TheDrop Market Analysis, 11/05/25
- Alexangel Ventura
- 7 days ago
- 2 min read
Stocks made a substantial recovery from their losses yesterday as the Supreme Court begins to take action against the heavily unpopular tariff policies of the Trump administration, along with recovering rates of job growth as new job data comes in.
The Dow Jones Industrial Average rose 0.5%, the S&P 500 0.4%, and the Nasdaq Composite 0.7%, all of which experienced similarly strong growth in point value as compared to their behavior from yesterday, when they fell significantly due to earnings report woes among other factors.
Stocks made significant growth today as investors become optimistic regarding the vitality of the job market as the release of the ADP job payrolls report indicated returning job growth, though previously, those same investors celebrated mass layoffs for provoking interest rate cuts and AI integration across many sections of the economy, starting at the nation's largest companies whose immense access to resources enable a swift and seemingly fluid transition, though more high-pay and skilled laborers are losing their careers from structural unemployment.
Additionally, investors saw the Supreme Court's move against Trump today to be an indicator that tariffs may start to come down, especially when combined with the Senate's majority vote to overturn some of the Trump administration's executive-held tariff laws. In fact, several supreme court justices, per the BBC, were perceived to be quite in opposition to aspects of the tariffs, with skepticism among members of the court over their continuation in effect as trade barriers growing.
The Magnificent Seven stocks mostly rose in unison, with the exceptions of Nvidia and Microsoft, with the former riding off of record-high valuations in share price. And, Jensen Huang (CEO of Nvidia) making a speech warning of China's growing influence in the development of AI invoked fear market-wide, leading to futures declining in market after hours.
Tesla specifically made a 4% rise as investors await for it's meeting discussing the feasibility of providing CEO Elon Musk a $1 trillion pay package, with key shareholder Norway (through its sovereign wealth fund) expected to vote against its implementation. Elon Musk himself described the importance of such package as to make stock buybacks, and hold on to his influence over Tesla to make its future actions guided by him - which include robotics and autonomous driving.
Robinhood shares surged in after hours as its crypto revenue surged by 300%, tripling earnings YTD.
