TheDrop Market Analysis, 09/04/25

Markets surged yet again as investors have high hopes for a September interest rate cut, and for Friday's jobs report expected to justify deeper cuts by the Federal Reserve.

Chair of the U.S. Federal Reserve Bank Jerome Powell.

The S&P 500 composite rose 0.83%, the Dow 30 composite rose 0.77%, the Nasdaq composite rose 0.98%, and the Russell 2000 composite rose 1.26%. Meanwhile, the VIX index, measuring the magnitude of market movements or volatility, fell 6.42%, showing that today's movements were steady, linear, and upward.

Crypto began to stagnate today as investors remain uncertain regarding fiscal policies in the industry, despite almost certain odds for an interest rate cut this month. Specifically, the Securities and Exchange Commission (SEC) unveiled new crypto policies, shaking up markets. Bitcoin fell 0.87%, Ethereum fell 3.38%, and XRP fell 1.73%.

ETFs ranged based on region, with Japan's Nikkei 225 doing well while France's CAC 40 performing lower.

Investors generally poured their capital into stocks as they await tomorrow's jobs report, which is expected to be one of the final data points used by Fed officials in their September meeting in regard to interest rate policy. Many hope that the labor market remains steady and anticipate so.

The Magnificent Seven seemed to not yet halt their advance following Google's win in an antitrust lawsuit several days ago, keeping the momentum. Google itself rose 0.7% despite nearly hitting double-digits on Wednesday. Amazon and Meta drove up gains today.

American Eagle Outfitters surged 37.96% on a new collaboration with Sydney Sweeney and Travis Kelce. The company previous faced significant backlash from an advertisement playing a game of words with "genes" and "jeans," which some deemed to have had racial justifications.

SoundHound surged 4.3% after it surpassed $43 million in sales in the second fiscal quarter.