The day Wall Street soared: How Nvidia and the Fed sparked a record rally
There’s an energy surging through Wall Street. By midday, the S&P 500 had already hit a history-making high, and traders on the floor were abuzz with one topic: the Nvidia-Intel chip deal. This Friday, the US stock market wasn’t just experiencing a technical rebound, it was witnessing a pivotal moment shaped by action and optimism.
After months of cautious trading, something finally shifted. The catalyst? The Federal Reserve’s decision to cut rates by a quarter point, paired with whispers of further cuts to come. Add in Nvidia’s spectacular $5 billion investment in Intel, and suddenly two powerful narratives converged, sending waves through tech, industrials, and communication services alike.
Chips, cuts and chart-toppers
“Markets are greedy. It’s already discounted 25 basis points. If people are buying because they expect 50, well, that’s not going to happen,” said Jake Dollarhide, chief executive of Longbow Asset Management in Tulsa, Oklahoma, highlighting how quickly investor expectations can shape direction. His remark captured a mood both jubilant and wary.
Intel’s shares leapt by 23%, the strongest single-day rally since 1987. Nvidia, meanwhile, climbed 3.5% news of their tie-up electrified the entire semiconductor sector, lifting the broader index by 3.6%. Analyst Daniel Ives at Wedbush Securities called it “a game-changer deal for U.S. tech,” noting that the partnership “marks a new era for chip innovation and industrial leadership”. For market observers, these numbers weren’t just statistics; they were signals of renewed confidence.
CrowdStrike saw its own 12.8% rally on solid long-term guidance, while Palantir and Coinbase jumped as investors continued to chase AI and data firms. Small-caps weren’t left behind, with the Russell 2000 hitting record levels as easing borrowing costs encouraged fresh inflows.
Optimism meets caution
Yet, for all the excitement, experts reminded traders not to lose sight of economic reality. Fed Chair Jerome Powell warned, “There is no risk-free path,” referencing persistent inflation and a sluggish labour market even as the Fed signalled more cuts ahead. Mohamed Malek, a market strategist, added, “I don’t think I’ve seen anything as significant a growth or expansion opportunity as AI, but nothing is permanent in the market. There will come a day when momentum will fade or be overshadowed by economic conditions”.
The story of the day? Tech took the lead, monetary policy added fuel, and optimism prevailed, at least for now. Even as futures dipped after an early surge, the sense was clear that Wall Street is on the cusp of another transformation.
Sceptics may point to softer job numbers and the unpredictable impact of global trade talks, but for today, the market is telling a story of new highs and bold bets. With the S&P 500 up 16.5% year-on-year and 3.9% month-on-month, Wall Street’s rally isn’t just about numbers, it’s about narrative. And right now, that narrative is bullish, bold and primed for the next chapter.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
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Table of Contents
There’s an energy surging through Wall Street. By midday, the S&P 500 had already hit a history-making high, and traders on the floor were abuzz with one topic: the Nvidia-Intel chip deal. This Friday, the US stock market wasn’t just experiencing a technical rebound, it was witnessing a pivotal moment shaped by action and optimism.
After months of cautious trading, something finally shifted. The catalyst? The Federal Reserve’s decision to cut rates by a quarter point, paired with whispers of further cuts to come. Add in Nvidia’s spectacular $5 billion investment in Intel, and suddenly two powerful narratives converged, sending waves through tech, industrials, and communication services alike.
Chips, cuts and chart-toppers
“Markets are greedy. It’s already discounted 25 basis points. If people are buying because they expect 50, well, that’s not going to happen,” said Jake Dollarhide, chief executive of Longbow Asset Management in Tulsa, Oklahoma, highlighting how quickly investor expectations can shape direction. His remark captured a mood both jubilant and wary.
Intel’s shares leapt by 23%, the strongest single-day rally since 1987. Nvidia, meanwhile, climbed 3.5% news of their tie-up electrified the entire semiconductor sector, lifting the broader index by 3.6%. Analyst Daniel Ives at Wedbush Securities called it “a game-changer deal for U.S. tech,” noting that the partnership “marks a new era for chip innovation and industrial leadership”. For market observers, these numbers weren’t just statistics; they were signals of renewed confidence.
CrowdStrike saw its own 12.8% rally on solid long-term guidance, while Palantir and Coinbase jumped as investors continued to chase AI and data firms. Small-caps weren’t left behind, with the Russell 2000 hitting record levels as easing borrowing costs encouraged fresh inflows.
Optimism meets caution
Yet, for all the excitement, experts reminded traders not to lose sight of economic reality. Fed Chair Jerome Powell warned, “There is no risk-free path,” referencing persistent inflation and a sluggish labour market even as the Fed signalled more cuts ahead. Mohamed Malek, a market strategist, added, “I don’t think I’ve seen anything as significant a growth or expansion opportunity as AI, but nothing is permanent in the market. There will come a day when momentum will fade or be overshadowed by economic conditions”.
The story of the day? Tech took the lead, monetary policy added fuel, and optimism prevailed, at least for now. Even as futures dipped after an early surge, the sense was clear that Wall Street is on the cusp of another transformation.
Sceptics may point to softer job numbers and the unpredictable impact of global trade talks, but for today, the market is telling a story of new highs and bold bets. With the S&P 500 up 16.5% year-on-year and 3.9% month-on-month, Wall Street’s rally isn’t just about numbers, it’s about narrative. And right now, that narrative is bullish, bold and primed for the next chapter.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
Ready to earn on every trade?
Invest in 11,000+ US stocks & ETFs