TheDrop Market Analysis, 03/24/25

Markets made outstanding progress on Monday as investors begin to buy back into the market in the biggest numbers in perhaps many months.

President Donald Trump in Mar-a-lago.

The S&P 500 gapped up by a large 1.8% margin, the Nasdaq surged by a larger 2.3%, and the Dow solidified the bull market with a 1.4% increase, the highest increase in point-quantity in several weeks. Additionally, the Russell 2000 gapped up by over 5 points (not percentage). The values of gold and the United States Dollar, by contrast, were stagnant.

Markets surged today as investors became much more pleased by the direction of foreign tariffs by the Trump administration. The president signaled possible intentions today of rolling back the same tariffs that he first implemented several weeks ago. This may include the 25% flat tariff on Canada and Mexico, the 10% rate on the People's Republic of China, and several additional "reciprocal tariffs" like the infamous 25% tariff on European aluminum and steel. By potentially rolling back some of these tariffs, the likelihood of subsequent trade wars ensuing dwindles, thus achieving a good balance between protecting domestic industry and maintaining the free trade status quo.

In addition, markets have been in corrective mode for about a week now. Due to the array of tariff news from the protectionist Trump commerce office and other economic offices, stocks trended downward, many times by large margins, which contributed to much lower levels. However, many of the levels that stocks are at right now are far behind the moving average on the month scale, meaning that they are presumably "undervalued." With cheaper stocks, markets will so-called "correct" upwards to account for higher demand by investors for allocated capital into those said cheaper stocks. Today is a symptom of that said phenomenon.

The Magnificent 7 dominated talk of investors as they made billions in dollars worth of improvements in just a mere few hours. Nvidia surged 3.2%, Apple rose 1.1%, Amazon rose 3.6%, Google rose 2.2%, and Tesla rose by an astonishing 11.9%, to name a few. Tesla specifically but also applicable by smaller variations, has finally made substantial recovery progress as these tickers were amongst the hardest hit of the post-Trump dip.

Other smaller tech stocks also outperformed expectations. Palantir, which previously fell from a high of $120, made substantial progress to that initial high, with a 6.4% rise, or an over $5.75 gain in its valuation per share. Ford, General Motors, and Boeing, three of the most vulnerable transportation vehicle producers to the recent wave of Trump tariffs, made landmark growth as their investors became more confident.