TheDrop Market Analysis, 09/25/25
- Alexangel Ventura
- 21 hours ago
- 2 min read
Markets fell slightly on Thursday as the future of Fed interest rate policy grows uncertain as jobless claims drop and GDP growth has a strong upgrade.
The Dow Jones Industrial Average fell 0.4%, the Nasdaq Composite fell 0.5%, and the Standard & Poor's 500 index fell 0.5%. The VIX volatility index rose by 3.5%, reflecting the more sharp declines experienced over the course of the day.
European ETFs dropped following Russia's warning to the North Atlantic Treaty Organization (NATO) that any effort of shooting down Russian aircraft from non-Russian airspace would result in all-out war. The British FTSE 100 fell 0.4% and the French CAC 40 fell 0.4%, for instance. Asian stocks had a similar reaction as global tensions reached a turning point.
While bond markets soared, cryptocurrencies and the U.S. dollar weakened, as interest rate cuts seem less likely. Bitcoin fell 3.3% and XRP fell 5.1%, for example. However, the exodus from traditional fiat and cryptocurrencies resulted in the strengthening of the valuations of gold and silver, along with copper and other precious metals.
Stocks generally fell as a rise in GDP growth estimates combined with strong jobless claims broke the previously strong sentiments among investors that an interest rate cut was likely at the end of the year. This was combined with tensions from the Federal Reserve, where Fed governor Lisa Cook told the Supreme Court to reject her firing by the Trump administration, and growing division over the rate cut issue. President Trump via executive order approved of the $14 billion TikTok transfer of private ownership deal, with China yet to agree to such terms.
The Magnificent Seven largely fell as artificial intelligence suffered a hit today, with Microsoft falling 0.6% and Google falling 0.5%, for instance.
