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Thursday, September 18

Noteworthy macro moves today: Nasdaq 100 Index (US) +1.0%. AEX 25 Index (Netherlands) +1.9%. Noteworthy US mega-cap moves today: NVIDIA Corp (NVDA) +2.8%. 

The Federal Reserve's recent decision to cut interest rates by 25 basis points has significantly influenced market sentiment, with expectations of further cuts later this year. This move was prompted by signs of a cooling labor market and increased downside risks to employment, which have led investors to react positively in equity markets across Europe and the U.S., as evidenced by gains in major indices like the DAX and CAC 40.

In economic data releases today, however, initial jobless claims in the U.S. fell to 231,000 for the week ending September 11—well below forecasts—and were accompanied by an increase in manufacturing activity according to the Philadelphia Fed Manufacturing Index. These results suggest resilience within certain sectors despite broader concerns about inflationary pressures remaining above target levels.

Additionally, while European stocks are buoyed following dovish signals from central banks including both the Fed and Bank of England—which maintained its rate at 4% but slowed quantitative tightening—the Eurozone’s current account surplus narrowed unexpectedly amid declining goods surpluses. The mixed performance reflects ongoing geopolitical tensions that could impact future trade dynamics ahead of significant discussions between global leaders scheduled soon.

iShares China Large-Cap ETF (FXI) [-1.4%]
The iShares China Large-Cap ETF (FXI) has seen a price decline of 1.4% since Wednesday. Recent developments include China's commitment to maintaining dialogue aimed at stabilizing global supply chains, coinciding with reports of a halt in Nvidia chip purchases, which may pose challenges for the technology sector. Additionally, China has ceased its antitrust investigation into Google amid ongoing trade discussions with the United States. The Federal Reserve's recent interest rate cut of 25 basis points may also influence sentiment towards Chinese equities. Furthermore, China is reportedly instructing local firms to avoid purchasing NVIDIA's AI chips, reflecting a broader strategy for self-reliance. Among FXI's holdings, notable contributors to performance include JD and LI, both of which experienced significant declines.

VanEck Semiconductor ETF (SMH) [+3.1%]
The VanEck Semiconductor ETF (SMH) has risen by 3.1% during the pre-market session, driven by several key developments. The Federal Reserve's recent interest rate cut of 25 basis points has positively influenced the semiconductor sector. Nvidia announced a substantial $683 million equity investment to enhance its AI infrastructure, further supporting market dynamics for semiconductor companies. Among SMH's holdings, Intel (INTC) experienced a significant increase following a collaboration announcement with Nvidia, which includes a $5 billion investment in Intel's common stock. This partnership aims to leverage Nvidia's AI capabilities alongside Intel's CPU technologies. Additionally, Synopsys Inc (SNPS) saw an 11% premarket increase, reflecting heightened interest in its stock amid broader industry movements. The Nasdaq 100 Index has also risen by 0.98%, aligning with the positive sentiment in the semiconductor sector.

INTC | +30.1% | +41.5B
Intel Corp | Semiconductors
Intel Corp's stock has surged significantly in pre-market trading, climbing by over 28% following the announcement of a substantial partnership with NVIDIA. NVIDIA will invest $5 billion in Intel's common stock at a price of $23.28 per share. This collaboration aims to co-develop custom chips for data centers and personal computing, utilizing NVIDIA's NVLink technology. Intel will design custom x86 CPUs for NVIDIA's AI infrastructure and manufacture x86 system-on-chips that incorporate NVIDIA RTX GPU chiplets. Social media discussions highlight this as a "blockbuster deal," with reports of Intel's shares jumping as much as 32% premarket, reflecting a strong positive sentiment regarding the strategic implications of this partnership for both companies.

