TheDrop Market Analysis, 08/18/25

Markets stagnated as the Trump-Zelensky meeting took place, and September rate cut prospects remain unclear for now among investors.

President Trump and President Zelensky.

The S&P 500 index fell 0.01%, the Dow 30 index fell 0.08%, the Nasdaq index rose 0.03%, and the Russell 2000 index rose 0.35%. Meanwhile, the VIX volatility index fell 0.66% as markets tended to stay on the stagnant side of buy/sell pressure.

While mainline stocks stayed flat, cryptocurrencies collapsed, with Bitcoin falling 1.24%, XRP falling 1.03%, and Ethereum falling 3%.

Markets slumped as the Trump-Zelensky meeting raised more questions than answers, and the September rate cut prospects remain unknown. As of now, investors are still leaning toward a 25-basis point cut, but even that isn't the consensus.

Bank of America today made a stern warning that markets will shift in dominance from the Magnificent Seven companies over to new industries as investors reinterpret the future vitality of holding shares in the Mag. This was what led to four of the seven members of the elite ticker group falling, while the other three stagnated.

Starbucks shares saw a breather today, a 2.1% rise, after it announced a 2% increase in wages for all salaried employees.

Meanwhile, Intel plummeted by almost 4% as the Trump administration made a bid to acquire 10% shares ownership over the chipmaker. Some believed this move to be a step in the direction of "state-controlled capitalism."