Global stock markets surged on Thursday after a major investment announcement and the U.S. Federal Reserve’s decision to cut interest rates. Nvidia disclosed a $5 billion investment in its struggling U.S. rival Intel, prompting a sharp rise in technology shares. The Nasdaq, heavily weighted toward tech stocks, led Wall Street gains, with Intel’s shares jumping 29 % and Nvidia’s climbing more than 3 %. The Fed’s 25‑basis‑point rate cut—its first of the year—also bolstered market sentiment. Although U.S. inflation remains above the 2 % target, analysts expect policymakers to focus on the jobs market rather than inflation concerns. The dollar strengthened against other major currencies following the announcement.
In Europe, the news lifted stocks, with Paris and Frankfurt each gaining about 1 %. London’s rise was more modest after the Bank of England left its main rate unchanged at 4 % in response to the United Kingdom’s persistently high inflation of 3.8 %. Germany’s central bank, however, signaled that a technical recession is unlikely in the near term, which further boosted sentiment. Asian markets were more cautious: Shanghai and Hong Kong indices fell, while Tokyo closed higher as a weaker yen helped Japanese exporters.
The Nvidia‑Intel deal will involve joint development of chips for PCs and data centers, marking a significant collaboration between the two companies. Key market figures around 15:40 GMT showed the Dow up 0.3 % at 46,170.45 points, the S&P 500 rising 0.7 % to 6,645.33, and the Nasdaq advancing 1.2 % to 22,519.80. In Europe, the FTSE 100, CAC 40, and DAX closed up 0.2 %, 0.9 %, and 1.4 %, respectively. In Asia, the Nikkei 225 rose 1.2 % to 45,303.43, while the Shanghai Composite and Hang Seng Index fell 1.2 % and 1.4 %. The euro and pound weakened against the dollar, with EUR/USD slipping to $1.1775 from $1.1811 and GBP/USD dropping to $1.3543 from $1.3626. The dollar/yen rate rose to 148.01 yen from 147.00 yen. Oil prices dipped, with West Texas Intermediate down 0.7 % at $63.26 per barrel and Brent at $67.48 per barrel, also down 0.7 %.
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