The Wall Street rally gained momentum Thursday as tech stocks surged, propelling the S&P 500 toward another all-time high. Nvidia (NASDAQ:NVDA) and Intel (NASDAQ:INTC) were at the center of the action, following news of a $5 billion investment and partnership deal between the two chipmaking giants.
The S&P 500 rose 0.4%, on track to surpass the record it set earlier in the week. The Nasdaq composite climbed 0.8%, driven by strong performance from technology shares. Meanwhile, the Dow Jones Industrial Average slipped slightly, down 17 points, or less than 0.1%, as of early morning trading.
Tech Giants Power the Rally
Intel stock skyrocketed 26%, marking what could be its best day since 1987, after Nvidia confirmed plans to buy $5 billion worth of Intel shares. This partnership will focus on developing custom chips for data centers and PCs, an announcement that gave both companies a sharp boost. Nvidia also gained 2.5%, cementing its role as the most valuable U.S. company and the strongest driver of the Wall Street rally.
The collaboration is being viewed by investors as a transformative deal that strengthens Nvidia’s dominance in artificial intelligence while giving Intel a lifeline amid years of declining market position.
Economic Data Lifts Market Confidence
Beyond tech stocks, investors found optimism in fresh economic reports. Manufacturing growth in the mid-Atlantic region exceeded expectations, signaling resilience in the industrial sector. At the same time, unemployment claims came in lower than economists had forecast, easing concerns after the previous week’s jump to a four-year high.
These positive signals helped push Treasury yields higher, with the 10-year yield climbing to 4.12% from 4.06%. The move reflected renewed confidence in economic growth and a reassessment of interest rate expectations.
Federal Reserve Cuts Rates Amid Challenges
The Federal Reserve cut its benchmark interest rate this week for the first time in 2025, citing a slowdown in the labor market. Fed Chair Jerome Powell noted that the central bank faces a difficult balancing act: inflation remains stubbornly high while job growth is weakening.
The Fed signaled the possibility of more rate cuts ahead, which has fueled optimism in markets. However, Powell cautioned that policy adjustments could shift quickly if economic conditions change. For investors, this means the Wall Street rally could face volatility if expectations for continued rate cuts are not met.
Winners and Losers Beyond Tech
Several other companies saw notable stock movements during Thursday’s session:
-
Novo Nordisk (NYSE:NVO): U.S.-listed shares climbed 5.5% after a study showed its once-daily Wegovy pill significantly aided weight loss. Additionally, its diabetes drug Ozempic demonstrated heart health benefits.
-
Cracker Barrel (NASDAQ:CBRL): Shares slipped 4.1% after missing profit expectations and issuing weaker-than-expected revenue guidance.
-
Darden Restaurants (NYSE:DRI): The parent company of Olive Garden tumbled 8.8% after reporting disappointing earnings, despite slightly raising its revenue forecast.
-
Walt Disney (NYSE:DIS): Shares dipped 0.8% following controversy over its ABC network’s suspension of Jimmy Kimmel’s late-night show after inflammatory comments sparked backlash.
Global Market Moves
Global stock markets delivered a mixed picture. European indexes edged higher, with London’s FTSE 100 up 0.1% after the Bank of England kept interest rates steady. In Asia, South Korea’s Kospi gained 1.4%, while Hong Kong’s Hang Seng fell 1.4%.
The bond market also saw notable activity, with the 10-year Treasury yield’s rebound above 4% highlighting investor recalibration around Fed policy and inflation risks.
Outlook for Investors
The Wall Street rally shows no signs of slowing, though risks remain. Optimism surrounding Nvidia and Intel’s landmark deal, coupled with encouraging economic data, has lifted investor sentiment. Still, questions about the Federal Reserve’s next moves and stretched stock valuations could test the market’s resilience in the months ahead.
For now, Wall Street’s trajectory remains pointed toward new records, with technology stocks leading the charge into the next phase of market growth.
Featured Image – Freepik
