TheDrop Market Analysis, 09/24/25

Markets fell today as cracks begin to show within the walls of the Federal Reserve over future interest rate policy.

Chair of the Federal Reserve Jerome Powell.

The S&P 500 index fell 0.3%, the Dow Jones Industrial Average slipped 0.4%, and the Nasdaq Composite fell 0.3%. Many of these stocks fell yesterday due to correction, but the effects of post-bullish trend toward more sustainable levels has not ceased.

The VIX volatility index fell 2.76%, reflecting the market's overall linearity downward. But, the bond market performed exceedingly well as odds for a future rate cut decline. This, however, also led to the USD weakening against several world currencies like the British Pound, and for commodities to stagnate.

In fact, stocks were pressured to sell off as comments from Fed officials this week gave a glimpse as to the growing divide inside of the Federal Reserve bank over rate cuts as inflation continues to spike but job growth dwindles, leading to a ticking-up unemployment rate. This comes despite Fed chair Powell's opinion that gradual rate cuts should be pursued after August's poor jobs data.

The Magnificent Seven stocks, especially yesterday's bulls like Nvidia and Apple, have fallen. But, Tesla and Meta managed to squeak out minor gains, with Microsoft stagnant.