TheDrop Market Analysis, 04/14/25

Markets have surged for the second time in the past week as investors continue to adapt to tariff news.

A group of cars parked next to each other in Chile.

The S&P 500 index rose 0.8%, the Dow popped by 0.8%, the Nasdaq technology index fund rose by a respectable 0.6%, and the small-business fund Russell 2000 rose by an outstanding 1.1%. In addition, the value of gold, Bitcoin, Ethereum, and the U.S. dollar strengthened by very significant margins as forex traders look to capitalize on a better financial environment to make currency exchanges.

Investors, currency traders, and bondsmen alike have had a field day in today's economic environment because of updates to tariff news. President Donald Trump, after garnering a significant amount of unpopularity because of the extremity of the scale of his tariff policies, decided to take a scale back today. Instead of leveling up his reciprocal tariff rates like expected, he instead considered possible tariff exemptions on hard-hit industries like automobiles. This is to say that the president has also considered raising tariffs for certain trade goods, as well as using them as a bargaining tool to leverage strong responses to the initial tariffs like from China and the European Union.

In addition, stocks followed the trend of Apple's magnificent rise. Apple surged 2.2% following Trump's decision to exempt electronics from his tariff policies. Also, some investors have cited sympathy for the company as it has became the target of probing from the government over certain law violations.

Like Apple, much of the Magnificent 7 also went up. Tesla went up, and Google rose 1.3%. However, the rest of the Mag. 7 fell as tariff threats plague them, like Nvidia and Amazon. Palantir, a company that is emerging in the tech market, outperformed the Mag. 7 with its over 4% surge.