Stock market today: Nasdaq, Dow, S&P 500 futures jump after Fed signals more cuts, Nvidia bets on Intel

US stock futures, led by the Nasdaq 100, jumped after the Federal Reserve signaled further interest rate cuts and Nvidia announced a $5 billion stake in Intel, driving Intel shares up nearly 30% premarket. This market rally positions the S&P 500 to potentially cross 6,700, defying historical September trends. Investors are also monitoring upcoming weekly jobless claims and FedEx's Q3 earnings, which are expected to reflect a profit impact from changes to "de minimus" tariff exemptions on packages from China.

Analysis

US equity futures are indicating a strong market open, with the tech-heavy Nasdaq 100 leading with a 1.2% gain, followed by the S&P 500 at 0.8% and the Dow at 0.7%. This positive sentiment is driven by two key factors: the Federal Reserve's dovish turn and a significant corporate development in the semiconductor sector. The Fed's quarter-point rate reduction and its "dot plot" signaling two further cuts in 2025 have provided a clear tailwind for risk assets, although Chair Powell's comment on the "no risk-free path" due to inflation and labor market weakness introduces a note of caution. In parallel, Nvidia's announcement of a planned $5 billion stake in Intel has caused Intel's stock to surge nearly 30% in premarket trading. However, it is crucial to note that this partnership stops short of a manufacturing deal, a key element for Intel's strategic turnaround. This market rally positions the S&P 500 to potentially open above the 6,700 level, defying September's historical underperformance. Investors are now awaiting weekly jobless claims for further economic insight, as well as quarterly results from FedEx, where profits are expected to be negatively impacted by the termination of the "de minimus" tariff exemption on packages from China.

Key Decisions for Investors

• Investors should view the Nvidia-driven surge in Intel's stock with caution, as the $5 billion investment does not currently include a strategic manufacturing agreement, which remains a critical component of Intel's long-term recovery thesis.
• While the Federal Reserve's dovish pivot is a clear positive for equities, investors should monitor upcoming jobless claims and inflation data closely, as any significant economic deterioration could challenge the signaled rate cut trajectory for 2025.
• Ahead of FedEx's earnings report, positions should be assessed in light of the expected profit headwind from the cessation of the 'de minimus' tariff exemption, which directly impacts a significant portion of its international package volume from China.
• The outperformance of the Nasdaq, fueled by the NVDA/INTC news, suggests continued momentum in the technology sector, but also highlights the need to manage concentration risk in tech-heavy portfolios.