S&P 500, Nasdaq hit fresh records as tech rebound leads post-Fed rally

Wall Street opened higher on Thursday, with investors piling back into technology stocks a day after the Federal Reserve delivered a quarter-point rate cut and signaled that more easing lies ahead.

The S&P 500 rose 0.4% to a fresh all-time high shortly after the open, while the Nasdaq Composite jumped 0.8%, also setting a record. The Dow Jones Industrial Average, however, lagged, slipping about 18 points, or less than 0.1%.

The gains mark a reversal from Wednesday’s volatile session, when the S&P 500 and Nasdaq closed lower despite the Fed’s widely anticipated rate cut. Fed Chair Jerome Powell described the move as “risk management”, signaling caution about the pace of future cuts. Policymakers now project two more reductions in 2025 and just one in 2026 — fewer than markets had priced in.

Key Highlights from Market Movers:

Intel (INTC) is the standout across S&P 500 and Nasdaq, soaring ~25%, after Nvidia’s $5 billion co-development investment. This is one of Intel’s biggest single-day gains in years, making it the market story of the day.

Nvidia (NVDA), while up a more modest ~1.9% in the Dow, is also a driver. Its strategic investment not only boosts its own stock but also sets off halo gains across the chip ecosystem.

CrowdStrike (+9–10%), Synopsys (+8%), KLA (+6%), Applied Materials (+5%), Micron (+4%), Lam Research (+4%), ASML (+5.7%), ON Semi (+3.5%), Cadence (+3%).

This shows broad strength in AI, cybersecurity, and semiconductor design stocks — confirming that tech leadership is back after the Fed.

Palantir (+3.5%) — another AI-linked name — is also part of the momentum.

Nvidia leads, followed by Salesforce (+1.3%) and Caterpillar (+0.4%). The rest (GS, IBM, UNH, Nike, Merck, AmEx) are flat-to-marginal.

Fresh data on Thursday showed the labor market easing back into balance. Weekly jobless claims fell to 231,000 for the week ending Sept. 13, down sharply from the prior week’s spike and below forecasts. Continuing claims also edged down to 1.92 million, easing concerns about a sudden rise in layoffs.

Despite Wednesday’s dip, both the S&P 500 and Nasdaq are on track for weekly gains — up 0.7% and 1.5% respectively — setting up the S&P for its sixth positive week in seven. The Dow is up 0.3% so far this week.

Global Markets

The Bank of England voted 7–2 to hold interest rates steady at 4%, after lowering them by 25 basis points in August. Officials cited persistent price pressures alongside slowing wage growth and flat GDP, while also scaling back the pace of quantitative tightening to £70 billion from £100 billion over the next year. The pound was little changed after the decision.

European equities climbed in response, with the pan-European Stoxx 600 up 0.8% by mid-session in London. Banking stocks ticked higher, while pharmaceuticals outperformed with Novo Nordisk jumping over 5% on positive weight-loss pill trial results and Zealand Pharma rallying after a Deutsche Bank upgrade. In Asia, Japan’s Nikkei 225 touched a record high, gaining 1.1% on strength in real estate and technology shares.

Despite Wednesday’s setback, U.S. benchmarks remain on pace for weekly gains. The S&P 500 is up 0.7% so far this week, while the Nasdaq has added 1.5%, positioning for its third straight weekly advance. The Dow is up 0.3% for the period, underscoring the degree to which Wall Street’s momentum is being powered by tech.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.