TheDrop Market Analysis, 08/01/25

Markets sank by large margins, ending its weeks-long rally, just through the release of a below-average jobs report.

A "NOT HIRING" sign.

The S&P 500 composite fell 1.6%, the Dow 30 composite fell 1.23%, and the Nasdaq composite fell 2.24%. The Russell 2000 composite, the largest medium-business-heavy index listed on the stock market, fell by a similarly detrimental 2.03%.

The price of crude oil surprisingly fell, likely due to the price of oil being overvalued due to its recent rally from the Trump-Putin hostilities. But, with geopolitical tensions only being exacerbated by Putin's threatening rhetoric and Trump's deployment of two nuclear submarines outside Russia, it is certain that oil will continue to rally.

Gold strengthened by 2% and silver strengthened 1%. Bitcoin, XRP, and other cryptocurrencies weaken as they enter corrective territory.

The 10-yr bond rate took a 3.2% hit as a result of general market sentiments following July's job report indicating a rising unemployment rate and weakening job growth, likely due to tariff-related inflation pressures subsequently forcing companies to lay off employees en masse, combined with rapid layoffs in the federal government due to spending cuts.

Nvidia retreated from recent all-time highs with its 2.33% fall. Even Google, the AI revolution-leader earlier this week, fell 1.44%.