TheDrop Market Analysis, 07/01/25
- Alexangel Ventura
- Jul 1
- 1 min read
Markets generally rose or stagnated as Trump's tax overhaul passes through a tight Senate vote.
The S&P 500 fell 0.11% and the Nasdaq index fell 0.82%. Meanwhile, the Dow finished very strong with its solid 0.91% rise in share price. The Russell once again broke market norms, rising beyond 1% in stunning fashion, showing investors just how dominant smaller business performed today in comparison to big businesses, particularly in technology.
Generally, investors bought into many stocks in response to the pivotal Senate vote today confirming Trump's tax overhaul, delivering trillions in tax breaks to high earners while cutting Medicare benefits. Many investors interpreted this as good for business, so they bought in using their capital today. Meanwhile, others argued that this would increase the deficit and then debt and ultimately inflation, so they sold out of other stocks.
The Magnificent Seven reversed some of its gains from yesterday and last week. Among the greatest losers in the elite collection include Tesla (5.3%) and Nvidia (3%). Meta and Microsoft also had moderate declines in share price on Tuesday.
UnitedHealth rose by nearly 5% as it rode the tax cut dream. Other similar non-tech stocks also rose, including Amgen, Nike, and Sherwin-Williams.
Target shares also rose by a similar 5.3% as it used the tax bill's passage as a mode of correction, as it is currently over 100% below its all-time high of just over $250 per share.
