U.S. stocks edged up on Thursday morning as Nvidia bet on Intel, with the S&P 500 extending gains above 6,600. Wall Street held onto the upbeat sentiment that followed the Federal Reserve’s signal of further interest-rate cuts.
Summary
- S&P 500 rose 0.4% as the benchmark index looked to set another record high.
- Treasury yields dipped after Federal Reserve’s interest rate cut.
- Nvidia plans to invest $5 billion in struggling chipmaker Intel.
The benchmark S&P 500 climbed 0.4% as it held above the 6,600 mark, while the Nasdaq Composite opened higher with an early 0.8% uptick. The blue-chip Dow Jones Industrial Average, however, hovered 37 points lower as Wall Street aimed to maintain an upbeat picture.
Stocks posted muted gains after the Federal Reserve announced a 25-basis-point interest-rate cut. While the U.S. central bank’s dot plot hinted at high chances of two further rate cuts in 2025, Fed Chair Jerome Powell’s remarks saw bulls hesitate. Notable were Powell’s comments on elevated inflation and a weak U.S. labor market as factors that offer “no risk-free path.”
Despite the Fed chair’s remarks, overall sentiment is bullish, and analysts suggest risk assets could see a new leg up. The S&P 500 is eyeing a run that could take it above 6,700 for the first time. The Nasdaq and Dow, meanwhile, will look to strengthen near their respective record highs.
U.S Treasuries and crypto
Elsewhere, U.S. Treasury yields hovered lower as investors weighed the Fed’s interest-rate decision. The 10-year Treasury yield was down 3 basis points to 4.04%, while the 2-year yield stood at 3.52% after shedding 2 basis points. The 30-year yield hovered around 4.64%, down 3 bps.
Meanwhile, cryptocurrencies also showed bullish continuation signals after notable gains amid big ecosystem related news.
The U.S. Securities and Exchange Commission’s move to approve generic listing standards for crypto exchange-traded products and the nod for Grayscale to convert its Digital Large Cap fund into an exchange-traded fund buoyed Bitcoin (BTC) price and several other coins.
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Nvidia takes $5 billion bet on Intel
All the major U.S. gauges hovered at record highs, and the Nasdaq’s 0.8% uptick came amid news that Nvidia (NVDA) was eyeing a $5 billion stake and chip deal with Intel (INTC).
Nvidia’s multibillion-dollar investment in the U.S.-based chipmaker saw INTC soar nearly 30% in premarket trading, around $32.20, after closing near $24.90 on Wednesday. NVDA gained 3%.
As Nvidia bets big on the struggling U.S. chipmaker, Chinese firm Huawei Technologies has reportedly unveiled a new roadmap as it aims to challenge Nvidia’s dominance. Huawei’s move involves new memory-chip technology designed for AI accelerators.
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