TheDrop Market Analysis, 07/02/25

Markets flourished yet again as new trade deals were reached.

President Donald J. Trump.

The S&P 500 index rose 0.47% and the Nasdaq rose 0.94%, reaching all-time highs once again. Even the small-business heavy Russell rose by an incredible 1.31% as investors poured into many industries benefited by recent news. However, the Dow 30 stagnated, being up early in the day and then losing its progress over the course of the afternoon.

Investors bought into stocks today because of recent progress made internationally towards free trade. President Trump successfully reached a trade settlement with Vietnam to reduce tariff rates in return for lower trade barriers with the United States on the other side. The agreement with Vietnam, being a key exporter to the United States, created optimism for investors previously repelled by Trump's trade warfare.

The Magnificent Seven mostly gained, with outlier only falling marginally. Tesla rose by nearly 5% as its earnings report beat expectations in terms of total vehicle production. Nvidia reached yet another all-time high; Google and Apple also rose.

Constellation Brands (STZ) also rose sharply after a very positive reception for its earnings report.