IXIC: Nasdaq Composite Logs Fresh Record. Dow Jones and S&P 500 Join the ATH Party

Records all around! The big three of the US indexes broke out to record territory as the rate-cut rally gained (delayed) momentum Thursday.

🏆 You Get a Record, and You Get a Record

• The Nasdaq Composite index IXIC shuffled to a record closing high Thursday with investors betting on risk assets like the Fed just cut interest rates. And then projected two more cuts by the end of the year.
• Only that it actually happened – and markets celebrated it properly. All three major stock averages in the US notched fresh records. The tech-heavy index added 0.9%, the S&P 500 gained 0.5%, and the Dow Jones Industrial Average climbed 124 points, or 0.3%.
• A rare triple win for stock bros no matter where they’d been sitting – bank shares, consumer stocks, tech companies. It was a rate-cut rally boosted by prospects of more rate cuts on the horizon.

🎙️ Intel in the Spotlight

• The Federal Reserve’s move to slash borrowing costs on Wednesday didn’t initially inspire waves of bidding. Instead, major equities posted a mixed session for the day. Thursday’s rally was a nice delayed reaction but there was also another reason for excitement.
• Intel INTC was a bright spot on the heatmap, bursting higher by nearly 23% thanks to a deal with Nvidia. The AI king said it’s investing $5 billion into the struggling American tech brand and the two will be building data-center and PC products.
• It was Intel’s best day since 1987 and helped push the share price to a 45% year-to-date gain. Still, the stock is lower by roughly 40% over the past five years, signaling that it’s all but missed the AI train. Nvidia stock NVDA added 3.5% on the day.

📢 What Else Is Happening?

• Not all market participants are aligned with the new reality that the Fed is creating. Some view the policy easing as unneeded and even dangerous because inflation has been creeping up. August marked the fourth consecutive month of rising price pressures, up 2.9% year on year.
• Against that backdrop, some say that the Fed might be forced to reverse its rate-cutting campaign if inflation starts gaining at a faster clip. Lower interest rates usually cause price increases, because they make money more affordable.
• On a separate note, the Trump administration turned to the Supreme Court, asking for the removal of Biden-appointed Fed governor Lisa Cook, who’s suing the President, saying he has no authority to fire her.