Wall Street was poised for an upbeat open on Thursday, with U.S. stock futures pointing higher after a volatile midweek session. Futures tied to the Nasdaq 100 climbed 1.1%, suggesting technology names will lead early market momentum.
The spotlight was on Intel (NASDAQ:INTC), which rocketed 30.2% in premarket trade following news of a collaboration with Nvidia (NASDAQ:NVDA). The two chipmakers plan to jointly develop several generations of custom processors for data centers and personal computers. As part of the deal, Nvidia will purchase $5 billion of Intel stock at $23.28 per share. Nvidia shares also advanced 2.7% after recent weakness.
Fresh economic data provided an additional boost. The Labor Department reported that initial jobless claims dropped to 231,000 in the week ending September 13, down from the revised 264,000 the prior week. The decline was steeper than economists’ forecasts for 240,000.
Wednesday’s trading underscored investor caution. After spending much of the session wavering, major indexes swung sharply following the Federal Reserve’s policy announcement. The Dow Jones Industrial Average rose 0.6% to 46,018.32, but the S&P 500 slipped 0.1% to 6,600.35 and the Nasdaq Composite lost 0.3% to 22,261.33.
The Fed delivered a quarter-point cut, lowering the federal funds rate to 4.0%–4.25%. Policymakers projected two additional cuts this year, ending 2025 with rates between 3.50% and 3.75%. However, most officials resisted a deeper cut, with only Governor Stephen Miran advocating a half-point move.
“The strong vote for the 25-basis-point cut suggests that members, while acknowledging that downside risks to the job market have increased, are not panicking about the state of the economy,” noted Mike Fratantoni, chief economist at the Mortgage Bankers Association.
Markets currently see an 87.7% chance of another quarter-point reduction at the Fed’s October 28–29 meeting, according to CME Group’s FedWatch tool.
Sector trends reflected Wednesday’s mixed outcome. Bank stocks climbed, pushing the KBW Bank Index 1.3% higher to a record close, while oil service companies lagged as falling crude prices weighed on the Philadelphia Oil Service Index, which declined 1.1%.
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