Shares surge due to Nvidia-Intel deal; Federal Reserve lowers interest rates
Market Roundup: September 18, 2025
In a day marked by global economic developments, stocks saw mixed performances across major markets.
Fawad Razaqzada, market analyst at City Index and FOREX.com, highlighted a significant trend: policymakers prioritising jobs over inflation. This perspective influenced investor confidence, leading to expectations of more interest rate cuts this year.
In Europe, Paris and Frankfurt stocks rose around 1% in afternoon deals. German sentiment was buoyed by a central bank statement, with the country's stocks climbing higher. However, London stocks rose less enthusiastically, as the Bank of England kept its main interest rate at 4%.
Across the Atlantic, US stocks had mixed performances on Wednesday due to uncertainty following the Fed's announcement. Despite US inflation running above the 2% target, the Fed decided to cut interest rates. All three major US indices finished at fresh records, with the S&P 500 climbing 0.48%, the Dow Jones Industrial Average rising 0.27%, and the Nasdaq Composite advancing 0.94%.
The tech giant Nvidia was a standout performer, gaining more than three percent. The company's shares soared nearly 23% following an announcement of a US$5 billion investment in Intel. The deal between the two tech giants involves joint development of chips for PCs and data centers.
Asian investors were cautious, with Shanghai stocks retreating overall and Hong Kong's session ending in the red. Tokyo closed in the green due to the Fed decision boosting the nvidia stock.
Norway's central bank also cut borrowing costs on Thursday, following a similar move by Canada on Wednesday. However, Fed boss Jerome Powell remained ambiguous, stating that decision-makers are approaching it 'meeting by meeting.'
The deal between Nvidia and Intel comes after the United States took a 10-per cent stake in Intel. The companies involved in the collaboration announced on September 18, 2025, to develop chips for PCs and data centers. This strategic partnership is expected to revolutionise the tech industry, integrating Nvidia's RTX GPU chiplets into custom x86 CPUs and SoCs for AI infrastructure and personal computing.
This news roundup provides a snapshot of the global market trends on September 18, 2025. As always, investors are advised to carefully consider their investment strategies and consult with financial advisors.
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