TheDrop Market Analysis, 12/04/25
- Alexangel Ventura
- 1 day ago
- 2 min read
Markets did not change, very literally so, as investors retain the exact same sentiments which they held from yesterday.
The Nasdaq Composite, comprised of some of the largest tech-heavy tickers in the economy, rose slightly by 0.2%. However, the Dow Jones Industrial Average fell 0.1%, and the S&P 500 rose 0.1%. The VIX volatility index fell 1.87%, reflecting on the overall stagnant nature of the stock market during trade hours Thursday.
European stocks rose all across the board today as industrial and auto stocks boomed - fueled by stronger sentiments from a U.S. policy suggestion to loosen fuel-economy standards. And these stocks were driven higher by global equities boost from optimism for a Federal Reserve rate cut in December. The FTSE 100 index rose 0.19%, the French CAC 40 rose 0.43%, and the German DAX rose 0.8%. Asian stocks, however, fell later in the day, with the Nikkei and the Hang Seng having fallen as of 9:30 PM EST.
Cryptocurrencies fell slightly, with Bitcoin down 1.4% and XRP down 4.4% as of 9:30 PM EST, as they correct from their recent "relief rallies." Gold did also depreciate in value, with it falling 0.26%. But bond markets proved to be stronger as rate cut hopes remain high, potentially boosting future prospects for acquiring loans. The 5-Yr Bond rate rose 1.6% and the 10-Yr Bond rate rose 1.26%.
Markets stagnated as investor hopes for a December rate cut remain high, right around 85% as of FedWatch. Many anticipate either a 25 or 50 basis points rate cut, with the former being the most likely. Investors also watched the "Trump Accounts" concept grow in feasibility, and a recent bipartisan push for a stock-trade ban in the House of Representatives.
The Magnificent Seven had very mixed results, with Microsoft rising as it pursues cooperation with LG. Nvidia, Meta, and Tesla also rose by substantial percentages.
Lumen Technologies (LUMN) fell 8.3% in share price after it rallied previously, now a 70.6% surge this year alone. This was fueled by new product launches by the small-cap tech stock as the remainder of the tech market is filled with concern over high valuations.
