TheDrop Market Analysis, 09/15/25

Markets rose as investors retained high hopes for a strong rate cut action this week by the Federal Reserve ahead of the bank's September meeting.

The Federal Reserve Bank of the United States.

The S&P 500 index rose 0.5% to 6,615.28 points, an all-time high, and the Nasdaq composite rose 0.9% while the Dow Jones Industrial Average increased by a meager 0.1%, just below its record high. The VIX volatility index surged 6.3% as stocks had a quite volatile opening today.

European ETFs generally stagnated or rose as a ripple effect from their American counterparts' success, with the British FTSE falling 0.07% and the French CAC 40 rising 0.92%. Asian stocks stood firm as U.S.-China talks stood on the balance.

Cryptocurrencies and commodities also traded quite leveled as interest rate bets continued to fluctuate, with some arguing that the rate cuts proposed by Jerome Powell in his previous Jackson Hole address could weaken the valuation of the US Dollar.

These stocks rose as investors retained their optimism from last week that the Federal Reserve would cut rates by 25 or even 50 basis points, with the latter still being less likely than not. In addition, the Trump administration successfully appointed Dr. Stephen Miran, who received a doctorate in economics from Harvard University, into the Federal Reserve Board of Governors. Lastly, President Trump announced today that he has reached a deal with China regarding trade and TikTok ownership, which has loomed for months over his administration.

Tesla led gains in the Magnificent Seven pack as Elon Musk invested $1 billion into his stake in the company, persuading investors that the company may be bullish. Other Mag. 7 tickers rose with the exception of Nvidia, which faces heavy competition in the AI industry to its rivals like Google, which rose substantially in share price today.