TheDrop Market Analysis, 07/15/25
- Alexangel Ventura
- Jul 15
- 2 min read
Markets sank on Tuesday as investors weighed in June's Consumer Price Index report from the Bureau of Labor Statistics, as well as Trump's tariff threats.
The S&P 500 index fell 0.4%, the Dow 30 index fell 0.98%, and the Russell 2000 index fell by just under 2%. Meanwhile, tech stocks listed on the Nasdaq index managed to squeeze out a minor gain of a meager 0.18% in a sea of bears. Currency markets fell, especially gold (0.86% decline) and silver (1.95% decline), while bond markets rose. Many ETFs struggled to make gains with the exception of the Japanese Nikkei 225, which saw a 0.55% increase.
Markets fell today after the release of June's CPI today at 8:30 AM, which showed accelerating inflation increases as well as dramatically sharp rises in the prices of energy. Investors interpreted this two ways: one, that the Fed will most likely not cut rates in July as inflation has yet to cool down; two, the effects of Trump's tariffs are finally breaking in, increasing the likelihood that companies will now need to make consumers pay the price after months of shielding them from tariff-induced inflation.
Jamie Dimon, CEO of JP Morgan, gained the spotlight for his criticism of Trump's tariff policy while raising concern of an unstable economy. He also supported the Fed's independence as "absolutely critical" as Trump considers successors to Fed chair Jerome Powell, who has contradicted with Trump on interest rate policy.
The Magnificent Seven were truly 'magnificent' today in their performance in the markets, with all but Tesla and Meta growing in share price. Nvidia made yet another all-time high today with a newfound share price of roughly $170.70. Microsoft also made substantial increases in share price.
