TheDrop Market Analysis, 08/22/25

Markets all around were bullish as investors rejoiced Jerome Powell's pivotal decision to make a likely rate cut as early as September, finally delivering on what investors hoped for months.

Chair of the Federal Reserve Bank Jerome Powell.

The S&P 500 composite rose 1.52%, the Dow 30 composite rose 1.89%, the Nasdaq composite rose 1.88%, and the Russell 2000 made huge gains with its 3.86% surge. Even foreign ETFs largely unaffected by American economic news saw magnificent gains in tandem with American ones: the British FTSE grew 0.13% and the Japanese Nikkei grew 0.05%.

Cryptocurrency had a very strong day after a week of constant blunders. Bitcoin rose 3.73% and XRP rose 6.96%. The only currency to finish weak was the dollar, which recently became overvalued as a result of a long period of high interest rates. Meanwhile, gold and silver grew in value.

The 10-yr bond rate went down as interest rates were expected to go down, shaking the bond market.

Jerome Powell's pivotal Jackson Hole address saw the first major announcement of a 25 basis point rate cut as early as September, which many investors have hoped for months. During and after the speech, stocks skyrocketed as enthusiasm about the economy reached a recent high, although the cuts are not the same magnitude propelled by the Trump administration's countless lofty proposals.

Intel surged 5.5% after it announced the 10% acquisition of its shares by the United States government, with President Trump affirming it as a "great deal." This is worth roughly $8.9 billion.