On Thursday, Wall Street hit new all-time highs, thanks to a big rise in technology stocks led by Nvidia and Intel after the two companies announced a $5 billion investment partnership. Intel’s Strongest Performance marking a 22.8%, the biggest one-day gain since 1987, as the partnership aims to create cutting-edge solutions for data centres and personal computers. The S&P 500 rose 0.5% to a new high, marking its third straight positive week. The Dow Jones rose 0.3% and the Nasdaq rose 0.9%, as the Federal Reserve’s recent interest rate cut made people feel more positive.
Wall Street set new records on Thursday as Nvidia and Intel led a rise in technology companies after announcing a $5 billion investment.
The Standard & Poor’s 500 index increased 0.5% and is on course for its third consecutive positive week. The Dow Jones industrial average rose 124 points, or 0.3%, while the Nasdaq composite gained 0.9%. All three achieved all-time highs.
Intel’s shares climbed 22.8%, its highest day since 1987, after Nvidia announced plans to acquire $5 billion of the chipmaker’s stock. It is part of a cooperation in which the partners will create solutions for data centres and personal PCs. Nvidia rose 3.5% and was by far the most powerful influence in raising the S&P 500 since it is Wall Street’s most valued firm.
Intel’s Strongest Performance
Intel’s stock posted its largest one-day rise since 1987, rising 22.8% to close at $30.57 after Nvidia said it would invest $5 billion in the chipmaker as part of a strategic agreement to produce better solutions for data centres and personal PCs. This rally not only lifted Intel’s market capitalisation to $133 billion, but it also helped the entire market climb. For example, Nvidia’s shares climbed 3.5% to $176.24. This indicates how the partnership may help Intel recover from recent challenges and create AI infrastructure.
Meanwhile, encouraging economic news pushed Treasury rates higher in the bond market, including one indicating that fewer Americans claimed for jobless benefits last week than predicted.
That might signal that the rate of layoffs is moderating, which was reassuring after the previous week’s statistics showed a startling jump to a four-year high. To aid the employment market, the Federal Reserve reduced its key interest rate for the first time this year on Wednesday.
The Fed also hinted that further cuts might be on the road, while Chair Jerome Powell cautioned that the Fed is in a fragile situation and may need to alter direction rapidly. That’s because the economy is in an odd predicament, with the employment market stagnating while inflation remains persistently high.
The Fed is in charge of repairing both, but it only has one tool. And helping one by moving interest rates frequently harms the other in the short run.
On Wall Street, expectations are strong that the Fed will continue to decrease interest rates, and an unexpected pause may send markets plummeting. Critics argue that stock prices have already risen too high and grown too costly, owing in part to large wagers on more interest rate decreases.
On Wall Street, smaller stocks took the lead. They might benefit the most from lower interest rates, and the Russell 2000 index of tiny stocks rose 2.5% to hit all-time highs with its larger competitors. It surpassed its previous record, established in 2021.
Stocks in the cryptocurrency business surged, with gains of 7% for Coinbase Global, 20.7% for Bullish, and 7.2% for Circle Internet Group. Bitcoin surged beyond $117,500 after the Fed reduced interest rates.
Novo Nordisk’s shares rose 6.3% in the United States after the Danish firm claimed a recently published research found that its once-a-day tablet form of Wegovy helped patients lose considerable weight. It also said that their Ozempic medicine lowered the risk of heart attack, stroke, and mortality for patients compared to another therapy for Type 2 diabetes.
The firm that owns Olive Garden and other restaurant chains fell 7.7% on Wall Street after reporting a profit for the most recent quarter that fell short of analysts’ estimates. Darden Restaurants also upped its sales growth prediction for the current fiscal year, although not by substantially more than analysts anticipated.
Live Nation’s stock plummeted 2.8% after the Federal Trade Commission and a coalition of state solicitors general sued its Ticketmaster subsidiary, accusing it of pressuring customers to pay more to attend live events via a number of unlawful means.
Disney Shares Dip as ABC Suspends Jimmy Kimmel After Controversial Remarks
The Walt Disney Co. fell 1.1% after the entertainment conglomerate stated that its ABC television division has halted Jimmy Kimmel’s late-night program indefinitely after remarks he made about Charlie Kirk’s death, prompting a number of ABC-affiliated stations to indicate they would not run the show.
Earlier in the day, FCC Chairman Brendan Carr described Kimmel’s statements as “truly sick” and said that his agency had a good case to hold Kimmel, ABC, and Disney liable for promoting disinformation.
Overall, the S&P 500 advanced 31.61 points to 6,631.96. The Dow Jones industrial average rose 124.10 to 46,142.42, while the Nasdaq composite rose 209.40 to 22,470.73.
After a mixed performance in Asia, European stock markets saw indices rise.
The London FTSE 100 rose 0.2% as the Bank of England kept its main interest rate unchanged.
South Korea’s Kospi rose 1.4%, while Hong Kong’s Hang Seng lost 1.4%, marking two of the world’s largest changes.
In the bond market, the 10-year Treasury yield rose to 4.11% from 4.06% late Wednesday. It’s a big shift after briefly falling below 4% on Wednesday, driven down by predictions that the Fed would continue to decrease interest rates.
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