TheDrop Market Analysis, 12/11/25
- Alexangel Ventura
- 4 days ago
- 1 min read
Key indices set new all-time highs as the Federal Reserve's interest rate cut enticed investors into buying stock.
The Dow Jones Industrial Average led stock gains today with its 1.3% rise, followed closely behind by the S&P 500 index, which grew by a similar amount. However, the tech-heavy Nasdaq Composite fell 0.3%, as Big Tech worries grow from Oracle's weak earnings report.
Gold and silver fell very slightly during trading hours as they correct from their rallies yesterday, while crypto had the opposite: their valuations rose (as of Thursday evening) as they attempt to make recoveries from consecutive losses, and investors see an opportunity to purchase cheaper digital assets.
Markets saw large rises as the Federal Reserve, after weeks of wait, cut interest rates by 25 basis points, causing investors to rejoice. While one more rate cut is in the horizon in early 2026, most likely, the Fed will subsequently take a more cautious approach as inflation remains a hidden problem and is above the Fed's target of 2%. This was what made the rally not as large as previous post-rate-cut rallies, like the one in September and the one in December 2024.
The Magnificent Seven stocks fell in value today, dragging the Nasdaq Composite down below the other two big index funds. These losses were fueled by Oracle's poor Q2 report, which showed lower-than-expected AI demand despite record artificial intelligence infrastructure investments.
