TheDrop Market Analysis, 02/21/25

Markets initiated a mass selloff as investors worry about the health of the U.S. economy in the near future.

The S&P 500 index fell by over 1.7%, the Dow fell by a similar 1.69%, and the Nasdaq fell by a considerable 2.2%. The Russell 2000, which usually deviates away from the pack, finally joined its index fund peers by falling by nearly 3%. Even the value of oil and gold fell; however, in quite the contrary, the USD strengthened in value as tariffs are still underway.

Investors today reacted strongly to a specific report by Walmart, typically a trusted business which many times points out clear trends in the financial world. The company stated on Thursday that its 2025 outlook will be far from optimal, lowering price estimates.

Additionally, the University of Michigan's Ross School of Business, among the most respected in the nation, showed signs of failure in terms of confidence in the economy, falling to a recent low of 64.7%.

Furthermore, many stocks reacted to the selloff of UnitedHealth, as a report came out showing that the Trump administration's justice system will target its medicare billing procedures. Other companies, fearing a similar fate in the ever-growing Trump presence in the economy, sold off alongside it.

Trump once again touted more "reciprocal" tariffs did not help put out the flames.

Among today's losers in the Nasdaq included Nvidia, Amazon, and Tesla, all companies which could be the prime targets of Trump's tariffs abroad. Palantir, against all odds, fell by well over 20% in the past few days after the U.S. Department of Defense led by Pete Hegseth announced reductions in military spending. Palantir being a big beneficiary and contractor with the military has continued to sell off today.

Meanwhile, some foreign stocks like PDD holdings made shocking growth as they profit from America's losses.