TheDrop Market Analysis, 07/25/25

Markets rose yet again, finishing off a week mostly dominated by bull markets, with the exception of select earnings reports from tickers, like Tesla or IBM.

The S&P 500 composite rose 0.4%, the Dow 30 composite rose 0.47%, and the Nasdaq composite rose 0.24%; in addition, the medium-business-dominated Russell 2000 index rose by 0.4%, broadening today's market wins beyond the largest companies.

Crude oil fell today by 1.45% on average; foreign ETFs, meanwhile, performed worse than their American counterparts, with the FTSE 100 falling 0.2% and the Nikkei 225 falling 0.88%.

Cryptocurrency finished this week strong, with Bitcoin rising 0.62% and XRP rising 1.75%. Moreover, Ethereum rose 0.27%.

Stocks rose Friday due to streak of Trump trade deal victories with foreign trading partners, most particularly with the South Asian nation of Indonesia, which earlier this week signed an agreement eliminating 99% of tariff barriers with the United States while securing critical minerals and billions in Boeing aircraft purchases, according to Fox Business. This trade deal would also prevent any American tariff retaliation, meaning that the current status will remain.

In addition, Trump earlier this week also signed a trade deal with Japan bringing tariffs down to 15%, in return for $550 billion in Japanese investment into the United States and would "open" its economy to American automobiles and rice.

Furthermore, strong earnings report continued to accelerate stock rises, with Google's surprisingly strong earnings release on Wednesday solidifying it as a leader in artificial intelligence, while Verizon's earnings report today proved to be similarly strong.

Bond markets held steady today, despite growing tension between the Trump administration and the Federal Reserve over rate cuts.