September 18th, 2025
Stocks Rebound as Markets Digest Fed Cut
U.S. equities opened higher Thursday, recovering from a mixed reaction to the Federal Reserve’s first interest-rate cut in nearly a year. The tech-heavy Nasdaq, which lagged after Wednesday’s decision, is now leading major indexes thanks to a surge in Nvidia on reports of a joint investment with Intel to develop PC and data-center chips. Rate-sensitive small-cap shares are also extending gains on hopes of further easing through 2025.
The Nasdaq jumped more than 1.1%, while the S&P 500 added 0.6%, rising to new heights to keep a fresh record close in play. The Dow Jones Industrial Average, which includes fewer tech stocks, moved up 0.3%. All three major averages were on pace for record closes
Overseas sentiment was similarly upbeat, with European benchmarks and Japan’s Nikkei advancing, though Chinese markets softened.
Economic Takeaways:
- Treasury yields are edging higher, with the 10-year at 4.11% versus 4.03% earlier this week.
- The dollar is firmer against a trade-weighted basket but still down about 10% year to date.
- Oil continues to hover in the $60–$65 range.
- Initial U.S. unemployment claims dropped to 231,000 last week, unwinding the prior week’s jump to 264,000 that was largely tied to Texas. Continuing claims also slipped to 1.92 million, below the year’s peak of 1.97 million.
- Uncertainty dominated Wednesday’s FOMC meeting. Officials were split on the pace of easing: a slim majority projected three 25-basis-point cuts over the coming months, while a sizable minority anticipated only one or two. Chair Jerome Powell underscored the data-dependent outlook in his press conference. The absence of clear direction may heighten market volatility as investors parse upcoming labor, inflation and growth reports.
- Futures markets currently price an 80%–90% chance of 25-basis-point cuts in both October and December, though stronger job numbers could temper those expectations.
- Markets may be choppy into Friday’s quarterly “triple witching” options expiration. The Cboe Volatility Index (VIX) dipped Wednesday and remains below 15; any uptick could signal mounting uncertainty ahead of the event.
- Mortgage rates are creeping higher after the Federal Reserve cut benchmark interest rates on Wednesday, a counterintuitive but common phenomenon. The average 30-year fixed mortgage rate rose 15 basis points on Thursday to 6.37%, according to Mortgage News Daily, following a 9 basis-point rise on Wednesday after the Fed’s move.
- Bitcoin (BTC-USD) climbed above $117,000 on Thursday, buoyed by a broader market rally following the Federal Reserve’s interest rate cut and the introduction of a streamlined process for approving crypto ETFs. The world’s largest cryptocurrency gained 1.5% after consolidating around the $115,000 level.
- Ethereum’s native token, ether (ETH-USD), also benefited from the market boost, rising more than 2% to exceed $4,600 per token.
- On Wednesday, the Securities and Exchange Commissionstreamlined the approval process for crypto ETFs. Compass Point analysts note the move opens the “floodgates for altcoin ETFs”.
- A new Bank of America report estimates that nuclear energy could represent a $10 trillion market opportunity and potentially provide “the solution to the world’s power shortages.” Shares in [providers] NuScale (SMR) and Oklo (OKLO) are up more than 100% and more than 350% since the beginning of the year, respectively.
Trump Petitions Supreme Court to Remove Fed Governor Lisa Cook
President Donald Trump has asked the U.S. Supreme Court to let him remove Federal Reserve Governor Lisa Cook, escalating a fight with major implications for the central bank’s independence. The Justice Department on Thursday sought to pause lower-court rulings that have allowed Cook to stay on the job after Trump announced her firing over unproven mortgage-fraud allegations, which she denies.
A federal judge found Trump likely lacked legal “cause” and violated Cook’s due-process rights, and an appeals panel upheld that decision, enabling her to participate in this week’s Fed rate cut. Solicitor General D. John Sauer told the justices courts should not review a president’s rationale for firing a Fed governor, while Cook argues the attempt to oust her is politically motivated.
Nvidia Takes Stake in Intel, Launching Collaboration on AI Chips and Custom CPUs
Intel shares surged about 25% on Thursday after Nvidia announced a $5 billion investment for roughly a 4% stake in the U.S. chipmaker. The deal, pending regulatory approval, adds to the $11 billion Intel has already received this year from the U.S. government and SoftBank Group, bringing total new outside capital to $16 billion. Under the agreement, the two companies will jointly develop multiple generations of custom data-center and PC products, with Intel supplying x86 CPUs to be integrated into Nvidia’s AI servers used for applications like ChatGPT.
The move gives Nvidia a deeper foothold in traditional computing while signaling a shift for Intel under new CEO Lip-Bu Tan, who has been cutting costs and shelving expansion plans amid lagging AI and manufacturing efforts. Analysts hailed the partnership as a potential “game changer” for Intel’s CPU business but cautioned that it won’t solve the company’s ailing foundry operations. Intel and Nvidia are holding a joint press conference Thursday afternoon to discuss the deal in detail.
On the Move
- Intel (INTC) soared 28% in pre-market trading after Nvidia agreed to purchase $5 billion of Intel stock at $23.28 per share and the two companies unveiled a multigeneration partnership to co-develop custom data-center and PC products integrating their architectures.
- Nvidia (NVDA) rose 3% in early trade after sliding about 3% Wednesday on reports China had asked firms not to buy its chips. Wednesday’s slump also weighed on rival Broadcom (AVGO). Thursday’s bounce reflects both the Intel news and speculation that Nvidia’s China sales could be discussed in upcoming U.S.–China talks.
- Other large-cap tech names moved higher alongside Nvidia and Intel, including Palantir (PLTR), AppLovin (APP) and Marvell (MRVL). Advanced Micro Devices (AMD), however, dropped more than 4%, pressured by the Nvidia–Intel tie-up’s potential competitive threat.
- Darden Restaurants (DRI) fell 6% pre-market after earnings missed Wall Street estimates despite revenue meeting forecasts; same-store sales rose 4.7%, and the company raised its FY26 revenue outlook. Cracker Barrel (CBRL) lost nearly 7% after missing on EPS, topping revenue forecasts and warning of a 4%–7% traffic decline at long-open stores amid controversy over a proposed logo change.
- Novo Nordisk (NVO) gained 7.6% on positive late-stage trial results for its once-daily obesity pill, showing significant weight loss and tolerability comparable to Wegovy. CrowdStrike (CRWD) rose nearly 5% after its investor day, aided by upbeat 2027 guidance and fresh Wall Street price-target hikes.
- Nike (NKE) advanced 1.8% following an RBC Capital upgrade to “Outperform” on expectations of a steeper revenue recovery. Nucor (NUE) fell 3.8% after warning of earnings declines across all three operating segments, Barron’s reported.
What’s Ahead
This afternoon’s Treasury International Capital report, due around the close of trading, will show the inflows and outflows of capital from abroad.
On the corporate front, FedEx (FDX) will report its quarterly results after the bell. Analysts expect the delivery giant’s profit to see a hit from President Trump’s decision to end the “de minimus” tariff exemption for low-value direct-to-consumer packages from China and Hong Kong.
President Donald Trump set ambitious expectations for his Friday call with Chinese President Xi Jinping, suggesting that a deal over TikTok is nearly finalized. He also indicated hopes for progress on broader trade issues, including tariffs.
Trump spoke about the TikTok agreement in the past tense, even though several details remain publicly unresolved, and emphasized that the final company would be owned entirely by “all American investors.”
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