2025-09-18 22:09
publication
2025-09-18 22:09
Such a clear bullshit confirmation is often seen. In response to the start of the cycle of interest rates in the USA, NASDAQ and S&PC have set new records of all time. A separate story is what happened on the values of Intel and Nvidia.
Nasdaq Composite went up by nearly 1% and ended the Thursday session at the level of 22,470.73 points. This is a record high closing course, while in the session traction a new record of all time has been set (22 538.57 points). It was the same in the case of the S & P500 index, which gained 0.48% and reported at 6,631.95 points. He also recorded a new historical maximum.
The peak of all time fell prey to the good industrial average Dow Jones, which after an increase of 0.27% reached a ceiling of 46 142.18 points. Maybe they were not overly spectacular, but coincidence with Wednesday's reduction of interest rates in Feda leaves no doubt here. The market apparently came to the conclusion that short -term interest rates in the US will soon equalize inflation and that it is a gigantic stimulant for the valuations of growth companies.
It is not surprising, therefore, that on Thursday, the ratings of fashionable technology companies grew the most, after which investors expect a jumping increase in profits in an indefinite future. It is for the valuations of such companies that interest rates are crucial.
And on this front the market received a “afterburner” in the form of a contract between Nvidia and Intel. The AI bull market star will invest $ 5 billion in a declining titan of processor production. The fusion of the old with the new caused euphoria among investors. Intel shares increased by almost 23%, and the Nvidia rate increased by 3.5%. In the case of Intel, it was the strongest daily increase in the listing since October 1987, says Reuters. A decade ago, Intel would probably be a small nvidia. Today the roles have reversed and the former student exceeded the master.
So on this one day we received a combination of events that pushed the stock wagon up for the previous 12 months. That is, the looser monetary policy of the Fed and a new stimulus as part of the investment mania around the AI sector. In addition, the new record was set by Russell2000. This index of “small” American companies increased by 2.5%on Thursday, finally piercing the peak of November 2024.
– We expect support for economic growth and justification for pull -out valuations, while the vision of lower interest rates helps in this – so laconically explained the Thursday records Sam Stovall ,, the main investment strategist at CFRA Research.
KK
