Wall Street Surges: Intel and Nvidia Drive Tech Rally

Wall Street experienced record-high closes on Thursday following the U.S. Federal Reserve's announcement of a quarter-point interest rate cut. Notably, Intel's stock surged 22.8% after Nvidia revealed plans to invest $5 billion, marking Intel's largest daily jump since 1987. Peer company Advanced Micro Devices saw a slight dip, shedding 0.8%.

Meanwhile, Nvidia shares rose by 3.5%, recovering from previous losses reportedly due to potential Chinese buyers withdrawing from its chips. This positive momentum spurred the broader semiconductor index up by 3.6% and contributed to gains in the tech-heavy Nasdaq and S&P 500 technology sector, which climbed 1.36%. Additionally, the small-cap Russell 2000 index reached a record high close not seen since November 2021, benefiting from the low interest-rate environment.

The rally was backed by further encouraging economic signs, with a drop in new unemployment benefit applications, despite the labor market's recent softening. Investors are optimistic about more interest rate reductions, boosting AI-linked stocks. The market rally continued with a significant trading volume, though consumer staples and discretionary stocks lagged behind.

(With inputs from agencies.)