TheDrop Market Analysis, 11/10/25

Markets sharply rose as investors received a sense of optimism from the Senate's approval of a Trump-backed deal to ending the ongoing government shutdown, now the longest in American history.

New Hampshire Senators Maggie Hassan and Jeanne Shaheen, who were pivotal Democrat moderates to reaching a majority vote on spending resolution.

The Nasdaq Composite, which comprises of many tech-heavy stocks, led gains with its 2.27% surge, in conjunction with an AI rally. The S&P 500 index followed closely behind with its 1.54% rise, and the Dow Jones Industrial Average rising 0.81%. The VIX volatility index surprisingly leveled off with its 7.8% decline, reflecting the gradual but strong growth which stocks experienced today.

Global stocks also grew sharply as American news of a potential end to the shutdown expanded, and several countries like Switzerland reached significant progress in renegotiations of American-imposed tariffs on their exports. In Europe, the British blue chip-heavy FTSE 100 index rose 1.08%, with the French CAC 40 rising 1.32% and the German DAX P rising 1.65%, not too far ahead. In Asia, the Hang Seng, SSE Composite, and the Japanese Nikkei all grew in point value.

Even bond markets grew strongly, with the 5-Yr Bond Rate rising 0.82% and the 10-Yr Bond Rate rising 0.42%. Gold and silver both strengthened in valuation while crypto and the USD (against several prominent currencies) depreciated.

Stocks sharply rose as the U.S. Senate voted on a narrow passage of a spending resolution to the House of Representatives in hopes of ending the ongoing government shutdown, which includes substantial increases in healthcare spending, although not enough to please more progressive members of the party like Bernie Sanders and Elizabeth Warren. In fact, they've continued to express resentment over the inevitability of premiums to rise as a result despite revisions. However, the prospects of a mere end to the shutdown alone pleased investors, causing stocks to rise. In conjunction to this has been the president's new 50-year mortgage plan, which he himself compared in terms of impact to FDR's 30-year mortgage plan, which is expected to provide relief to Americans in the eyes of the administration. Bond markets were especially pleased with this move, as this meant that mortgage loans could be extended for much longer.

All members of the Magnificent Seven surged, but the largest players to the AI industry, Nvidia, Google, and Tesla, surged the most as earnings reports and projections for the S&P 500 showed a surprisingly strong tech sector despite external pressures. Tesla in particular were enthused by CEO Elon Musk's strong enthusiasm for the direction of the company toward robotics and self-driving cars (as shown by his $1 trillion deal) and his growing involvement in the company.

The firm UBS projected that the S&P 500 would grow by over 14% YoY in 2026, with AI still making up much of the capital growth.