Nvidia's Intel Investment Fuels a Tech Sector Rally

The euro fell against the U.S. dollar on Thursday, retreating from a yearly high, as upbeat U.S. economic data and cautious remarks from Federal Reserve Chair Jerome Powell supported the greenback.

While the policy decision initially lifted risk appetite, Powell’s press conference curbed expectations for aggressive rate cuts.

Fresh economic releases reinforced dollar strength. Initial Jobless Claims fell to 231,000 for the week ending September 13, below forecasts of 240,000 and well under the prior week’s upwardly revised 264,000. Continuing Claims also edged down to 1.92 million.

Meanwhile, the Philadelphia Fed Manufacturing Index surged to 23.2 in September, a sharp rebound from August’s -0.3 and far above expectations of 2.3, pointing to resilient regional activity.

The Fed’s Summary of Economic Projections (SEP) suggested an additional 50 bps of cuts by year-end, leaving rates at 3.6%. Growth forecasts were revised higher to 1.6% from 1.4%, while unemployment projections held at 4.5%.

In Europe, ECB policymakers including Vice President Luis de Guindos, Yannis Stournaras and José Manuel Campa maintained that current rates are appropriate. They highlighted balanced inflation risks but acknowledged that growth prospects remain tilted to the downside.

Gold prices found some support in Asian trading on Friday, halting a two-day corrective slide from its all-time high earlier this week. Renewed geopolitical tensions have revived safe-haven demand, though gains remain capped by a firmer U.S. dollar and resilient equity sentiment.

Escalating conflicts continue to drive investor interest in gold. U.S. President Donald Trump criticized Russian President Vladimir Putin on Thursday, urging allies to halt purchases of Russian oil to pressure an end to the Ukraine war. Meanwhile, European Commission President Ursula von der Leyen reiterated plans to accelerate the phase-out of Russian fossil fuel imports.

In the Middle East, the Israeli army launched strikes on Hezbollah positions in southern Lebanon, underscoring persistent regional instability. These developments have helped sustain demand for the non-yielding precious metal despite headwinds from currency markets.

While safe-haven flows provide a floor for gold, the stronger dollar and firm equity tone continue to limit upside momentum. Traders are cautious about calling an end to the metal’s recent pullback, with markets awaiting stronger follow-through buying before positioning for a renewed uptrend.

Crude prices retreated on Thursday, pressured by persistent worries over U.S. economic momentum and fuel demand, despite signs of tightening supply and renewed geopolitical risks.

The Federal Reserve cut rates by 25 basis points on Wednesday—its first move this year—and signaled further easing ahead in response to a softening labor market. While lower borrowing costs typically support oil demand, traders focused instead on signs of broader economic weakness.

EIA data showed U.S. crude stockpiles dropped sharply last week as exports surged to near two-year highs and net imports fell to record lows. However, a surprise 4 million barrel build in distillate inventories—well above expectations for a 1 million barrel rise—sparked fresh concerns over fuel demand.

In Russia, the Finance Ministry unveiled new measures to shield its budget from sanctions and oil price volatility. At the same time, Ukraine intensified strikes on Russian energy infrastructure, targeting a major petrochemical complex and refinery. ExxonMobil CEO Darren Woods confirmed the company has no plans to return to Russia, limiting potential Western participation in its oil sector.

Meanwhile, Kuwait’s oil minister, Tariq Al-Roumi, forecast stronger demand following the Fed’s rate cut, especially from Asia.

Despite supportive supply-side developments, demand concerns remain the dominant theme for oil markets. Traders are weighing signs of U.S. economic slowdown against geopolitical risks and OPEC members’ expectations of stronger consumption in the months ahead.

U.S. equities advanced on Thursday, with the US 500 closing at a record high just one day after the Federal Reserve delivered its first interest rate cut since December. Gains were led by semiconductor stocks, as Intel surged on news of a multibillion-dollar investment from Nvidia.

Intel shares rallied sharply after Nvidia announced a $5 billion investment in the company as part of a broader collaboration to develop several generations of custom data center and PC products. The deal will integrate Nvidia’s AI and accelerated computing capabilities with Intel’s CPUs and x86 ecosystem using NVLink technology. The announcement comes just weeks after Washington facilitated a major government stake in Intel, providing the struggling chipmaker with a fresh opportunity to regain momentum after years of stalled turnaround efforts.

The Fed cut its benchmark rate by 25 basis points to 4.00%–4.25% and signaled two more cuts in 2025 amid a cooling labor market and persistent inflation. The decision exposed internal divisions, with one governor favoring a larger cut. Jobless claims fell slightly, but hiring has slowed, reflecting ongoing economic uncertainty.

In corporate developments, American Express advanced after announcing long-awaited upgrades to its U.S. Platinum cards, adding new perks valued at more than $3,500 annually while raising the annual fee by $200.

CrowdStrike shares jumped following upbeat guidance, the announcement of a partnership with Salesforce, and the acquisition of cybersecurity startup Pangea.