TheDrop Market Analysis, 09/05/25

Markets fell following one of the Trump administration's greatest defeats economically through a failed August jobs report.

President Donald J. Trump at a White House dinner with top tech executives including Sam Altman and Mark Zuckerberg, Yahoo Finance.

The S&P 500 index fell 0.32%, the Dow 30 index fell 0.48%, the Nasdaq composite fell 0.03%, and the Russell 2000 rebounded over the course of the day with a 0.48% rise despite plummeting in the morning in reaction to the Bureau of Labor Statistics' jobs report. The VIX volatility index fell 0.78%, showing that today's declines were linear negative/stagnant, with some outliers proving to make solid recoveries, as the aforementioned Russell.

Gold strengthened 0.92%, continuing to make all-time records. many cryptocurrencies marginally grew apart from Bitcoin, as Ethereum threatens to tackle its dominance over the crypto trading industry. Asian ETFs like the Hang Seng rose as inter BRICS relations improve, while European ETFs fell as a result of the fallout from America's jobs report.

The 10-yr bond rate fell 2.2% as a result of the rise in rate cut chances, along with the 5-yr, 12-wk, and 30-yr bond rates as publicly listed on U.S. markets. Crude, natural gas, and copper also fell.

The USD weakened against many currencies such as the Yen, the Australian Dollar, and the British Pound, as fueled by rate cut odds.

Stocks largely fell due to August's jobs report release, which showed a minimal job growth rate which proved to be an underperformance against expectations, and several industries like manufacturing suffered the greatest hits, with 10k+ jobs in these fields fleeing the United States. Many analysts cite this as a reason for the failure of Trump tariff policies, while others cheered as it meant that a September interest rate cut became very likely.

Many members of the Magnificent Seven fell, including Nvidia, Amazon, and Microsoft. Nvidia specifically faced heavy pressure from competitor Broadcom which surged by over 9% as it teamed up with OpenAI for artificial intelligence chips, challenging Nvidia's Blackwell GPU lineup. Meanwhile, Google continued its rise from its huge antitrust lawsuit victory.

Advanced Micro Devices (AMD) stock fell significantly as a result of Broadcom's massive collaboration.