Morning Movers: Intel jumps following $5B investment from Nvidia

Stock futures surged as markets opened with renewed energy after the Federal Reserve delivered its first interest-rate cut of the year, reducing the policy rate by 25 basis points to a range of 4%-4.25%. The Fed emphasized labor-market weakness as a key concern, suggesting that further interest-rate cuts might follow in October and December. However, Chair Jerome Powell was careful to characterize the policy easing as “risk management” rather than a full-throated pivot, signaling that each future move will depend heavily on economic data.

In fixed income, yields have diverged. Short-term Treasury yields have dropped modestly following the Fed cut, while longer-term yields are under upward pressure as investors price in risks tied to inflation and future deficit concerns.

The dollar briefly plunged following the Fed’s decision, reinforcing expectations of additional easing, though it has shown some recovery as markets absorb the nuance in Powell’s remarks.

In commodities, oil prices dipped for a second day. Traders appear wary that the rate cut, while stimulative in theory, may not immediately translate into stronger demand, especially given oversupply concerns and signs of weakening fuel usage. Gold remains firm, benefiting from safe haven flows and expectations that real interest rates may fall if inflation cools gradually.

In pre-market trading, S&P 500 futures rose 0.68%, Nasdaq futures rose 1.10% and Dow futures rose 0.39%.

Check out this morning’s top movers from around Wall Street, compiled by The Fly, and subscribe to the Fly By on YouTube.

HIGHER –

• 89bio (ETNB) up 87% after Roche (RHHBY) announced that it has entered into a definitive merger agreement to acquire the company for $14.50 per share in cash at closing, plus a non-tradeable CVR to receive certain milestone payments of up to an aggregate of $6.00 per share in cash
• Intel (INTC) up 30% after Nvidia (NVDA) said it will invest $5B in the chipmaker as part of a deal to co-develop multiple generations of custom data center and PC products that accelerate applications and workloads across hyperscale, enterprise and consumer markets
• Amer Sports (AS) up 5% after raising its Q3 revenue guidance
• Novo Nordisk (NVO) up 7% after The New England Journal of Medicine published the results from the OASIS 4 phase 3 trial that studied the efficacy and safety of the investigational once-daily oral semaglutide 25 mg

UP AFTER EARNINGS –

• FactSet (FDS) up 1%

DOWN AFTER EARNINGS –

• Darden (DRI) down 7%
• Cracker Barrel (CBRL) down 6%

LOWER –

• Red Cat (RCAT) down 10% after a 15.6M share spot secondary priced at $9.60 per share