TheDrop Market Analysis, 02/11/25

Markets generally stayed neutral as investors react to inflation data and weigh in rate cut possibilities.

The S&P 500 nearly had very little movement throughout the day, and the Dow only increased marginally by 0.3%. Meanwhile, both the Nasdaq composite and the Russell fell significantly, by 0.4% and 0.5%, respectively.

Investors today reacted unfavorably to Fed Chair Jerome Powell's announcement of the government agency's willingness to take a more laid-back approach to taking rate cuts in the near future, with rate cuts virtually out of the question for the time being. Investors, who usually favor big rate cuts like the one in September of last year, sold off in droves today.

However, some investors actually bought stock today as inflation data looms. If positive, markets could shoot up, but it remains uncertain if this will indeed occur in the first place.

With the possible exception of Apple (which rose 2.2%), most other Big Tech stocks sold off; this includes Nvidia (-0.6%), Tesla (-6.3%), Amazon (-0.2%), and Microsoft (-0.2%). Investors strategically sold off their stakes in large companies, which are must vulnerable to the outcomes of the Trump tariffs, while allocating their capital elsewhere.

In fact, equities shifted today toward other big companies, some tech-related. This included Coca-Cola, Intel, Shopify, and CrowdStrike. Banking companies performed in-line with expectations today.

The value of gold fell marginally by 0.21%, and the USD fell very marginally as well.