U.S. stocks traded mixed on Thursday, as investors digested the Federal Reserve’s latest rate cut while the tech sector surged on news of a major Nvidia–Intel partnership.
At 09:35 ET (13:35 GMT), the Dow Jones Industrial Average slipped 12 points, or 0.1%. The S&P 500 gained 22 points, or 0.3%, while the NASDAQ Composite climbed 167 points, or 0.8%.
Intel soars on Nvidia investment
Intel (NASDAQ: INTC) shares jumped 26% after Nvidia (NASDAQ: NVDA) announced a $5 billion investment in the company. The move is part of a broader collaboration between the two chipmakers to develop custom data center and PC products.
The partnership will integrate Nvidia’s AI and accelerated computing strengths with Intel’s CPU and x86 ecosystem, using Nvidia’s NVLink technology. As part of the deal, Intel will produce custom x86 CPUs for Nvidia’s AI platforms, while also developing PC chips with RTX GPU chiplets for high-performance computing.
This announcement follows a recent U.S. government-backed deal, where the Trump administration arranged a multibillion-dollar investment in Intel under the CHIPS and Science Act.
Federal Reserve signals further cuts
The Fed cut its benchmark interest rate by 25 basis points on Wednesday, bringing the federal funds rate to 4.00%–4.25%. It was the first rate reduction since December. Updated projections suggest two more cuts are likely in 2025, as policymakers aim to support a cooling labor market while addressing inflation risks.
Fed Chair Jerome Powell described the move as a “risk-management” step to prevent a sharp rise in unemployment. However, analysts at ING believe the Fed may need to go further, with markets now pricing in two to three additional cuts.
The decision was not unanimous. New Governor Stephen Miran dissented, favoring a deeper 50-basis-point cut, highlighting ongoing debate inside the central bank.
Fresh data showed unemployment claims dropped by 33,000 last week to 231,000, reversing the prior week’s spike. Still, hiring momentum has slowed, with tariffs adding pressure to the labor market.
Other central banks hold steady
The Bank of England left interest rates unchanged at 4%, after five cuts since August 2024. The Bank of Japan is also expected to keep policy on hold at its Friday meeting amid political uncertainty.
Corporate movers
- Novo Nordisk (NYSE: NVO): Shares jumped after late-stage trial results for its obesity pill showed significant weight loss comparable to its Wegovy injection.
- Darden Restaurants (NYSE: DRI): Stock fell as earnings and revenue missed expectations.
- American Express (NYSE: AXP): Shares rose after unveiling upgraded Platinum card perks worth $3,500 annually, though with a $200 higher fee.
- Dupont (NYSE: DD): Dropped after lowering its profit forecast tied to discontinued operations.
- Cracker Barrel (NASDAQ: CBRL): Declined following weak earnings and disappointing full-year guidance.
Oil prices near two-week highs
Crude oil held near recent highs as traders weighed the Fed’s rate cut. Brent futures gained 0.1% to $67.99, while West Texas Intermediate rose 0.1% to $64.06.
Data from the Energy Information Administration showed U.S. crude stockpiles fell sharply last week, as exports hit near two-year highs. However, oversupply concerns and soft fuel demand in the U.S. continued to limit gains.
