TheDrop Market Analysis, 06/09/25
- Alexangel Ventura
- 3 hours ago
- 2 min read
Markets rose as optimism for the ceasing of trade wars rises.
The S&P 500 rose 0.09%, the Dow stagnated, the Nasdaq rose 0.31%, the VIX rose 2.33%, and the Russell 2000 rose 0.57%. Generally, investors bought in to stocks as they feel more optimistic regarding the future of the economy, at least in the short-term.
As trade talks between the United States and China continued, optimism grew as Washington and Beijing committed to their first call since the beginning of the trade war. In the call, both sides expressed their willingness to end the war through mutual reductions in tariff rates, to "correct the course." Contrary to what he advocated for right at the start of his presidency, Trump now feels obligatory to cut tariffs, as he faces unpopularity by the American people as well as warning signs of increased tariffs, from poorer consumer confidence to rising prices to steady interest rates (per the Fed).
Some of the biggest winners today were the Magnificent 7, of whom 5 were bullish. Apple and Meta were the exceptions with 1.21% and 0.52% reductions, respectively. Regarding Apple, investors did not particularly enjoy their latest announcement regarding refinements to iPad and software. Nevertheless, the remainder of the Mag. 7 were successful, particularly Tesla which has begun correction from its dip from last week. Google has also shown some signs of correction, which has been a long time in the making since its first collapse due to the federal government deeming it a "monopoly," and other subsequent scandals.
As expected, Trump Media surged because of natural correction. SMCI also made a significant boost in share price after it signed a $20 billion contract with a Saudi Arabian data center firm. Nvidia did rise too, but not by as much, signaling concern in the AI market that it may face heavy competition from SMCI, Broadcom, and others.
Not many stocks have underwent severe bearish behavior today, but Warner Bros. Discovery, Inc. faced a heavy setback after it announced its streaming and media split, sending the stock 2.95% cheaper, with minimal recovery in after hours.
