TheDrop Market Analysis, 11/21/25

Markets rose slightly as the Federal Reserve eased concerns that a rate cut would not be coming in December.

Fed Chair Jerome Powell.

The S&P 500 index rose 0.98%, the Dow Jones Industrial Average rose 1.08%, the Nasdaq rose 0.88%, and the Russell 2000 rose by a large 2.8%. The VIX volatility index sank 11.3%, as markets seemed to move less frequently throughout the day than previous days this week.

In Europe, stocks seemed to have leveled even as no major news struck the continent, but investors retained their low hopes for tech stocks which they deem overvalued. the British blue-chip index FTSE 100 rose 0.13% and the French CAC 40 rose 0.02%, but the German DAX P fell 0.8% and the Euronext Index fell 0.7%, revealing the truly stagnant nature of the European market today. In Asia, stocks fell much deeper as they digest yesterday's American stock fall, renewing fears of an AI Bubble, with the SSE Composite falling 2.45%, the Japanese Nikkei 225 index falling 2.4%, and the Hang Seng falling 2.4%.

Cryptocurrencies continued to have fallen, continuing their dangerous trend downward in value. Now at almost $20k from the $100k threshold it passed months ago, Bitcoin seems virtually unrecoverable in the near future, with it falling 2.6% as of 7:36 PM EST. Other cryptocurrencies like Ethereum, XRP, and Tether also fell by large margins, as investors pull out using those alternative assets' high liquidity. Meanwhile, gold and silver seemed to stabilize due to their less liquid nature. Bond markets sank, with the 10-Yr Bond Rate falling 1.1%, for example.

Stocks in the United States seemed to have recovered due to the Federal Reserve's reassurances (or at least hints of) a December interest rate cut, despite previous pessimism of such. NY Fed President John Williams said on Friday "I still see room for a further adjustment in the near term to the target range for the federal funds rate to move the stance of policy closer to the range of neutral," immediately boosting interest rate cut (25 basis points one) betting odds. And on the same day, Fed governor Stephen Miran said that he would vote for a 25-basis point cut. According to FedWatch, a December rate cut has a 69% probability, as of 6:26 PM EST.

The Magnificent Seven seemed to have recovered significantly apart from Nvidia, which has suffered setbacks from its poor China results. While Nvidia fell 1%, Google led the pack forward with its 3.33% rise in share price.