%, and Ethereum falling 5.07%. Gold & silver commodities, along with bond markets, also fell.
Big Tech stocks like Nvidia, Google, Amazon, and Meta all fell by significant margins as investors retreat from the very pessimistic economic environment. Though, Tesla made significant gains (1.92%) as it invests heavily into its new Tesla insurance program, and its share price recovers from previous lows.
