TheDrop Market Analysis, 07/09/25

Markets rose again as investors shook off tariff fears and signs of a July rate cut resurface.

CEO of X Linda Yaccarino, who resigned on Wednesday.

The S&P 500 index rose 0.61%, the Dow 30 index rose 0.49%, the Nasdaq index rose 0.94%, and the Russell 2000 index rose by a respectable 1.07%. Meanwhile, the VIX volatility index fell, and the valuation of gold strengthened.

Although tariff worries shook the market earlier this week, today's gains showed that investors' fears are dwindling; however, this does not guarantee that tariffs will continue to play a negative role in the stock market, as President Trump sporadically and unpredictably announces new tariff rates every day, with today holding a 50% tariff on Brazil, a key supplier of raw materials to the United States.

Also, some hope emerged from Fed minutes today, which showed a large opposition to Jerome Powell's "wait and see" approach with interest rate cuts, led by Fed Gov. Christopher Waller, but others followed Powell and believed that the continued inflationary risk of tariffs warrants little to no change in the interest rate.

While most of the Mag. 7 saw great increases in share price, especially Nvidia which made yet another all-time high of $162.88, Tesla fell 0.65% as its longtime CEO Linda Yaccarino announced her unexpected resignation. "After two incredible years, I’ve decided to step down as CEO of X," Yaccarino posted on X. "When @elonmusk and I first spoke of his vision for X, I knew it would be the opportunity of a lifetime to carry out the extraordinary mission of this company," she wrote. "I’m immensely grateful to him for entrusting me with the responsibility of protecting free speech, turning the company around, and transforming X into the Everything App."

While the reason for her departure is unknown, some speculated that she wanted to avoid pressure from Elon Musk's recent political involvement following the establishment of the American Party. Also, her company was criticized by the Wall Street Journal about a month ago regarding ad deals with Verizon, Ralph Lauren, and others.

Bitcoin strengthened today, rebounding following yesterday's fall, reaching an all-time high as stablecoin company Coinbase shares rise.