Wall Street Rises on Intel-Nvidia $5B Partnership/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Wall Street moved closer to record highs Thursday as tech giants Intel and Nvidia surged following a $5 billion partnership deal. Strong economic data and Fed rate cuts also buoyed investor confidence. However, restaurant chains and Disney faced setbacks, showing mixed performance across sectors.
Wall Street Update – Quick Looks
- S&P 500 rose 0.4%, nearing another all-time high.
- Nasdaq jumped 0.8%, driven by tech stock momentum.
- Intel soared 26%, its best day since 1987.
- Nvidia rose 2.5%, announcing a $5B investment in Intel.
- Fed cuts interest rates amid slowing job market.
- Fewer Americans filed for jobless benefits last week.
- Novo Nordisk gained 5.5% on weight-loss and diabetes drug results.
- Cracker Barrel fell 4.1%, Darden Restaurants sank 8.8%.
- Disney slipped 0.8%, suspends Jimmy Kimmel’s late-night show.
- 10-year Treasury yield climbed to 4.12%.
Deep Look
Wall Street Inches Toward Record Highs as Intel and Nvidia Lead Tech Rally
Wall Street opened Thursday with strong upward momentum, edging closer to another record high as investors cheered a major tech deal and encouraging signs in the U.S. economy. The S&P 500 rose 0.4% and aimed to surpass its all-time high from earlier in the week. Meanwhile, the Nasdaq composite gained 0.8% and the Dow Jones Industrial Average was down slightly by 17 points, or less than 0.1%.
The market’s main boost came from the tech sector, particularly semiconductor giants Intel and Nvidia. Intel’s stock soared 26%, marking its best single-day performance since 1987, after Nvidia announced it would purchase $5 billion of Intel stock. The move is part of a collaborative venture to co-develop custom products for data centers and PCs, which investors interpreted as a high-confidence bet on Intel’s long-term value.
Nvidia, currently the most valuable company on Wall Street, also climbed 2.5%, lifting the tech-heavy Nasdaq and adding significant weight to the S&P 500’s rise.
Economic Data Supports Optimism
Markets also received a jolt of good news from the economy. A pair of reports revealed that manufacturing activity in the mid-Atlantic region far exceeded expectations, and fewer Americans applied for unemployment benefits than forecasted.
The latter report helped ease concerns sparked by the previous week’s surprising surge in jobless claims, which had reached a four-year high. That sudden spike had raised alarms about the strength of the labor market, prompting the Federal Reserve to cut interest rates for the first time this year on Wednesday.
The Fed signaled that more cuts could follow both this year and into 2026, reflecting a desire to stabilize a labor market that is cooling even as inflation remains sticky. Fed Chair Jerome Powell acknowledged the challenge of the current economic environment, calling it a “precarious position,” with conflicting indicators forcing cautious policy moves.
“The Fed only has one major lever—interest rates—and using it to support jobs risks worsening inflation, and vice versa,” Powell said.
Investors are now heavily betting that more rate cuts are coming. But analysts warn that if the Fed pauses or reverses its strategy, the stock market—already priced for perfection—could react sharply.
Winners: Intel, Nvidia, Novo Nordisk
In addition to Intel and Nvidia, pharmaceutical company Novo Nordisk also saw its U.S.-traded shares rise 5.5% after announcing promising study results. The Danish company reported that its once-daily pill version of Wegovy helped users lose meaningful weight. Another study showed Ozempic reduced cardiovascular risks for patients with type 2 diabetes compared to alternative treatments.
These medical advances continue to position Novo Nordisk as a leader in the growing weight-loss and diabetes markets, attracting strong investor support.
Losers: Restaurants and Disney Face Trouble
However, not all sectors shared in the rally. Cracker Barrel fell 4.1% after the company reported weaker-than-expected profits and issued a lackluster revenue forecast for its upcoming fiscal year. The chain continues to face backlash over its planned logo redesign, adding to its challenges.
Darden Restaurants, owner of Olive Garden and other dining brands, dropped 8.8% following disappointing earnings. While the company did raise its full-year revenue outlook slightly, the increase didn’t meet analyst expectations. The underwhelming performance raises broader concerns about consumer spending in the restaurant sector amid economic uncertainty.
Disney, meanwhile, dipped 0.8% after announcing that its ABC television network suspended Jimmy Kimmel’s late-night show indefinitely. The suspension follows controversial comments Kimmel made about the killing of political commentator Charlie Kirk, prompting multiple ABC affiliates to refuse to air the show.
FCC Chairman Brendan Carr labeled the remarks “truly sick” and warned that the agency may pursue legal action against Kimmel, ABC, and Disney for alleged misinformation.
Global Markets and Bonds
Global markets showed mixed results. European indexes edged higher, with London’s FTSE 100 rising 0.1% after the Bank of England held interest rates steady.
In Asia, South Korea’s Kospi jumped 1.4%, while Hong Kong’s Hang Seng dropped 1.4%, reflecting regional divergence in investor sentiment.
In the bond market, the yield on the 10-year Treasury note jumped to 4.12%, up from 4.06% the previous day. The spike follows a brief dip below 4% on Wednesday, driven by rate cut expectations. Rising yields reflect shifting investor confidence as they recalibrate to the Fed’s evolving policy stance.
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