Stock market surges following Nvidia-Intel collaboration and Federal Reserve interest rate decrease
The global financial markets experienced a surge on Thursday, with major indices in the United States closing at fresh records, following the announcement of a historic collaboration between technology giants Nvidia and Intel.
The deal, disclosed around mid-September 2025, will involve joint development of chips for PCs and data centers. The announcement sent shares of both companies soaring, with Intel shares soaring nearly 23 percent, and Nvda stock price gaining more than three percent. The news also propelled shares of other tech firms, including ASML, a Dutch company that makes the machines used to produce semiconductors, whose shares surged more than seven percent.
The dollar gained against other major currencies, with the Dollar/yen exchange rate increasing to 147.97 yen, the Euro/dollar exchange rate decreasing to $1.1785, and the Pound/dollar exchange rate decreasing to $1.3550. The Euro/pound exchange rate, however, increased to 86.96 pence.
In the United States, all three major indices finished at fresh records. The Dow Jones closed up 0.3 percent at 46,142.42, the S&P 500 closed up 0.5 percent at 6,631.96, and the Nasdaq closed up 1.2 percent at 22,470.73, leading gains on Wall Street.
Elsewhere in the world, Tokyo's Nikkei 225 closed with a 1.2 percent increase, Frankfurt's DAX closed up 1.4 percent at 23,674.53, and Paris' CAC 40 closed up 0.9 percent at 7,854.61. However, Hong Kong's Hang Seng Index closed down 1.4 percent at 26,544.85.
The rally in the markets came amidst a decrease in West Texas Intermediate crude oil, which decreased 0.8 percent to $63.57 per barrel, and Brent North Sea Crude, which decreased 0.8 percent to $67.44 per barrel.
Intel has struggled in recent years after missing key technology shifts. The collaboration with Nvidia is seen as a move to regain its competitive edge in the technology sector. In a joint statement, Nvidia's CEO Jensen Huang and Intel's CEO Lip-Bu Tan highlighted the complementary strengths of their computing platforms and technologies. Jensen Huang described the collaboration as a 'historic collaboration'.
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