TheDrop Market Analysis, 11/24/25

Markets surged on Monday, starting the week with very strong results after falling flat last week, as a result of higher optimism for an interest rate cut by the Federal Reserve next month.

The U.S. Federal Reserve building in Washington, D.C., Richard Sharrocks/Getty Images.

The Nasdaq composite, which holds many of the nation's largest tech stocks, led gains with its 2.7% rise in point-based value. The S&P 500 index followed just behind with its 1.5% rise, and the Dow Jones Industrial Average was rather lackluster in comparison, with its 0.4% tick upward. The VIX volatility index collapsed 12.42%, as stocks had a linear trend upward throughout the day.

European stocks stayed relatively stagnant as investors there reacted indirectly to high hopes for U.S. interest rates to fall, as the USD remains the predominant global reserve currency. The British FTSE 100 stagnated, falling 0.05%; the French CAC 40, similarly, flatlined below 0.29%; and the German index DAX P rose 0.64%. The DAX specifically was fueled upward by expectations that the European Central Bank (ECB) way begins to follow the easing monetary policy which is actively being pursued by the American Federal Reserve. With industrial stocks being pivotal parts of the German economy, a reduction in rates would allow for cheaper borrowing costs, leading to greater prevalence of business expansion in a country which has recently been a victim of job outsourcing.

Asian stocks had a very similar result, with stocks ticking very slightly upward as U.S.-China trade talks resume, but not by significant margins.

Cryptocurrencies like Bitcoin and XRP made significant recoveries to their valuations after falling by a double-digit percentage in November thus far. Now, these alternative investments are expected to consolidate to a more reasonable level until more news about the so-called, potential "AI Bubble" rear their ugly heads to investors, who used crypto as a high-liquidity retreat from the market. Gold and silver rose in valuation as those very investors become attracted to their relative stability in value.

Stocks rose as investors take into account last weekend's statements from Fed officials & presidents. Preston Caldwell, chief U.S. economist at the analyst firm Morningstar, assured to investors, "Given that today's numbers were not a bad as feared, in conjunction with hawkish statements from the Fed recently, it does appear that the Fed will skip a cut in December," though he noted that if the Fed doesn't pursue rate cuts in December, they may in January due to the "negative trend in labor markets."

Tesla saw a magnificent surge in share price never before seen in months, with its price per share surging 6.8% during trading hours, as an announcement from CEO Musk enticed investors with advancements to its AI5 and AI6 components in its cars, an AI chip used in facilitating self-driving capabilities. Other members of the Mag. 7 like Nvidia, Google, and Meta also surged by quite substantial margins.