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Wall Street Futures Surge as Fed Hints at More Cuts, Nvidia’s $5B Intel Bet Lifts Tech

  U.S. stock futures climbed on Thursday, with the Nasdaq leading gains, after the Federal Reserve cut interest rates by 0.25 percentage points and signaled two more reductions could follow in 2025. Dow Jones Industrial Average futures rose 0.7%, S&P 500 futures gained 0.8%, and Nasdaq 100 futures jumped 1.2%, buoyed by a sharp rally in tech stocks. Intel shares surged nearly 30% in premarket trading after Nvidia announced a $5 billion investment in the struggling chipmaker, though the deal stops short of a manufacturing partnership. The Fed’s move, aimed at supporting a slowing economy amid high inflation and a weakening labor market, initially sparked caution, but optimism returned as investors bet on a more accommodative policy path. If gains hold, the S&P 500 is set to open above 6,700 for the first time, extending September’s unexpected rally. Traders are now watching weekly jobless claims for further clues on the labor market, while corporate earnings — including ...
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Treasuries Extend Selloff Amid Hawkish Fed Views


The world’s largest bond market is experiencing continued turbulence as hawkish Federal Reserve (Fed) views persist. Here are the key points:

  1. Asian Stocks Under Pressure: Asian stocks are set to open lower after US shares extended their losing streak to the longest since January. Equity futures contracts in Japan, Hong Kong, and South Korea indicate early losses, while those in Australia and China gained. Investors will closely watch Asian chipmakers like Taiwan Semiconductor Manufacturing Co. and Tokyo Electron Ltd.

  2. ASML Holding NV’s Warning: Europe’s most valuable tech firm, ASML Holding NV, reported a tumble in orders during the first quarter. Its China sales are likely to be hampered by US export control measures. This news has raised concerns for semiconductor stocks.

  3. US Bond Market: Despite solid economic readings, the US bond market faces headwinds. Jerome Powell’s recent comments have dampened rate-cut expectations. However, dip buyers emerged in the Treasury market, with two-year yields dropping below 5%. A $13 billion sale of 20-year bonds also drew solid demand.

  4. Investor Sentiment: Investors remain skeptical about how much further US stocks can rally after their strong performance in the first quarter. The latest pullback occurs even as US economic data point to continued strength.

  5. Dollar and Currencies: The dollar was little changed in Asia after falling for the first time in six days. Japanese yen and Korean won have also experienced significant declines against the dollar this year.

  6. Outlook: UBS Global Wealth Management expects the yield on the 10-year US Treasury to end the year around 3.85%. The Fed’s rate cuts, though delayed, are still anticipated, leading to further bond market adjustments.

In summary, the bond market remains sensitive to Fed communications, economic data, and global events. Investors should closely monitor developments as interest rates continue to be a focal point.


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