NVO | +7.6% | +15.9B
Novo Nordisk A/S | Pharmaceuticals
Novo Nordisk A/S has seen a notable rise in its stock price following the publication of significant trial results. The OASIS 4 Phase 3 trial demonstrated that the oral semaglutide 25 mg, branded as Wegovy, resulted in an average weight loss of 16.6% among participants over 64 weeks, compared to just 2.7% for placebo. Over one-third of participants achieved weight loss of 20% or more. Additionally, the Ozempic treatment was shown to reduce the risk of heart attack, stroke, and death by 23% in patients with type 2 diabetes and cardiovascular disease. These developments have been widely discussed on social media, contributing to a substantial increase in Novo Nordisk's stock price, which crossed $60 per share. Institutional investors have also shown interest, with multiple firms issuing buy ratings recently.

CRWD | +5.5% | +6.2B
CrowdStrike Holdings Inc | Systems Software
CrowdStrike Holdings Inc has recently attracted notable analyst attention, with several firms raising their price targets. Truist Securities increased its target from 500 to 550, maintaining a Buy rating. Barclays raised its target from 500 to 515, affirming an Overweight stance, while Needham lifted its target to 535 from 475, retaining a Buy rating. KeyBanc's report post-Fal.Con conference highlighted a new $20 billion annual recurring revenue target for fiscal 2036 and raised its price target to 510 from 495. Additionally, an investor briefing is scheduled for September 2025, featuring key presentations from executives. Social media discussions have noted that CrowdStrike does not significantly compete with certain firms, highlighting its modest growth in relation to others in the tech sector. In correlated market movements, Synopsys Inc has seen a significant premarket increase, driven by news related to Intel Corporation, which may reflect broader industry dynamics impacting CrowdStrike.

AMD | -4.1% | -10.2B
Advanced Micro Devices Inc | Semiconductors
Shares of Advanced Micro Devices Inc (AMD) fell approximately 4.3% following NVIDIA's announcement of a $5 billion investment in Intel, which includes collaboration on custom data center and client CPUs. This partnership, featuring the integration of NVIDIA's NVLink technology, significantly enhances both companies' positions in the AI and computing sectors. In contrast, Intel's stock surged nearly 30% in premarket trading as a result. Social media discussions revealed a mix of sentiments; while some shareholders expressed familiarity with algorithmic manipulation in pre-market trading, others highlighted optimism regarding AMD's future. CEO Lisa Su noted that the company is in the second year of a decade-long AI bull run, reinforcing confidence in AMD's potential dominance in inference capabilities over the next 20 years, amidst ongoing research and development efforts.

IONQ | +6.5% | +964.2M
IONQ Inc | Technology Hardware, Storage & Peripherals
IONQ Inc's stock has increased significantly, reflecting broader market movements. The company recently signed a memorandum of understanding with the U.S. Department of Energy to advance quantum technologies in space applications. This agreement supports the DOE's Quantum in Space initiative and involves designing an orbital demonstration of quantum-secure communications using IonQ's satellite platform. Social media discussions highlight the excitement surrounding this announcement, with users noting a price increase following the news. Additionally, the Russell 2000 Index has also shown an upward trend, which may correlate with IONQ's recent price movement.

NVDA | +2.8% | +121.4B
NVIDIA Corp | Semiconductors
NVIDIA Corp has experienced a notable price increase, aligning with a significant rise in the Semiconductors sector. The company has announced a substantial $5 billion investment in Intel Corp, acquiring shares at $23.28 each. This strategic partnership aims to co-develop custom data center and personal computing products, leveraging NVIDIA's AI capabilities alongside Intel's CPU technologies. The collaboration will utilize NVIDIA's NVLink technology to enhance performance across various markets. Following this announcement, Intel's stock surged sharply in pre-market trading. Conversely, NVIDIA faces challenges as China's cyberspace regulator has instructed companies to halt orders for its RTX Pro 6000D chips, raising concerns about its market position in China amid escalating U.S.-China technology tensions. Additionally, NVIDIA shares previously faced downward pressure following a Federal Reserve interest rate cut, which did not alleviate expectations for the stock.

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