How Fed Rate Cuts and Intel-Nvidia Deal Pushed Nasdaq & S&P to Record Highs

Wall Street saw a surge in confidence following recent signals from the U.S. Federal Reserve that more interest rate cuts are on the horizon. After trimming rates by a quarter point, the Fed’s dovish outlook helped power both the S&P 500 and the Nasdaq to intraday record highs—tech and semiconductor stocks led the rally.
At the center of the move was Intel, which rocketed after Nvidia revealed a $5 billion investment in the chipmaker, sparking enormous interest in Intel’s turnaround potential. This was Intel’s largest single-day gain since the 1980s. Semiconductors broadly joined the upswing: firms like Applied Materials, Lam Research, and Micron Technology posted strong gains, pushing the semiconductor index to new peaks. Nvidia rebounded from earlier setbacks linked to regulatory concerns over its business in China.
Investors also favored small-caps, with the Russell 2000 climbing as expectations built for multiple rate reductions later this year—in October and December. The Fed described its recent rate cut as a risk management measure, trying to balance easing inflation pressures with warning signs in the labor market. Jobless claims fell recently, reinforcing hope that inflation could cool without a sharp deterioration in employment.
Most sectors of the S&P 500 posted gains, especially those tied to technology and growth themes. Defensive sectors underperformed somewhat, notably staples and energy as margin pressures and weaker global demand weigh. Meanwhile, bond yields edged a little higher, and the U.S. dollar weakened modestly in reaction to the Fed’s dovish tone.
In short, investors are embracing a scenario where monetary policy could become more accommodative. Key economic data points in the coming weeks—like home sales, durable goods orders, and upcoming inflation indicators—are now under the microscope. Keywords such as “Fed rate cuts outlook,” “Intel Nvidia investment,” “US stock market record highs,” “tech sector rally,” and “semiconductor stocks gains” underline the forces driving this market momentum.