TheDrop Market Analysis, 05/07/25
- Alexangel Ventura
- May 7
- 1 min read
Markets rose in reaction to a key Fed decision and cooling trade tensions.
The Dow index rose 0.7% while the Nasdaq, a technology-heavy index fund, rose by 0.4%.
Investors generally bought in for two reasons. First was the Fed's decision to hold rates, a great relief for investors who generally believed that the Fed would decide to increase rates due to creeping inflation. Second was the cooling of tensions between the United States and China as trade negotiations resume.
Most stocks performed well, but Google served as an outlier due to its below-average earnings report, subsequently falling 7.5%.
The values of both gold and the U.S. dollar weakened as decreased tariff rates (as high tariff rates allowed their valuations to surge) now put them under pressure.
