TheDrop Market Analysis, 07/03/25

Markets surged after the passage of the "BBB" in the House of Representatives, as well as a very outstanding jobs report.

Speaker of the House of Representatives Mike Johnson.

The S&P 500 index rose 0.83%, the Dow 30 index rose 0.77%, and the Nasdaq tech-heavy index rose 1.02%. The small-business-heavy Russell 2000 rose by a similar 1.02%, solidifying today's remarkably bullish performance once again market-wide. Meanwhile, the Vix volatility index fell 1.56%.

The value of Bitcoin and gold stagnated while the USD strengthened, reflecting positive attitudes about the U.S. economy specifically.

Investors praised the passage of the "Big, Beautiful Bill" which is set to cut trillions in tax for all groups of Americans, especially top corporations which investors profit from most. In fact, due to the increased amount of capital flow following the tax breaks, a more business-friendly environment would become prominent, ushering in a new wave of investor optimism for the future of American big business. This was why most stocks performed very outstandingly today.

In addition, a jobs report from the Labor Department showed a vast overperformance compared to investors' expectations, with the economy adding roughly 147,000 jobs compared to what investors anticipated, just over 100,000. While economists believed that the unemployment rate would rise to 4.3%, instead it fell 4.1%.

All Magnificent Seven companies grew in share price with the exception of Tesla, which fell by a mere 0.1%. Nvidia reached a near all-time of nearly $160 per share.