U.S. stock futures soared Thursday following the Federal Reserve’s decision to ease interest rates and indicate that more cuts may be on the horizon. Futures for the Dow Jones Industrial Average rose by 0.7%, while those for the S&P 500 gained 0.8%. Notably, contracts linked to the tech-heavy Nasdaq 100 surged by 1.2%, buoyed by Nvidia’s announcement of a substantial multimillion-dollar investment in Intel.
In premarket trading, Intel shares jumped nearly 30% as investors reacted positively to Nvidia’s commitment of $5 billion to the struggling chip manufacturer. However, it is important to note that this partnership did not encompass a vital manufacturing deal, which left some expectations unmet.
Despite initial trepidation following the Fed’s decision to lower rates by a quarter percentage point on Wednesday, markets began to regain momentum. The Fed’s dot plot suggested that two additional cuts could come in 2025, but Chair Jerome Powell tempered enthusiasm by stating that high inflation and a sluggish labor market create “no risk-free path” for the economy. This cautious message added to the uncertainty surrounding market conditions.
Investors are also bracing for insights into the employment sector, with weekly jobless claims figures being released on Thursday. Following the Fed’s rate cuts, stocks have increasingly targeted new highs, aiming to overcome previous dips. If the premarket gains persist, the S&P 500 is projected to surpass the 6,700 mark at the opening bell, after previously closing above 6,600 for the first time at the beginning of the week. The main U.S. stock indexes have experienced upticks so far in September, demonstrating resilience during a month historically known for challenges in the market.
On the corporate side, FedEx is scheduled to report its quarterly earnings after the market closes. Analysts predict the delivery company’s profits may be adversely affected by the recent termination of the “de minimus” tariff exemption on low-value packages from China and Hong Kong—these packages represent a significant portion of duty-free shipments into the U.S. annually.
In a broader international context, President Trump is currently visiting the UK, convening with tech and finance leaders at Windsor Castle. He is set to meet with Prime Minister Keir Starmer, focusing on strengthening ties in technology, energy, and digital assets, particularly in artificial intelligence, with companies like Microsoft and Nvidia pledging investments.
In further corporate news, Nvidia’s investment in Intel has garnered attention, especially as the troubled chipmaker continues to seek revitalization. Meanwhile, Moody’s has raised concerns over potential risks linked to Oracle’s recent signing of contracts valued at $300 billion in artificial intelligence.
On the entertainment front, Disney’s stock remained stable as the company pulled “Jimmy Kimmel Live!” off the air indefinitely, following backlash over controversial remarks regarding a recent incident involving a Republican activist.
Oil prices also remained steady after the Fed’s rate cut, as investors express optimism that reduced borrowing costs could lead to increased demand in the oil market, reflecting broader investor sentiment amid evolving economic landscapes.
