TheDrop Market Analysis, 08/13/25

Markets moderately rose as investors continue to feel enthusiastic about a September interest rate cut following the release of July's CPI report yesterday.

The Federal Reserve Bank of the United States.

The S&P 500 index rose 0.32%, the Dow 30 index rose 1.04%, the Nasdaq index rose 0.14%, and the Russell 2000 index rose 1.98%. Foreign ETFs performed similarly well, carrying the American enthusiasm beyond borders, with the Japanese Nikkei surging 1.3% and the British FTSE 100 rising 0.19%.

As for cryptocurrencies, Bitcoin made landmark improvements with a new all-time high of over $123,000 per coin, and XRP also reaching higher in valuation.

Crude oil prices rose unexpectedly, while gold and silver stagnated.

Generally, investors flooded their capital into stocks as they continue to support the possibility of a September rate cut as a result of yesterday's Consumer Price Index (CPI) results showing minimal inflation growth despite tariff pressures. But, the inflation rate has still remained quite large - 2.7% - with not much improvement. Some parts of the economy, such as shelter, saw marginally higher growth in prices, however being offset by fuel.

The Magnificent Seven lagged behind the rest of the market after President Trump announced a flat 15% "tax" on the largest artificial intelligence chip producers like AMD and Nvidia.