TheDrop Market Analysis, 08/08/25

Markets skyrocketed to finish the week strong as investors questioned tariffs, Fed policies, and Trump's firing of IRS Chief Billy Long.

Nominee for the Federal Reserve Board of Governors Stephen Miran.

The S&P 500 composite rose 0.78%, the Dow 30 composite rose 0.47%, the Nasdaq composite rose 0.98%, and the Russell 2000 composite 0.17%. On quite the contrary, the VIX volatility index fell 8.57%.

Gold, initially up high in the morning, slumped after the White House stated that it would make an executive order law "clarifying misinformation about the tariffing of gold bars" related to reports that Swiss tariffs did not exempt gold importation.

Investors poured in their capital into stocks after Trump nominated Stephen Miran as a Fed governor, a Trump ally who has called out for interest rate cuts. Investors generally enjoy any sign of rate cuts, so enthusiasm skyrocketed. In addition, a key tariff-related ruling could potentially undermine Trump's tariff authority, exciting investors previously upset by the relentless push for import tariffs by the president.

Furthermore, at the end of the day, the Trump administration announced that they would remove current head of the IRS Billy Long, who is seeking a promotion elsewhere. During his brief term, the IRS fired a double-digit percentage of employees.

The Magnificent Seven has performed very well, with Apple carrying its momentum from yesterday.