US stocks extended their rally to new record highs on Thursday as investors digested the Federal Reserve’s rate cut and a blockbuster move in the chip sector. Intel soared after Nvidia unveiled a $5 billion stake in the company, its sharpest single-day gain since 1987, helping lift the Nasdaq and S&P 500 technology sector. Broader sentiment was also lifted by a record close in the Russell 2000, while Fed Chair Jerome Powell’s cautious stance continued to frame expectations for further easing this year.

Key Takeaways:

  • Dow Extends Gains After Fed Cut: The Dow Jones Industrial Average advanced 124.10 points, or 0.27%, to finish at 46,142.42. The blue-chip index built on momentum from the Federal Reserve’s rate cut, supported by strength in chipmakers and a broader rally in cyclical sectors.
  • S&P 500 Pushes to Record Close: The S&P 500 rose 31.61 points, or 0.48%, to 6,631.96, as seven of the 11 sectors advanced. Technology led the gains with a 1.36% jump, fuelled by semiconductor stocks, while consumer discretionary and staples were the main losers.
  • Nasdaq Benefits From Tech Surge: The Nasdaq Composite climbed 209.40 points, or 0.94%, to settle at 22,470.73. Intel’s explosive 22.8% rally and a rebound in Nvidia shares after Wednesday’s pullback helped drive the tech-heavy index higher, with the Philadelphia Semiconductor Index up 3.6%.
  • European Markets Advance as Bank of England Slows QT: European equities closed higher, with the Stoxx 600 up 0.8% as all major indices finished in positive territory. Germany’s DAX rose 1.35%, France’s CAC 40 gained 0.91%, Milan’s FTSE MIB added 0.84%, and London’s FTSE 100 advanced 0.21%. The Bank of England kept its key rate at 4% but slowed the pace of quantitative tightening, reducing gilt sales to £70 billion from £100 billion and shifting issuance towards shorter maturities. Governor Andrew Bailey cautioned that inflation risks remain, even as policymakers nudged up their Q3 growth forecast. UK 10-year gilt yields moved 4 basis points higher as markets adjusted to the slower rundown of bond holdings. On the corporate front, Novo Nordisk surged 6.2% on strong Wegovy trial results, while Zealand Pharma jumped 8% following a Deutsche Bank upgrade. 
  • Asian Markets Mixed as Nikkei Hits Record: Japan’s Nikkei 225 gained 1.13% to a fresh record high, boosted by strength in real estate and technology, with Screen Holdings and Kirin Holdings among the leaders. South Korea’s Kospi added 0.96%, while Hong Kong’s Hang Seng dipped 0.17% and China’s CSI 300 slipped 0.23%. Australia’s ASX 200 fell 0.51% after Santos plunged more than 11% when ADNOC abandoned its $18.7 billion takeover bid. Semiconductor stocks outperformed across the region on reports of Chinese restrictions on Nvidia’s AI chips, with SK Hynix up 5.5%, TSMC rising 0.79%, Samsung Electronics adding 2%, and Tokyo Electron climbing 4.54%. Investors also looked ahead to the Bank of Japan’s policy meeting, where rates are widely expected to remain on hold for now.
  • Oil Prices Ease on Demand Concerns: Brent crude fell 0.63% to $67.52 a barrel, while WTI slipped 1% to $63.75. Traders focused more on signs of weak US demand and rising distillate inventories than on support from lower interest rates. A surprise 4 million barrel build in distillates pressured sentiment further.
  • US Yields Rise After Jobless Claims Drop: The 10-year Treasury yield added 3 basis points to 4.11% after jobless claims fell by 33,000 to 231,000. The 2-year yield rose 2 basis points to 3.57%, while the 30-year yield climbed 5 basis points to 4.73%. Despite the Fed’s quarter-point cut, Powell highlighted a weakening labour market, with unemployment holding near a four-year high at 4.3%.

FX Today:

