Intel’s best day since the 1980s helps drive Wall Street to more records

Specialist Michael Gagliano, left, and trader Timothy Nick work on the floor of the New York Stock Exchange, Wednesday, Sept. 17, 2025. (AP Photo/Richard Drew)

NEW YORK — Wall Street rolled to more records on Thursday as Nvidia and Intel led a rally for technology stocks after announcing a deal that includes a US$5 billion investment.

The S&P 500 rose 0.5 per cent and is on track for a third straight winning week. The Dow Jones Industrial Average added 124 points, or 0.3 per cent, and the Nasdaq composite climbed 0.9 per cent. All three set all-time highs.

Intel soared 22.8 per cent for its best day since 1987 after Nvidia said it would buy US$5 billion of the chipmaker’s stock. It’s part of a collaboration where the pair will develop products for data centers and personal computers. Nvidia climbed 3.5 per cent and was by far the strongest force lifting the S&P 500 because it’s Wall Street’s most valuable company.

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Encouraging reports on the economy sent Treasury yields climbing in the bond market, meanwhile, including one that said fewer U.S. workers applied for unemployment benefits last week than expected.

That could indicate the pace of layoffs is slowing, and it was a relief after the prior week’s data showed a disconcerting leap to a four-year high. The job market has slowed so much that the Federal Reserve on Wednesday cut its main interest rate for the first time this year in order to give it some help.

The Fed also indicated more cuts may be on the way, though Chair Jerome Powell warned that the Fed is in a precarious position and may have to change course quickly. That’s because the economy is in an unusual situation where the job market is slowing while inflation is remaining stubbornly high at the same time.

The Fed is in charge of fixing both, but it has only one tool to do so. And helping one by moving interest rates often hurts the other in the short term.

Expectations are high on Wall Street that the Fed will keep cutting interest rates, and an unexpected halt could send stocks tumbling. Critics say stock prices have already shot too high and become too expensive, in part because of heavy bets on continued cuts in rates.

On Wall Street, smaller stocks led the way. They can be some of the biggest beneficiaries of easier interest rates, and the Russell 2000 index of small stocks rallied 2.5 per cent to join its bigger rivals in setting all-time highs. It topped its prior record, which was set in 2021.

Stocks in the cryptocurrency industry jumped to strong gains, including rises of 7 per cent for Coinbase Global, 20.7 per cent for Bullish and 7.2 per cent for Circle Internet Group. Bitcoin climbed above US$117,500 following the Fed’s cut to interest rates.

Novo Nordisk saw its stock that trades in the United States rise 6.3 per cent after the Danish company said a newly published study showed its once-a-day pill version of Wegovy helped people lose significant weight. It also said that its Ozempic product reduced the risk of heart attack, stroke and death for patients versus another treatment for some people with type 2 diabetes.

On the losing end of Wall Street, the company behind Olive Garden and other restaurant chains sank 7.7 per cent after it reported a profit for the latest quarter that was below analysts’ expectations. Darden Restaurants also raised its forecast for revenue growth this fiscal year, but not by much more than analysts expected.

Live Nation fell 2.8 per cent after the Federal Trade Commission and a group of state attorneys general sued its Ticketmaster business, accusing it of forcing fans to pay more to see live events through a variety of illegal tactics.

The Walt Disney Co. slipped 1.1 per cent after the entertainment giant announced that its ABC television division had suspended Jimmy Kimmel’s late-night show indefinitely after comments that he made about Charlie Kirk’s killing led a group of ABC-affiliated stations to say they would not air the show.

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Earlier in the day, FCC Chairman Brendan Carr called Kimmel’s comments “truly sick” and said his agency has a strong case for holding Kimmel, ABC and Disney accountable for spreading misinformation.

All told, the S&P 500 rose 31.61 points to 6,631.96. The Dow Jones Industrial Average added 124.10 to 46,142.42, and the Nasdaq composite climbed 209.40 to 22,470.73.

In stock markets abroad, indexes rose in Europe following a mixed performance in Asia.

London’s FTSE 100 added 0.2 per cent after the Bank of England held its main interest rate steady.

South Korea’s Kospi rallied 1.4 per cent, and Hong Kong’s Hang Seng fell 1.4 per cent for two of the world’s bigger moves.

In the bond market, the yield on the 10-year Treasury jumped to 4.11 per cent from 4.06 per cent late Wednesday. It’s a notable move after it had briefly dropped below 4 per cent on Wednesday, weighed down by expectations for continued cuts to interest rates by the Fed.

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Stan Choe, The Associated Press

AP Writers Teresa Cerojano and Matt Ott contributed.