Stock Market Today - Nvidia’s $5B Intel Bet Lifts Nasdaq to 22,502, S&P 500 at 6,642, Dow 46,162

Nasdaq, S&P 500, and Dow Rally on Fed Rate Cut and Semiconductor Shockwave

The U.S. equity market surged to new highs as monetary policy, corporate deals, and sector rotation collided to create one of the most eventful sessions of 2025. The Nasdaq Composite (^IXIC) soared 1.08% to 22,502.31, leading gains after Nvidia (NASDAQ:NVDA) committed to a $5 billion stake in Intel (NASDAQ:INTC), sending shockwaves across the semiconductor space. The S&P 500 (^GSPC) added 0.64% to 6,642.49, pushing deeper into record territory, while the Dow Jones Industrial Average (^DJI) rose 0.31% to 46,162.52, showing more modest gains due to its lower exposure to mega-cap technology.

Federal Reserve Cuts Rates as Powell Balances Inflation and Labor Market

The Federal Reserve cut its benchmark rate by 0.25 percentage points, the first move lower in nine months, and signaled two additional cuts are likely before year-end 2025. Chair Jerome Powell delivered a stark warning that there are “no risk-free paths now,” emphasizing the challenge of combating inflation while supporting a weakening labor market. Jobless claims fell back to 231,000, down 33,000 from the prior week’s spike, but underlying data still signals hiring momentum is fading.

Treasury yields reflected this tension. The 10-year yield settled at 4.127%, rising on fears the Fed may tolerate inflation above its 2% target. Market futures now price in a 75% chance of a half-point cut by year-end, but Powell’s tone suggested the path forward remains uncertain.

Nvidia Bets on Intel: A Defining Moment for the Semiconductor Industry

Shares of Intel (INTC) exploded higher by 28.73% to $32.05, marking one of the company’s largest single-day gains in decades. The surge was fueled by Nvidia’s $5 billion investment, priced at $23.28 per share, giving Nvidia close to a 4% stake in the chipmaker. The move brings the total external capital flowing into Intel in recent months to $16 billion, including a $9 billion U.S. government stake taken in August at $20.47 per share and SoftBank’s $2 billion commitment. The U.S. government’s investment alone has already generated $4.5 billion in paper profits as Intel’s stock skyrocketed.

Despite the excitement, Nvidia notably refrained from using Intel’s struggling foundry business, a division critical to Intel’s long-term survival. Instead, the agreement will center on joint development of data center and PC processors. This leaves Intel’s manufacturing turnaround in question, as analysts argue the foundry needs an anchor customer like Nvidia, Apple (NASDAQ:AAPL), Qualcomm (NASDAQ:QCOM), or Broadcom (NASDAQ:AVGO) to justify its massive capital expenditures.

The ripple effects were immediate: AMD (NASDAQ:AMD) fell 3.21% to $154.04, and Arm (NASDAQ:ARM) slid more than 4.5%, as investors reassessed competitive dynamics. Meanwhile, Nvidia (NVDA) itself added 3.26% to $175.84, extending its dominance as the market’s most valuable company and cementing its role as the central player in the global AI build-out.

Nasdaq Powers Ahead with Tech-Led Strength

The Nasdaq Composite outperformed, lifted not only by Intel and Nvidia but also by broad momentum across artificial intelligence and cloud-related names. Palantir (NYSE:PLTR) jumped 3.59% to $174.38, Micron (NASDAQ:MU) gained 5%, and Alphabet (NASDAQ:GOOGL) climbed 1% after China dropped its antitrust probe into the company. Meta Platforms (NASDAQ:META) rose 0.91% to $782.78 after unveiling new AI-powered smartglasses at its Connect event.

Not all mega caps joined the rally: Tesla (NASDAQ:TSLA) dipped 0.37% to $424.29, weighed down by margin pressures and muted investor appetite outside AI. Apple (NASDAQ:AAPL) slipped 0.29% to $238.29, reflecting slowing China iPhone demand ahead of the iPhone 17 launch. Still, the Nasdaq’s heavy AI concentration ensured it was the standout index of the day.

S&P 500 and Dow Extend Record Highs on Sector Rotation

The S&P 500 (^GSPC) rose 42.14 points to 6,642.49, marking its sixth positive week in the last seven. Gains were driven by both growth and value sectors as investors repositioned following the Fed’s shift. The Dow Jones Industrial Average (^DJI) added 148.86 points to 46,167.18, supported by industrials and defensives, even as its tech-light composition limited upside compared to the Nasdaq.

The Russell 2000 (^RUT) small-cap index surged 1.52% to 2,444.01, hitting record intraday levels. Historically, small caps outperform following a post-pause rate cut; since 1980, the Russell has delivered 35% average gains, compared to 23% for the S&P 500, according to Canaccord. This suggests a broadening rally beyond mega caps may be underway.

Corporate Movers: Oracle, FedEx, Disney, Darden in Spotlight

Earnings and corporate news added further volatility across individual names. Oracle (NYSE:ORCL) traded at $301.00, nearly flat, after Moody’s flagged counterparty risks in its $300 billion AI contracts, citing concentration in a small group of partners. The ratings agency also highlighted Oracle’s debt-to-EBITDA leverage heading toward 4x.

FedEx (NYSE:FDX), reporting after the close, faces profitability headwinds tied to Trump’s decision to eliminate tariff exemptions for low-value packages from China and Hong Kong. Analysts expect weaker quarterly earnings as shipping costs rise.

Disney (NYSE:DIS) fell 1.24% to $114.66 after pulling “Jimmy Kimmel Live!” from air amid political and regulatory pressures. The move underscored the heightened scrutiny facing media firms, with the FCC warning about potential broadcast license risks.

Darden Restaurants (NYSE:DRI) plunged 8.93% to $190.13 after reporting EPS of $1.97, missing consensus of $2.00. Revenue of $3.04 billion met expectations, but fine-dining weakness offset gains at Olive Garden and LongHorn Steakhouse. Despite raising revenue guidance for 2026 to 7.5–8.5% growth, investors punished the stock.

Energy and Commodities: Oil Soft, Nuclear Booming

Brent crude (BZ=F) slipped 0.69% to $67.48, while WTI (CL=F) traded at $63.95, down 0.16%. The Fed’s easing did little to spark immediate demand, though U.S. EIA data showed crude stockpiles fell sharply last week, hinting at underlying consumption strength.

Nuclear energy stocks continued their meteoric rise, driven by Bank of America’s projection of a $10 trillion global SMR market over the next quarter-century. NuScale Power (NYSE:SMR) is up 100% YTD, while Oklo (NYSE:OKLO) has soared more than 350%, reflecting a broad investor pivot into alternative energy tied to AI-driven power demand.

Crypto Momentum: Bullish and Bitcoin Gain

Bullish (NYSE:BLSH) surged 12.49% to $61.14 after securing a New York BitLicense, a milestone unlocking its U.S. expansion. The exchange, which owns CoinDesk, now operates under licenses in Germany, Hong Kong, and the U.S., positioning it as one of the most regulated institutional crypto platforms globally.

Meanwhile, Bitcoin (BTC-USD) rallied 1.55% to $117,473.76, boosted by the Fed’s pivot back to easing and growing institutional demand. With U.S. ETFs continuing to absorb inflows, Bitcoin remains firmly above the $115,000 support zone, cementing its role as a hedge in a world of falling rates.

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