TheDrop Market Analysis, 03/11/25

Markets sank as investors continue to weigh in on the state of the economy.

Donald Trump and Jerome Powell, Fed Chair.

The S&P 500 sank 0.8%, the Dow fell 1.1%, and the Nasdaq sank 0.2%. Meanwhile, the Russell made a substantial recovery, rising 0.2%, thus breaking from the crowd by showing some signs of reversal amid economic peril. Overall, unfortunately, it is evident that the stock market is continuing to plummet.

Investors wanted out for the market today for a number of reasons, most particularly is Trump's tariffs. Continuing from yesterday's momentum, the selloff was contributed by investors fearing about the future state of the economy as tariffs have an immediate negative impact. Prices have risen, and our trade partners announced steep tariffs on American goods in retaliation. With the combination of these factors, investors sold off, and even predicted a recession. President Trump, meanwhile, remains confident that his tariff policy will not create a recession, although such position is speculative.

Also, investors left the market the midst of the release of a key inflation report, CPI, which will be released this week. They betted that inflation would've risen due to tariffs, so they preemptively sold off so that they would not face the risk of declining share prices.

Some companies, surprisingly, made small recoveries. Nvidia rose 1.7%, Tesla rose 3.8%, and Amazon rose 1.1%, respectively. Many of these stocks, however, are merely correcting, as they were the hardest hit from yesterday's bear market catastrophe.