TheDrop Market Analysis, 05/30/25
- Alexangel Ventura
- May 30
- 1 min read
Markets sank ahead of stalled trade negotiations between the United States and China.
The S&P 500 sank 0.01%, the Dow rose 0.13%, and the Nasdaq fell 0.32%. In addition, the smaller business-heavy Russell 2000 index fell by a significant 0.41%. The value of gold weakened, while the value of the U.S. dollar strengthened marginally. The CBOE Volatility Fund fell 3.18%.
Markets generally plummeted today because of failed trade negotiations between the U.S. and China. Trump, who initially waged a full-scale trade war with China by demanding over 100% in tariff increases, now attempted to provoke a decrease in Chinese tariffs on American goods through diplomatic talks. China, however, proved resilient in their efforts of combating American diplomatic pressure, and refused to give up their lofty retaliatory tariffs. Trump took to Truth Social, claiming that Chinese leader Xi Jinping violated international trade agreements.
Most of the Mag. 7 fell, with the exceptions of Meta and Apple. Meanwhile, Tesla led the decline although Elon Musk urged shareholders to trust Tesla stock, claiming that he will now put more focus into the company after leaving the Department of Government Efficiency.
Palantir saw a major boom in share price on Friday, surging 7% after signing a successful contract with the U.S. government. Palantir has recently aimed for providing military equipment and technology to the Pentagon in agreement with Washington.
Regeneron continued its long streak of bearishness, falling by 19% as its clinical trials fail for a specific substance.
