TheDrop Market Analysis, 10/29/25

Markets rose marginally on Wednesday as investors reacted to Jerome Powell's announcement that a 25-basis point rate cut was realized in the Federal Reserve's October meeting, while also raising the possibility of a potential December rate cut by a similar margin.

Chair of the Federal Reserve Bank of the United States Jerome Powell, Oliver Douliery/AFP.

The S&P 500 index fell marginally as the Nasdaq Composite continued its upward trajectory from yesterday. The Dow Jones Industrial Average, which measures the top 30 most influential companies in America, fell by a mere 0.2%. The VIX volatility index rose slightly by 3.05%, reflecting the overall stagnant behavior of stocks in reaction to important news both in the United States and internationally.

World ETFs generally fell, especially those in Asia, as the Trump-Asia tour continues. Bond markets surged amid news from the Federal Reserve of an interest rate cut, potentially increasing the volume of loans being taken out from borrowers. Commodities like gold and silver, just like cryptocurrencies, shrank in valuation throughout the day as the dollar is expected to inflate.

Investors reacted slightly positively, but simultaneously not very impressed by the Federal Reserve's ultimate decision to cut interest rates by 0.25%, fueled by weakening job data and flatlining price growth, as indicated by moderate CPI shifts. However, they also expressed their concerns and optimism for the Trump meeting with President Xi in South Korea, which many anticipate to either make significant progress or lose progress in ending the ongoing U.S.-China trade war.

The Magnificent Seven managed to outperform the rest of the market, with Nvidia leading gains with its 2.99% rise, fueled by its landmark achievement of being the first ever publicly traded company with a market cap of $5 trillion. Similarly, Apple shares have made similarly impressive records in price value.

Quantum Computing stocks performed very well, with Rigetti rising 6.3% and D-Wave Quantum rising 7.06%. IONQ, a rival to Rigetti, held similar results. Their rise could have been due to a combination of Nvidia CEO Jensen Huang's reassurances that quantum computers will use Nvidia hardware, that President Trump hopes to invest in quantum computing stocks like he did with Intel, and that many analysts have cited these stocks as buys or even strong buys.