TheDrop Market Analysis, 11/26/25

Markets surged for yet another day as expectations for a December interest rate cut continue to spike.

Chair of the Federal Reserve Bank Jerome Powell, AP Photo/Amber Baesler.

The Nasdaq Composite, which comprises of some of the top tech stocks, led gains once again among the top indices, with it surging 0.82% in point value. The S&P 500 followed closely behind with its 0.69% rise, and the Dow Jones Industrial Average rose 0.67%. The lesser known but still meaningful Russell 2000 index rose 0.82%, reflecting the overall shift upward across most sectors of the economy, even smaller businesses. The VIX volatility index fell 7.4% as today's bull market trended upward at a steadier pace than usual, as it has been for quite some time (involving market-wide rallies, bear markets have usually been more severe).

Global stocks also rose as the first goods exchanges between the United States and China are made successfully, easing global tensions regarding threats to free trade. In Europe, gains were more apparent, with the British blue-chip index FTSE 100 rising 0.85%, the French CAC 40 index rising 9.88%, and the German DAX P rising 1.11%. In Asia, indices like the Nikkei rose, but by smaller margins than their European & American counterparts.

For the first time in several days, precious metals corrected while crypto spiked upward, as fears of an "AI Bubble" begin to recede. Gold's valuation, for instance, fell 0.11% while Bitcoin's value rose 3.39% (as of 8:03 PM EST). Bond markets trended upward (apart from the 10-Yr and 10-Yr figures) as rate cut excitement incentivizes greater quantity demanded for bonds.

Investors were hyped by growing probabilities of an interest rate cut in December (specifically after its next meeting in just under two weeks), with the probability standing at 84.7% according to FedWatch. But investors today looked at the multitude of deals signed between the Trump administration and key companies like SoftBank regarding major artificial intelligence investments, and the executive order launching the "Genesis Mission" for AI, the administration's newfound effort post-Stargate (the previous AI effort between the Trump admin. and Oracle, OpenAI & SoftBank). Many saw these deals as an indicator that AI demand continues to be strong, despite concerns of otherwise.

Nvidia rebounded 1.37%, while Google (which previously rose yesterday), now fell 1.04% in its corrective effort, perhaps due to the stock's status of overvaluation. Tesla, another AI pioneer, rose today, fueled by the Trump administration's "Genesis Mission" initiative.

Shocking news came in after hours with Canada increasing tariffs on American-made steel after having negotiated with the Trump admin. to bring tariffs down, perhaps leading to some market downturn in the coming days (although less stock market activity will occur due to the Thanksgiving holiday).