TheDrop Market Analysis, 03/05/25
- Alexangel Ventura
- Mar 5
- 1 min read
Markets surged on Wednesday as President Donald Trump's tariff policy remains in the spotlight.
The S&P 500 rose 1.1%, the Dow rose 1.1%, and the Nasdaq rose 1.5%. Additionally, the Russell 2000 index rose by slightly over 2%, and the value of gold rose. The value of the USD, meanwhile, continued its decline in value which started late last week.
Although the president did implement a flat 25% tariff on goods from Canada and Mexico, today he paused auto tariffs, which would hurt Americans heavily. The U.S. relies on foreign automobile, many of which are key taxpayers in the U.S. economy, as they operate many subsidiaries and acquisitions in the nation. Some of these stocks, like General Motors (an American company with a strong presence in Mexico), surged as a result.
Big Tech made a magnificent (no pun intended) recovery throughout the day as many investors, small and large, buy from yesterday's dip. Nvidia rose 1.1%, Tesla rose 2.6%, Amazon rose 2.2%, and Microsoft rose 3.2%, to name a few. All of which contributed to the Nasdaq's strong performance with a 1.5% gain.
CrowdStrike plummeted beyond 6% as the company reported underwhelming earnings on a report Tuesday evening.
Fortunately, mortgage rates fell in recent weeks to some of the lowest levels in 30 years, according to data from Zillow. Investors, especially in the real estate industry, popped in to capitalize on the favorable environment for consumers, as demand rises.
