TheDrop Market Analysis, 04/15/25

Markets stagnated as tariff fears cool.

The S&P 500 index fell 0.2%, the Dow index fell 0.4%, and the Nasdaq index fell 0.1%. Quite surprisingly, the Russell 2000 index showed a glimmer of hope for markets with a 0.1% rise today. Gold strengthened.

Today marked the second day in a row in which investors did not concede to tariff threats. Although markets did fall, generally stocks performed much better today than they did during much of last week. In fact, some stocks managed to find ways to increase in share price today.

But, why did investors not concede despite economic news volatility? Although there were many signs of economic downturn reported like lower rates of tourism and projected unemployment increases, currently there has been no significant, damning evidence that could create immense fear for investors. Many of the previously stated news has resulted to speculation, not assessments through a factual basis. This is not to say that the economic environment was bullish today, because it was far from it; generally news aligned more negatively.

Of the Mag. 7, two stocks managed to make surprising rises in share price: Nvidia (1.4%) and Tesla (0.7%). However, keep in mind that these stocks are very undervalued, so correction is inevitable; however, they did not fall, so that is a decent sign for the market.