TheDrop Market Analysis, 11/14/25

Markets stagnated as investors felt uneasy of a future interest rate cut.

Fed Chair Jerome Powell.

The Dow Jones Industrial Average led losses on Friday with its 0.65% decline in point value. The S&P 500 index likewise declined, but by a smaller 0.05% margin. On the other hand, the tech-heavy Nasdaq Composite ticked higher by 0.13%, fueled by AI optimism, and the small business-heavy Russell 2000 index rose by a slightly higher 0.22%. The VIX volatility index fell 0.85%, reflecting the overall stagnation markets experienced throughout the day.

Foreign ETFs had it much worse than their American counterparts, especially European stocks, which fell due to overvalued artificial intelligence stocks and poor earnings reports from those stocks. The British FTSE 100 fell 1.11%, the French CAC 40 fell 0.76%, and the German DAX P fell 0.69%. Asian stocks also fell but by smaller margins, with the Japanese Nikkei 225 falling 1.77% and the SSE Composite falling 0.97%, with it making deeper lows during the day.

Commodities and crypto traded lower, with gold falling 2.62%, silver falling 5.21%, and cryptos like Bitcoin and Ethereum falling by similar margins as investors interpret these currencies to be heavily overvalued. Gold specifically retreated from all-time highs, falling by over $110 per ounce.

Investors saw uncertainty as new economic data is expected to be released very late due to the effects of the government shutdown, and Fed officials made concerning statements about preventing the easing of interest rate policy, diminishing betting odds for a 25-basis point cut in December. Top Fed officials raised alarms of inflation & prices, but Fed Chair Jerome Powell has expressed concern of AI in the job market, forming an internal contradiction in the Fed - something that pro-rate cut investors should not be hearing.

The Magnificent Seven stocks largely fell, but Nvidia rose by the highest percentage, 1.77%, as investors bought the dip. It fell by roughly $10 in the past few weeks from its record high price of over $200 per share.