TheDrop Market Analysis, 12/10/25
- Alexangel Ventura
- 5 days ago
- 2 min read
Markets rose slightly as investors awaited the Federal Reserve's next move, with a late rally occurring when the Fed announced a 25-basis points interest rate cut in the afternoon.
The Dow Jones Industrial Average led the way with its 1.1% gain, followed by the S&P 500 with its strong 0.67% rise, and the Nasdaq Composite with its 0.33% rise. The small cap-heavy Russell 2000 index saw very strong gains, with it topping 1.32% during market hours. The VIX volatility index fell 6.9%, as stocks remained largely stagnant for most of the day leading up to the Federal Reserve announcement.
Global markets saw mixed results as the world observed the American central bank's pivotal decision today. In Europe, the British FTSE moderately rose, while the French CAC and the German DAX mildly fell, though rising slightly at the end of the day. In Asia, The Nikkei and Hang Seng rose slightly, while the SSE Composite fell. Precious metals like gold and silver surged in valuation today as a weaker dollar looms, causing some buying pressure. Meanwhile cryptocurrencies receded, with Bitcoin and Ethereum falling by several percentage points as of this evening.
Stocks saw massive gains at the end of the day, however long it lasted, due to the Federal Reserve's decision to cut rates by 25 basis points, a crucial decision following two previous rate cuts by the bank since September. Though, while investors were certainly satisfied, the news was very customary, as betting odds place even a modest rate cut at a very high likelihood.
The Magnificent Seven, after previously falling earlier this week, made some modest gains, with Google rising 1.02%, Amazon 1.69%, and Tesla 1.39%. The other members either stagnated or fell, especially Microsoft, which announced large price hikes to Microsoft 365 & other programs for all users, especially for Office subscriptions.
Oracle tanked by just under 11% in after hours trading as its Q2 earnings report showed great weakness in revenue gains, with revenue falling 0.55% below expectations, and the rising costs of artificial intelligence investments causing fears of bloating and debt-accumulation.
