US stock futures jumped on Thursday after the Federal Reserve returned to easing interest rates and signaled further cuts are coming, while a Nvidia (NVDA) lifeline for Intel (INTC) boosted spirits.
Dow Jones Industrial Average futures (YM=F) rose 0.7%, while those on the S&P 500 (ES=F) moved 0.8% higher. Contracts on the tech-heavy Nasdaq 100 (NQ=F) led with a 1.2% gain, taking another leg up as Nvidia (NVDA) said it plans to take a multibillion-dollar stake in Intel (INTC).
Shares in Intel surged almost 30% in premarket trading as investors welcomed Nvidia’s $5 billion investment in the struggling US chipmaker. But the partnership move stopped short of offering Intel a crucial manufacturing deal.
More broadly, markets are shaking off initial hesitation that dragged on stocks after the Fed reduced rates by a quarter percentage point on Wednesday. While its “dot plot” signaled that two more cuts are likely in 2025, Fed Chair Jerome Powell’s comment that high inflation and a weak labor market leave “no risk-free path” dented confidence.
Investors will get more insight into the jobs landscape with the release of weekly jobless claims figures on Thursday.
Stocks are eyeing new highs after slipping from records in the runup to the Fed’s rate decision. If premarket gains hold, the S&P 500 (^GSPC) will cross 6,700 at the open, after closing above 6,600 for the first time to start the week. The three major US indexes have risen in September so far, bucking a historically tough month for stocks.
On the corporate front, FedEx (FDX) will report its quarterly results after the bell. Analysts expect the delivery giant’s profit to take 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. These packages account for about three-quarters of duty-free sub-$800 shipments to US each year, they said.
Read more: The latest on Trump’s tariffs
Trump is on a state visit to the UK, where he dined with tech and finance executives at Windsor Castle. Trump and Prime Minister Keir Starmer are set to meet on Thursday amid efforts to nail down deals on tech, energy, and digital assets. In particular focus for the US and the UK is boosting ties in AI, with Microsoft (MSFT) and Nvidia (NVDA) pledging to make investments.
LIVE 7 updates
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Nvidia bets big on Intel, sending its stock soaring
Nvidia (NVDA) said Thursday that it plans to invest $5 billion in Intel (INTC), throwing its weight behind the beleaguered chipmaker but holding off from making a crucial manufacturing order.
The move comes just weeks after the Trump administration pushed through a deal for the US government to take a significant stake in Intel.
Reuters reports:
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Fed’s Powell warns: ‘There are no risk-free paths now’
When the labor market was stronger, the Fed had the time and the focus to lean into its inflation-fighting mandate. But that phase has now ended, notes Yahoo Finance’s Hamza Shaban.
He reports in today’s Morning Brief:
Read more here.
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Moody’s flags risks in Oracle’s $300 billion AI contracts
Moody’s Ratings has flagged several potential risks in Oracle’s (ORCL) $300 billion worth of recently signed artificial intelligence contracts.
But the ratings agency stopped short of taking ratings action against the software giant, whose shares stepped about 1.5% higher in premarket trading amid broader stock gains.
Reuters reports:
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The takeaway from Meta Connect
I awoke today to two things.
One, videos of President Trump hanging with King Charles in the UK. And two, Meta (META) CEO Mark Zuckerberg playing with his new AI glasses on stage at the company’s Connect event. What a way to start my reporting day!
While Zuck’s new tech didn’t work perfectly on stage, what he showed off was impressive — especially after the dud that was Apple’s (AAPL) iPhone 17 reveal.
JP Morgan analyst Doug Anmuth agrees on Meta:
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Disney shares steady after pulling ‘Kimmel Live’
Disney (DIS) stock is little changed on Thursday after the media giant’s ABC network took “Jimmy Kimmel Live!” off air indefinitely, responding to a backlash over remarks on the killing of Charlie Kirk.
The move followed a warning by Nexstar Media (NXST) that it would pull the late-night talk show from its network of affiliates. FCC Chairman Brendan Carr also hinted at a risk to ABC broadcast licenses if no action was taken over Kimmel’s remarks around the death of Republican activist Kirk.
Bloomberg reports:
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Oil and gas producer Santos erases $2 billion in value following third failed sale
Bloomberg reports:
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Oil prices hold steady following Fed’s rate cut
Oil prices held overnight Wednesday following the Fed’s expected rate cut. Investors are eyeing further rate cuts towards the end of the year in the hopes that lowered borrowing costs leads to a boost in demand.
Reuters reports:
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Read more: The latest on Trump’s tariffs
