TheDrop Market Analysis, 09/08/25

Markets rose modestly as investors have high hopes for an interest rate cut this month, and an inflation report this week to further the Fed's chances of approving a sizeable cut.

The Federal Reserve Bank of the United States, fity.club.

The S&P 500 index rose 0.2% and the Dow 30 index rose by a comparable 0.2%. Meanwhile, the Nasdaq composite surged 0.5%, reaching an all-time high share price. Overall, these major funds proved to have made a substantial rebound from their losses last week, fueled by strong investor sentiment.

Stocks all across the European market surged, from the British FTSE 100 to the French CAC 40; Asian stocks like the Japanese Nikkei 225 surged as well, with it rising by over 1.2%, respectively.

Cryptocurrencies had a very strong morning with multi-point gains across the board, but their momentum collapsed midday, leading to modest gains overall; Bitcoin rose 0.72% and XRP rose 2.96%. The 10-Yr Bond rate fell by 1% as rate cut odds skyrocket.

Markets rose as investors anticipate a poor inflation report to persuade the Federal Reserve to pursue the long-awaited interest rate cut, with many predicting a 25-basis point cut but others feeling more confident in as high as a 50-basis point one.

The Magnificent Seven largely stagnated, with Nvidia and Microsoft making small recoveries from their losses last week while some investors evacuate Google stock, which has recently been perceived as bloated for its massive rally last week.

SoundHound AI stock skyrocketed by 7%+ as investors pour in due to a strong earnings report early this month, and several analysts like Ladenburg Thalmann raised the stock's price targets.