TheDrop Market Analysis, 11/28/25

Markets surged on Friday, ending the shorter week (due to holiday) in a very positive note, amid concerns of an "AI Bubble."

President Trump in front of reporters in the White House's South Lawn, Tom Williams/CQ-Roll Call Inc.

The Nasdaq Composite, comprising of some of the largest tech stocks in the market, once again led gains as fears of a so-called "AI Bubble" begin to cease. It rose by 0.65%, narrowly edging out the Dow Jones Industrial Average's 0.61% rise, and the S&P 500's 0.54% rise. The lesser-followed Russell 2000 index, comprising of mainly middle-sized companies, rose by a comparable 0.58%. The VIX volatility index fell slightly as stocks gradually rose throughout the day, avoiding much significant movement.

Commodities trading proved to be very successful as gold and silver valuations rallied. Gold in particular rose 1.27%, one of its greatest shifts upwards in weeks and now very close to surpassing its record price per ounce. Silver similarly reached near all-time highs. Crypto had more stagnant results, with Bitcoin falling slightly while Ethereum traded higher during market hours. The USD similarly performed below average, weakening against several major currencies like the Canadian Dollar and the Japanese Yen, as interest rates are expected to go down. European indices, like the British FTSE 100, saw strong results as American fervor reached overseas.

Stocks rose yet again as investors now predict an interest rate cut in December, in fact by the highest margin in several weeks. According to FedWatch, current odds stand at an 86.4% chance, rising by about 2% from a week ago. And recent strong AI investments from SoftBank and other large firms have enticed investors into believing that the tech industry remains strong despite some skepticism. Very surprising was the Trump administration's repeated assurances that tariff revenue will "skyrocket," potentially minimizing the necessity for income tax on many Americans, though we have not seen enough of a gain yet to make this concept feasible.

The Magnificent Seven largely rose in valuation per share, with Google rising 1.77%, Meta rising 2.26%, and Microsoft rising 1.34%, among other strong performances. Yet, due to fears of Nvidia's market dominance receding, its price per share fell 1.81%, fueled by Google's new TPU Chip. AMD took advantage of its rival's fall, today rising 1.54%.

Amazon and other digital commerce companies like eBay saw growth in share price as Black Friday demand grapples markets.