Updated 2 min read
US stocks were on pace for a record close Thursday after the Federal Reserve returned to easing interest rates and signaled further cuts are coming. The Nasdaq Composite (^IXIC) led the gains as Nvidia’s (NVDA) lifeline for Intel (INTC) boosted spirits.
The Nasdaq jumped more than 1.1%, while the S&P 500 (^GSPC) added 0.6%, rising to new heights to keep a fresh record close in play. The Dow Jones Industrial Average (^DJI), which includes fewer tech stocks, moved up 0.3%.
All three major averages were on pace for record closes, while the small-cap index Russell 2000 (^RUT) was also on track for an all-time high close.
Shares in Intel surged more than 25% as investors welcomed Nvidia’s $5 billion investment in the struggling US chipmaker.
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 the Fed’s “dot plot” signaled that two more cuts are likely in 2025, its chair Jerome Powell’s comment that high inflation and a weak labor market leave “no risk-free path” dented confidence.
Weekly jobless claims figures out on Thursday showed further signs of labor market stress. On the upside, the number of Americans filing for unemployment dropped, after surging the previous week. But hiring all but stalled as demand for and supply of workers slowed.
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.
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 17 updates
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Former Trump adviser says US can’t rely on foreign chips as Nvidia invests in Intel
Francisco Velasquez reports:
Read more here.
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Trump sets the stage for his highly-anticipated Friday call with Xi Jinping
Yahoo Finance’s Ben Werschkul reports:
Read more here.
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The Fed’s dual mandate is under new pressure in D.C.
Yahoo Finance’s Jennifer Schonberger reports:
Read more here.
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Bitcoin rises above $117,000 as crypto rally gains steam
Bitcoin (BTC-USD) rose above $117,000 per token on Thursday as the overall market rallied on the heels of the Federal Reserve’s interest rate cut, and a newly revised, streamlined process for issuance of crypto ETFs.
The world’s largest cryptocurrency rose 1.5% after a period of consolidation around the $115,000 level.
Meanwhile, ether (ETH-USD), the native token of ethereum, rose more than 2% to surpass $4,600 per token.
The crypto rally comes after the Federal Reserve cut its fed funds rate by 25 basis points on Wednesday.
Meanwhile, also on Wednesday, the Securities and Exchange Commission streamlined the approval process for crypto ETFs. Compass Point analysts note the move opens the “floodgates for altcoin ETFs”.
“Prior to the announcement, the SEC individually approved each ETF application, which significantly slowed the process for crypto ETF listings,” noted analyst Ed Engel. “Under the new standards, ETF applications will automatically be approved after a defined timeframe, assuming the digital asset meets minimum standards.”
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Mortgage rates tick up following Fed move, though they’re still near 2025 lows
Yahoo Finance’s Claire Boston reports:
Read more here.
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President Trump asks Supreme Court to let him fire Fed governor Lisa Cook
President Trump asked the Supreme Court on Thursday to allow him to fire Fed governor Lisa Cook.
The Justice Department asked the high court to lift a federal judge’s stay, which said Cook could remain in her position for now.
The order blocked Trump’s removal of Cook who was appointed to the position by former President Joe Biden.
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Bullish jumps 12% on key approval for US crypto exchange expansion
Bullish (BLSH) rose 10% on Thursday after the crypto exchange cleared a key milestone necessary for its breakout into the US market.
The company, which also owns the publication CoinDesk, reported its first quarterly results since going public last month on the New York Stock Exchange in a splashy debut.
On the earnings call CEO Tom Farley, former president of the NYSE Group, announced the exchange received a key New York license, critical to its business model expansion.
“While we have already had the ability to operate in many states because of our regulatory approval, we refrained from launching our exchange in the United States until we received the New York State Department of Financial Services BitLicense,” said Farley.
“We received that license yesterday, and we look forward to bringing our exchange and our leading liquidity to the United States imminently, and we believe this to be the largest geographic market by far,” he added.
Bernstein analyst Gautam Chhugani and his team wrote “Bullish remains on track for a successful U.S launch and crypto options rollout (expected Q4’25E) – providing key growth catalysts for the coming quarters.”
“Bullish now holds multiple tier 1 regulatory licenses (German BaFin, Hong Kong SFC and U.S BitLicense) across major crypto markets, strengthening its positioning as global regulated institutional crypto exchange,” he added.
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Nvidia’s planned 4% Intel stake would bring recent investment in chipmaker to $16 billion
Nvidia’s (NVDA) $5 billion planned investment in Intel common shares announced Thursday would represent a 4% stake and bring recent outside investment in the ailing chipmaker to $16 billion.
“This is a game changer deal for Intel as it now brings them front and center into the AI game,” Wedbush analyst Dan Ives wrote in a note to investors Thursday. Intel stock soared more than 25% after the market open Thursday.
In an unusual move, the Trump administration took a 10% stake in Intel in August with a roughly $9 billion investment, and Japanese investment holding company SoftBank Group (SFTBY) made its own $2 billion investment last month.
Still, the Nvidia-Intel deal would not bolster Intel’s ailing manufacturing business as it looks to bring on outside customers, noted Bernstein analyst Stacy Rasgon.
Intel designs chips for data centers and personal computers, and while it has always manufactured its own semiconductors, the company opened up that manufacturing business to outside customers in 2021 under former CEO Pat Gelsinger. Intel has aimed to both compete with Nvidia’s AI chips in its design segment and draw in customers such as Nvidia in its manufacturing business — but both efforts have fallen short.
Intel recently said it would only pursue the development of its new 14A manufacturing process, which would be used to develop cutting-edge chips, if it can bring in such customers.
“But frankly Intel can use the help on the product business just as much given share position in key markets has been bleeding,” Rasgon said in a note Thursday.
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Nasdaq leads US stocks higher at the open
The Nasdaq Composite (^IXIC) led gains in US stocks after Nvidia (NVDA) announced its plans to take a $5 billion stake in Intel (INTC), boosting spirits.
The Nasdaq jumped nearly 0.9%, while the Dow Jones Industrial Average (^DJI) rose 0.1%, paring earlier gains in premarket. The S&P 500 (^GSPC) added 0.4%.
Stocks’ broad gains come after the Federal Reserve returned to easing interest rates yesterday and indicated more cuts are coming.
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Nuclear power could be a $10 trillion market opportunity
Yahoo Finance’s Jake Conley reports:
Nuclear energy represents a $10 trillion potential market opportunity that could hold “the answer to the world’s power shortages,” according to a new report from Bank of America.
Rising demand, combined with strong support from the Trump administration and a public narrative turning positive after years of a dour outlook on the sector, has given a share price boost to companies operating throughout the nuclear sector supply chain in 2025.
“In many ways,” Bank of America analysts wrote, “nuclear energy has been ‘rediscovered’ amid surging electricity demand ignited by the rise of AI/data centers, building electrification, industrial growth, and EVs.”
According to Bank of America, the answer to meeting this demand amid a “rediscovery” of nuclear’s potential benefits may lie in what the bank calls “one of the most consequential energy technologies for the next 25 years”: small modular reactors, or SMRs.
Shares in [providers] NuScale (SMR) and Oklo (OKLO) are up more than 100% and more than 350% since the beginning of the year, respectively.
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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:
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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:
