TheDrop Market Analysis, 03/06/25

Markets sank significantly as investors panicked regarding Trump's trade policy.

The S&P index sank 1.8%, the Dow fell by nearly 1%, and the Nasdaq 2.6%; the Russell further solidified this market-wide recession, falling by a whopping 1.6%. The value of both gold and the USD were stagnant.

Due to the recent volatility of the economy regarding tariffs on Canada, Mexico, and others, investors sold out of their shares in the stock market once again, contributing to this market-wide decline. Many stocks reached near all-time lows for recent months, including the largest players in the industry.

Nvidia fell beyond 5.7%, reflecting on AI investors' fears being exacerbated by the emergence of higher tariff duties rates within the United States. Other large stocks like Tesla, CrowdStrike, Apple, Amazon, and Microsoft also fell to record lows.

Surprisingly, the emerging chipmaking company Broadcom surged by over 16% in afterhours Thursday following its Q1 earnings report, that showed that the company was far exceeding expectations. It has been hailed as the next biggest competitor to Nvidia, a company that previously exerted its dominance over the entire chipmaking industry.