  • EUR/USD Rejected at Highs as Sellers Cap Rally: EUR/USD closed at 1.1784, down 0.24%, after trading between 1.1885 and 1.1750. The session showed a clear rejection at the highs as sellers stepped in around resistance, reversing the move lower into the close. The pair remains supported by the rising 50-day average at 1.1666, with the 100-day at 1.1562 and 200-day at 1.1119, all pointing higher to preserve the broader uptrend. The sequence of higher lows remains intact, but repeated failures near 1.1850–1.1900 highlight strong overhead supply. The short-term bias has softened from bullish to neutral, with immediate support at 1.1720–1.1700 and the 50-day at 1.1660. A daily close above 1.1850 would be needed to reassert bullish control and open a path toward 1.1950.
  • GBP/USD Drops Back After Reversal From Resistance: GBP/USD settled at 1.3549, down 0.55%, after ranging between 1.3661 and 1.3534. The session formed a strong bearish candle as sellers drove price to the lows, marking a decisive reversal from overhead resistance. Support remains clustered around the 50-day average at 1.3466, the 100-day at 1.3479, and the 200-day at 1.3104, all still trending higher to underpin the broader structure. The rebound from early September lows near 1.3400 had strengthened bullish momentum, but resistance between 1.3660–1.3700 capped progress and shifted bias back toward the downside. Immediate focus is on 1.3500–1.3460, where the rising moving averages converge, while recovery above 1.3600 is required to stabilise and retest resistance. 
  • USD/CHF Stabilises After Bounce From Support: USD/CHF closed at 0.7928, up 0.52%, after trading between 0.7872 and 0.7938. The pair rebounded strongly from recent lows, leaving a firm close above 0.7900 as demand re-emerged around 0.7850. Despite this bounce, price remains capped beneath the declining 50-day average at 0.8015, alongside the 100-day at 0.8092 and 200-day at 0.8462, all reinforcing the broader downtrend. Short-term bias has turned corrective, but the outlook stays negative while price trades below the cluster of averages. Key resistance is at 0.8000–0.8050, while renewed pressure under 0.7850 would expose 0.7800 and extend the downtrend.
  • USD/JPY Pushes Higher but Faces 200-Day Barrier: USD/JPY finished at 147.95, up 0.68%, after ranging between 146.77 and 148.27. The wide bullish candle reclaimed 147.00 and closed near the highs, putting the focus on the 200-day average at 148.61. Price is back above the 50-day at 147.67 and the 100-day at 146.20, tilting near-term momentum to the upside. Higher lows from 145.00 since late August support a constructive bias, though repeated failures ahead of 149.00 continue to cap progress. Immediate resistance sits at 148.30–148.60, where a break higher would unlock 148.90 and 149.40. On the downside, support is seen at 147.70, then 147.20 and 146.80. For now, the short-term outlook is cautiously bullish while above 147.20, though sustained traction over the 200-day is required to confirm a breakout.
  • EUR/GBP Recovers as Bulls Retake Control: EUR/GBP closed at 0.8697, up 0.36%, after trading between 0.8653 and 0.8699. Buyers pushed decisively above the 50-day average at 0.8661, leaving a close near session highs. The 100-day at 0.8575 and 200-day at 0.8478 both trend higher to reinforce the medium-term bullish structure. The cross has been consolidating since mid-August after repeated failures near 0.8720–0.8740, but demand in the mid-0.8600s continues to establish higher lows. Bias has shifted more constructive with today’s rebound, though resistance remains the key hurdle. Immediate support is at 0.8660–0.8650, while a sustained break above 0.8720 would re-establish bullish control and target 0.8770.
  • Gold Retreats After Another Failure Near $3,670: Gold settled at $3,645, down 0.36%, after trading between $3,673 and $3,627. The session showed sellers rejecting another push higher, leaving a tail near the highs. Price remains supported by the rising 50-day average at $3,426, the 100-day at $3,373, and the 200-day at $3,125, all keeping the medium-term trend bullish. Momentum has slowed as repeated attempts into the $3,670–$3,700 area meet resistance, raising risks of near-term consolidation. Support is seen at $3,600 and $3,570, with a break lower exposing $3,500. On the upside, a decisive close above $3,670 would reopen the path toward $3,720–$3,750. 

Market Movers:

  • Intel Soars on Nvidia Stake: Intel jumped 22.8%—its biggest one-day gain since 1987—after Nvidia said it would invest $5 billion and co-develop chips; peers from KLA and ASML to Micron and Marvell climbed as the SOX rose 3.6%.
  • CrowdStrike Pops on AI Update: CrowdStrike rose 12.8% after an investor briefing outlined its AI strategy and fiscal 2027 outlook, prompting at least nine brokerages to lift price targets.
  • 89bio Rockets on Roche Deal: 89bio surged more than 85% after Roche agreed to acquire the company for $3.5 billion, or $14.50 per share.
  • FactSet Slides on Soft Outlook: FactSet fell more than 10% after an EPS miss and a 2026 guidance range ($16.90–$17.60) below consensus.
  • Red Cat Sinks on Stock Offering Plan: Red Cat dropped over 10% after announcing an underwritten public share offering.
  • Darden Restaurants Drops on Guidance: Darden slid 7.7% after forecasting FY2026 adjusted EPS of $10.50–$10.70, with the midpoint below expectations.
  • ARM Slips on Competitive Concerns: ARM weakened more than 4% after news that Nvidia will invest $5 billion in Intel and jointly design chips for PCs and data centres.

Thursday’s record closes reflected a market balancing act between hope over easing financial conditions and the selective nature of corporate momentum. Intel’s historic rally highlighted the transformative power of strategic investment in technology, while the Bank of England’s slower balance-sheet unwind echoed the theme of central banks taking measured steps. At the same time, weakness in consumer sectors, rising yields, and mixed labour signals kept investors cautious. With both policy and corporate catalysts in play, attention now shifts to whether the resilience in equities can extend as rate cuts unfold and global growth challenges remain.