“Equities climbed on Fed momentum; tech surged, while materials and energy traded cautiously.”

Market Recap

U.S. stocks closed higher Thursday after the Federal Reserve cut rates by 25 basis points and signaled the possibility of more easing later this year. Technology led the rebound, with semiconductors posting outsized gains that helped offset a more uneven performance across other sectors. Coming a day after markets struggled to find direction, today’s session showed renewed conviction, particularly in growth-sensitive names.

Dow Jones Industrial Average: +0.4%
S&P 500: +0.6%
Nasdaq Composite: +1.1%

Fed Moves & Market Takeaway

“We cut rates as a risk-management move… remaining data-dependent,” Fed officials said, pointing to cooling labor markets.

The Fed lowered its benchmark federal funds rate by a quarter point to 4%, marking its first reduction since December. Policymakers stressed the move was precautionary, aimed at addressing softer labor conditions while acknowledging inflation remains above target.

Officials left the door open to two additional cuts before year-end, noting that the pace of easing will depend heavily on economic data. Markets now see a strong chance of another cut in November.

While bond yields ticked higher intraday, equities ultimately stabilized, with investors embracing the Fed’s signal that policy is tilting toward support rather than restraint. The contrast with yesterday’s range-bound trade underscored how swift sentiment can shift once a clear policy signal is delivered.

Stocks on the Move

Intel (INTC): +24%
- Intel surged after Nvidia disclosed a $5 billion investment, widely interpreted as an endorsement of Intel’s AI and data center strategy. The news ignited a rally across the semiconductor space, highlighting how capital flows are accelerating into AI infrastructure.
Nvidia (NVDA): +3.5%
- Nvidia extended gains on the Intel announcement and continued AI momentum. The stock’s strength helped lift the broader technology complex, which had struggled in the prior session.
CrowdStrike (CRWD): +13%
- Cybersecurity stocks were active after CrowdStrike issued an upbeat forecast for recurring revenue growth. The move reflects both strong corporate demand and investor appetite for defensive growth themes in a shifting policy environment.
Nucor (NUE): -6%
- Nucor declined after trimming its third-quarter earnings outlook, a signal of softness in materials demand. The stock’s move weighed on the broader steel sector and served as a reminder that industrial cyclicals remain vulnerable to cost and demand pressures.
Novo Nordisk (NVO): +6%
- Novo Nordisk advanced following trial results showing its diabetes and weight-loss drug reduced cardiovascular risks. The development underscored the market’s enthusiasm for blockbuster therapies in healthcare, with spillover interest across the pharmaceutical space.

Market Tone

Thursday’s session contrasted with the indecision of the prior day. The Fed’s clear policy signal allowed growth-sensitive names to reassert leadership, while financials and cyclicals delivered mixed results. Banks in particular face pressure from lower net interest margins, even as looser monetary policy supports overall risk sentiment.

Treasury yields ended marginally higher and the dollar softened, reinforcing the theme of a shifting policy backdrop. Equity volumes rose late in the day as investors positioned ahead of upcoming economic releases.

The question now is whether today’s rally has legs, or whether it proves to be a short-term response to the Fed’s dovish pivot.

Key Takeaways

The Fed delivered its first rate cut of 2025, tilting policy toward accommodation while retaining a data-dependent stance.
Equities gained with the Nasdaq leading, powered by semiconductors and AI-related momentum.
Financials and cyclicals were mixed as investors weighed rate cut benefits against sector-specific challenges.
Treasury yields and the dollar sent a mixed signal, highlighting market uncertainty over the speed of future easing.
Compared to yesterday’s indecision, today’s action showed clearer direction, though sustainability remains in question.

Tomorrow’s Watchlist

8:30 AM (ET) - Initial Jobless Claims

Why It Matters: Labor data will be critical in shaping the Fed’s next steps; weaker claims could reinforce the case for further easing.

8:30 AM (ET) - CPI / Inflation Metrics

Why It Matters: Inflation remains the pivotal factor; any surprise could alter expectations for the Fed’s pace of cuts.

Ticker Watch

Semiconductors (Intel, Nvidia, AMD, Micron)

After a broad rally today, follow-through in semis will determine if AI-driven momentum continues to lead markets.

Closing Bell: Rate Cut Sparks Rotation into Tech