U.S. Stocks Edge Higher as Fed Signals More Cuts and Nvidia Invests in Intel

U.S. equities rose modestly on Thursday morning, with Wall Street buoyed by the Federal Reserve’s indication of further rate cuts and Nvidia’s surprise multibillion-dollar investment in Intel. The S&P 500 extended gains past 6,600, while tech stocks helped fuel optimism despite lingering concerns about inflation and labor market weakness.

Market Moves After Fed’s Policy Shift

The benchmark S&P 500 advanced 0.4%, holding above the 6,600 level, while the Nasdaq Composite opened 0.8% higher in early trading. The Dow Jones Industrial Average lagged slightly, dipping by 37 points, but overall market sentiment remained constructive.

The modest rally followed the Fed’s decision to lower interest rates by 25 basis points. Its updated dot plot suggested at least two more cuts are likely in 2025, signaling a sustained easing cycle. Still, Federal Reserve Chair Jerome Powell tempered enthusiasm, warning that elevated inflation pressures and a fragile U.S. job market leave “no risk-free path” for policymakers.

Despite those cautionary remarks, analysts remain upbeat. Many see the potential for the S&P 500 to push beyond 6,700 for the first time, with the Nasdaq and Dow also positioned near their record highs.

Treasury Yields and Crypto Respond

Bond markets reflected cautious optimism, with yields retreating slightly after the Fed’s decision. The 10-year Treasury yield slipped 3 basis points to 4.04%, the 2-year yield eased to 3.52%, and the 30-year bond settled around 4.64%. Lower yields typically support equity valuations, reinforcing the bullish backdrop for risk assets.

Cryptocurrencies also extended gains, building on recent momentum. Bitcoin and other leading tokens rallied after the U.S. Securities and Exchange Commission approved broader listing standards for crypto-based exchange-traded products. The regulator also gave Grayscale the green light to convert its Digital Large Cap fund into an ETF, a decision that market participants viewed as a significant step toward mainstream adoption.

Nvidia’s $5 Billion Bet on Intel

Adding to Thursday’s market excitement, Nvidia revealed plans to invest $5 billion in Intel through the purchase of common stock at $23.28 per share. The deal immediately sparked a surge in Intel shares, which jumped nearly 30% in premarket trading to around $32.20, compared with Wednesday’s close of $24.90. Nvidia shares also gained about 3% on the news.

The agreement will see Intel produce custom-designed x86 CPUs for Nvidia, which plans to integrate them into its AI infrastructure platforms. The two companies will also work together on personal computing and data center chips, marking a rare collaboration between longtime rivals. However, Intel’s foundry business will not be part of the deal.

Competitive Pressures From China

While Nvidia moves to strengthen its U.S. partnerships, competition from China is intensifying. Reports indicate that Huawei Technologies has outlined a new roadmap aimed at challenging Nvidia’s dominance in the AI sector. The Chinese firm is focusing on advanced memory-chip technology tailored for AI accelerators, underscoring the global race to control next-generation computing power.

Outlook

With Wall Street balancing Fed policy shifts, surging tech stocks, and fresh geopolitical competition in the semiconductor space, investors are eyeing a potentially pivotal stretch. If momentum continues, the S&P 500 may test new highs, while developments in both AI hardware and crypto regulation are set to play a larger role in shaping broader market sentiment.