U.S. equity futures pointed to a positive start on Thursday, with technology stocks expected to drive early gains after a turbulent session the previous day ended with mixed results.
Nasdaq 100 futures were up 1.1%, signaling that tech names could lead the rally. The strength comes largely from Intel (NASDAQ:INTC), whose stock soared more than 30% in premarket trading after announcing a strategic partnership with Nvidia (NASDAQ:NVDA) to co-develop multiple generations of custom data center and PC products.
Nvidia also gained traction, rising 2.7% premarket after several down sessions. As part of the deal, Nvidia will purchase $5 billion worth of Intel stock at $23.28 per share.
Optimism was further fueled by economic data. The Labor Department reported that initial jobless claims fell sharply to 231,000 in the week ending September 13, a decline of 33,000 from the prior week’s revised level of 264,000. Economists had forecast a smaller drop to 240,000.
Wednesday’s trading had been marked by choppy swings as markets digested the Federal Reserve’s latest policy decision. After fluctuating around the flat line for much of the day, the Dow finished higher by 260.42 points, or 0.6%, at 46,018.32. The S&P 500 edged down 0.1% to 6,600.35, while the Nasdaq slipped 0.3% to 22,261.33.
The volatility followed the Fed’s announcement of a widely expected 25-basis-point cut, lowering the federal funds rate to a range of 4.0% to 4.25%. Policymakers signaled two more rate cuts could come before year-end, with projections pointing to rates between 3.50% and 3.75% by the close of 2025.
Still, traders were somewhat underwhelmed by the cautious stance. Only new Fed Governor Stephen Miran pushed for a half-point reduction. “The strong vote for the 25-basis-point cut suggests that members, while acknowledging that downside risks to the job market have increased, are not panicking about the state of the economy,” said Mike Fratantoni, chief economist at the Mortgage Bankers Association.
Looking ahead, Fed officials project just one cut in 2026, though internal views remain divided. The next policy meeting is set for October 28–29, with CME’s FedWatch tool assigning nearly an 88% chance of another quarter-point cut.
Sector performance on Wednesday reflected the muted broader market close. Banking stocks outperformed, with the KBW Bank Index jumping 1.3% to a record high, while oil service companies lagged as crude prices weakened, dragging the Philadelphia Oil Service Index down 1.1%.
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