TheDrop Market Analysis, 08/07/25

Markets largely sank as Trump's massive wave of tariffs finally came into fruition on dozens of trading partners, but was affected by a new executive order.

U.S. President Donald J. Trump.

Most composite indexes performed abysmally, with the S&P 500 index falling 0.08%, the Dow 30 index falling 0.51%, and the Russell 2000 index falling 0.3%. Meanwhile, the tech-heavy Nasdaq composite actually rose slightly 0.35%, a new record high. The VIX volatility index fell 1.19%.

As for ETFs, the British tech-heavy FTSE 100 fell 0.69% while the German DAX rose 1.12%; the Nikkei 225 index, key for representing Japanese investor sentiment, rose 0.65%, reversing several days of bearish performance.

Cryptocurrency performed excellently immediately following speculation of a Trump executive order allowing for the use of alternative assets in retirement accounts like 401ks, contributing to Bitcoin's 2.1% rise, XRP's 4.01% rise, Ethereum's 5.24% rise, BNB's 1.49% rise, and Solana's 3% rise.

However, the rest of the market sank as a result of President Trump's enactment of new tariff policies on several foreign trading partners which include the EU and Japan, all of whom will face a 15% tariff rate, and a higher overall average reciprocal tariff increase of 18.3%, according to the Yale Budget Lab.

The Magnificent Seven suffered the least, fueled by Tim Cook's $100 billion Apple deal with President Trump to invest in domestic industry. The stock rose 3% today after rising 5% yesterday. Other Mag. 7 members like Nvidia and Tesla rose; Meta and Microsoft were the only two to have fallen victim to the general trend of the market today: bearish.

Fortinet fell by a whopping 22% after failing in its Q2 earnings report. Among the other companies who've received terrible earnings results included Crocs Inc. and Hagerty Inc. (which beat in revenue, but failed expectations in earnings-per-share).