TheDrop Market Analysis, 09/02/25

Markets fell after an appellate court's ruling deeming most Trump tariffs illegal, sparking mass uncertainty and selling pressure.

U.S. President Donald Trump, Sam Wolfe/Reuters.

The S&P 500 composite fell 0.69%, the Dow 30 composite fell 0.55%, the Nasdaq composite fell 0.82%, and the Russell 2000 composite fell 0.6%. Meanwhile the VIX volatility index rose 6.5%, reflecting on the sharp declines experienced all across the market today, although stocks did recover slightly over the course of the afternoon hours of trading.

Gold made a landmark achievement by reaching its all-time highest price ever recorded, an average of $3,595.80, or a 0.1% rise on the same day. This was attributed to a weakening dollar as well as Trump-Fed tensions following the dismissal of Fed official Lisa Cook.

Foreign ETFs also made losses in conjunction with those of their American counterparts; the British FTSE 100 fell 0.87% and the French CAC 40 fell 0.7%, for instance.

Crypto, meanwhile, made shocking surges as a Fed September rate cut becomes more likely in the betting odds per Polymarket, especially after Jerome Powell's Jackson Hole speech and the recent release of the PCE report, which showed non-volatile inflation growth.

All Magnificent Seven stocks fell, especially Nvidia and Tesla. Tesla in particular faced weaker vehicle registrations across the European market as competitors ramp up cheaper models.

However, following market hours a court ruled that Alphabet Inc. should not sell Chrome, sparking noticeable rises amongst members of the Magnificent Seven, especially Google, in market after hours.

The Kraft Heinz company fell after it completed its separation deal. Ulta Beauty stock, meanwhile, recovered from previous losses incurred last week.