TheDrop Market Analysis, 12/08/25

Markets fell slightly as investors await the Federal Reserve's December interest rate meeting.

A phone with the Netflix logo, napoleonschwan/pixabay.

The Dow Jones Industrial Average led losses on Monday with its 0.45% decline in point-value, followed closely behind by the S&P 500 index, which fell by a similar 0.35%. The Nasdaq Composite, which is comprised of the stock market's most influential tech tickers, fell by a smaller 0.14%, and the Russell 2000 small cap-heavy index barely moved, inevitably falling by 0.02%. The VIX volatility index rose 8.11%, reflecting today's greater magnitude of movements in certain areas than last week Friday.

European stocks tumbled today, fueled by consumer-facing firms like L'Oreal and Unilever falling, dragging down the broader index despite resilience by industry stocks. The British blue-chip FTSE 100 fell 0.23%, the French CAC fell 0.08%, and the German DAX (comprised of more industrial stocks which proved more powerful) managed to eke out a 0.07% gain. In Asia, stocks held off as investors await the U.S. Federal Reserve's December meeting. While the Japanese Nikkei 225 rose 0.18%, the Hongkonger Hang Seng fell 1.23%.

Cryptocurrencies made modest gains as they attempt to correct and end their losing streak, combined with more buying pressure as their values are reduced. The Bitcoin value rose 0.5%, while its rival Ethereum rose by a higher 2.4%. Gold & silver commodities likewise made moderate gains in an effort to correct from previous losses.

Stocks fell slightly as investors uneasily wait for the Fed to announce their interest rate decision, likely a 25 basis points-cut based on the betting odds from FedWatch, though no change and a 50 basis points-cut are also within reach. Their losses were exacerbated by bilateral criticism, even by more attentive consumers, against the Netflix purchase deal of Warner Bros. Several politicians including Elizabeth Warren cited monopolistic concerns, and many consumers believe the deal to be a corporate overhaul of widely used products like HBO.

The Magnificent Seven fell across the board except for Microsoft and Nvidia. Nvidia specifically announced sales of Nvidia's H200 chips to China as trade tensions ease, prompting a decent 1.72% rise in share price, and more gains in afterhours trading.