TheDrop Market Analysis, 03/10/25

Markets reached their lowest levels in recent history as investors sell of in the largest wave since the arrival of DeepSeek nearly 2 months ago.

Tesla CEO Elon Musk, who has played a key role in DOGE.

Markets sank, overall, my very significant margins. The Nasdaq plummeted fell by nearly 4%, the S&P 500 index fell 2.7%, and the Dow fell 2.1%. The Russell 2000 composite did not fair any better than the remainder, with a 2.7% decrease in share price. The value of gold and the USD stagnated.

Investors from all corners of the market sold off in masse as confidence in the economy dwindles. A recent survey released by the NY Fed showed that there are been a worrying spike in consumer fears of the economy in recent weeks due to the policy proposals of the Trump administration. The combination of disapproval over tariffs on nearly all nations across the globe, as well as many of the threats that DOGE (Department of Government Efficiency) is having on many government programs like social security and the Department of Education, Americans no longer trust their government. Hypocritically, they voted for major policy changes to occur, and major policy changes, good or bad, they will receive.

Additionally, some other negative things occurred over the course of the day. Crypto, from bitcoin to the infamous Ethereum (which plummeted by double digits), fell to record low levels as investors pour their money out. Several earnings reports came out which highlight the economic effectiveness of the Trump administration; many of which have reported very negative data. Delta, for example, reported its worst earnings report in ages as the company now shifts its focus on adapting to the evermore dangerous political and economic environment.

In fact, some analysts have even warned that a recession is coming. Although there is not enough evidence that a recession is certain, it is in the realm of possibility, and given this many investors did not want to take the risk of holding their equity.

Tesla sank by a whopping 15%; other magnificent seven stocks like Nvidia (5.1%), Apple (4.9%), Amazon (2.4%), and Microsoft (3.3%) also followed suit. Oracle fell by a combined 7% in both the stock trading day and in after hours in reaction to an underwhelming earnings report. The only glimmer of hope for the market today was General Motors, which rose by just over 1% in reaction to President Trump's exemption of automobiles from his tariff plan (for now) and the collapse of its rival, Tesla.

Although the market may continue to collapse, it might be the perfect opportunity to buy into the dip. Some stocks like Nvidia ($105) have reached new lows that have not been reached in years. The growth opportunity for these stocks could be significant.