TheDrop Market Analysis, 07/31/25

Stocks have fallen Thursday as investors await the midnight tariff deadline set by the Trump administration.

U.S. President Donald Trump (left) and Canadian Prime Minister Mark Carney (right).

The S&P 500 composite fell 0.37%, the Dow 30 composite fell 0.74%, the Russell 2000 composite fell 0.93%, and the Nasdaq composite stagnated over the course of the day. The Nikkei ETF rose 1.02% while the British FTSE 100 ETF fell 0.05%.

Markets fell ahead of the stiff August 1st deadline set by President Trump for a trade deal with Canada, with no formal agreement being set as of now. If this continues into the last few hours of Thursday, Canada could be expected to suffer a 35% tariff. Meanwhile, other countries such as Japan, South Korea, and the European Union have been able to easily negotiate with the American trade baron.

While the price of crude oil in average rose 0.2%, gold contracted by a similar 0.18%. Silver strengthened by 0.24%, while Bitcoin fell by 1.84%.

The 10-year bond rate fell 0.37% as investors worry of the economic impacts of the Canadian tariffs, which are expected to be very inflationary.

But, contrary to the general sentiments of the market, Apple's earnings report dropped today showing a large overperformance similar to Google's earlier this week, setting the stock surging in the after hours of market close. Specifically the latest models of the Apple iPhone have contributed to the company's overperformance, facilitated by the integration of ChatGPT to each new respective model.

Meanwhile, while Amazon did beat in earnings today, an underperformance in its cloud service caused investors to retreat from the stock in after hours.