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TheDrop Market Analysis, 10/20/25

Markets rose significantly to start a fresh new week, fueled by key wins by Apple and other companies.

Apple's Chief Executive Officer Tim Cook, livemint.com.
Apple's Chief Executive Officer Tim Cook, livemint.com.

The S&P 500 index soared 1.07%, in conjunction with the Dow Jones Industrial Average's 1.12% rise, the Nasdaq Composite's 1.37% rise, and the Russell 2000's 1.95% rise. Meanwhile, the VIX volatility index took a major hit, -12.27%, as stocks quite linearly went up, a break from last week's constant volatility up and down.


Global ETFs and stocks performed tremendously well, which was caused by the American technology rally. In Asia, the SSE Composite rose 0.63% and the Japanese Nikkei 225 index rose by a staggering 3.37%. Similarly, in the European region, the German DAX P led the way with its 1.8% gains, with the FTSE 100's 0.52% rise and the CAC 40's 0.39% rise following suit. Even cryptocurrency, which took on major losses last week, surged, with Bitcoin rising 1.56% and XRP rising 3.94%. Yet, some cryptos like Ethereum didn't manage to pull through gains, but didn't fall significantly, either. This could be due to the after-effects of their selloff from last week, with correction seemingly more prevalent that full on growth. Commodities like hold and silver rose by respectable margins, as well.


The only downside to markets today has been bonds, with the 10-Yr bond rate falling 0.52%, along with the 5-Yr bond rate among other metrics. This has primarily been fueled by credit concerns among many American regional banks.


The combination of international news with domestic news fueled Monday's rally. Firstly, the Trump administration approved of a rare earth deal with Australia, a key exporter of such exports, while confirming a meeting with Chinese President Xi Jinping. Secondly has been individual firm performance, with Apple seeing quite grandiose gains in iPhone 17 sales, and expected earnings reports from EXE, CLF, ZION, and others. Apple specifically led its companions in the Magnificent Seven with its strong 3.94% rise after the report from the research firm Counterpoint.


Investors are now eyeing future earnings reports from Tesla and Netflix this week, along with a delayed release of the Consumer Price Index (CPI), which has been halted due to the ongoing government shutdown.

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