TheDrop Market Analysis, 09/17/25

Markets stagnated as investors did not get what they hoped from the Federal Reserve during today's meeting, but they were still awarded with a small rate cut.

The New York Stock Exchange, Spencer Platt/Getty Images.

The S&P 500 index fell 0.1%, the Dow Jones Industrial Average rose 0.6%, the Nasdaq composite fell 0.3%, and the Russell 2000 index rose by a modest 0.18%. The VIX volatility index, meanwhile, fell 3.9%, reflecting the overall stagnation experienced during Wednesday's trading hours.

Europe saw mixed results, with the British FTSE 100 index rising slightly ahead of U.S. President Trump's state visit to the United Kingdom and the announcement of a multi-billion tech investment by Microsoft into the British economy. The French CAC among others saw marginal losses. Asian ETFs like the Japanese Nikkei 225 saw a very similar level of stagnation today.

Cryptocurrencies stagnated as well, with Bitcoin falling 0.31% and Ethereum rising 1.87%. Crypto traders saw a rate cut coming, therefore no major surprises occurred warranting a significant shift.

The 10-yr bond rate rose slightly as the rate cut slightly elevated economic optimism.

Commodities likewise traded very modestly, with gold valuation shrinking 0.38% and silver up 0.11%.

Investors received news of a 25 basis point rate cut by the Federal Reserve in the aftermath of the Fed's September meeting, resulting in some satisfaction but with not much surprise. Some anticipated a 50 basis point cut, but such a large bargain was not answered.

The Magnificent Seven stagnated, with Tesla leading gains ahead of Elon Musk's internal acquisition of stock.

Following a surprise statement by Kash Patel that Krispy Kreme stock was a buy, investors poured into the donut giant in afterhours, resulting in an over 7% surge.