TheDrop Market Analysis, 03/04/25

Markets sank significantly to start the week, ahead of President Trump's address to Congress.

The S&P 500 sank 1.2%, the Nasdaq sank 0.4%, and the Dow plummeted 1.6%. Furthermore, the Russell index sank 1.1%, and the value of the USD plummeted by nearly 3%. Even the value of bitcoin reached a new low of nearly $80,000, breaking its peak highs in the $100,000s.

Investors today and Monday sold out of the stock market due to the wave of emotion in response to President Trump's economic policy. Initially having scheduled many of his tariffs in April, the president with Secretary of Commerce Howard Lutnick implemented steep 25% tariffs on Canada and Mexico, affecting the prices of most goods. Although the president was interested in compromise including possible concessions from both countries to reduce tariffs, investors were not having it, selling off in droves ahead of the president's speech to Congress and the nation.

Nvidia nearly fell below $110 per share, but rebounded midday to around $115; however, this is significantly lower from the $140 less than two weeks ago. Tesla plummeted nearly 5% as the company became in the spotlight of tariff policy; among other losers included SoundHound, Trump Media, Amazon, and Apple.

Yet, some companies managed to make recoveries despite challenges in market sentiment. Google rose beyond $170, MicroStrategy surged by nearly 10% after the White House announced a crypto reserve, and Palantir strived for recovery with a 1.2% increase.