TheDrop Market Analysis, 08/20/25

Markets receded as investors had lower expectations for a September rate cut, alongside the general retreating from the Magnificent Seven/AI tech industry this week.

Bank of America Plaza in Los Angeles, California, United States.

The S&P 500 index fell 0.24%, the Dow 30 rose 0.04%, the Nasdaq index fell 0.67%, and the Russell 2000 index fell 0.32%. The FTSE 100 index for British technology rose 1.08% while the Nikkei 225 fell 1.5%.

The 10-year bond rate took another dip today with a 0.14% decline. The USD flatlined, while silver and gold made solid recoveries from their poor performances over the past week.

Cryptocurrencies also shockingly made a substantial recovery today in reversal of their earlier losses. Bitcoin rose 0.75% and XRP rose 2.38%.

Stocks fell today yet again as investors plan their retreat from Mag. 7 stocks and other artificial intelligence tickers ahead of Bank of America's warning that their dominance of the market "may be done." However, markets fell even further after the release of the Fed July minutes, which showed that only a few Fed officials supported a rate cut, reducing chances of a September rate cut.

Apple shares took a large hit today after the launch of Google's latest AI-integrated models of the Pixel phone, which has provided competition against Apple's use of ChatGPT AI into its respective iPhone.