By William Collins, consultant in stock markets – Eurasia Business News, September 18, 2025. Article no 1789

The Dow Jones rose following the Federal Reserve’s decision to cut interest rates by 25 basis points, its first rate cut of the year, which lifted investor confidence about more potential cuts ahead. Meanwhile, a major catalyst for market gains was Nvidia’s announcement of a historic $5 billion investment in Intel. Nvidia will buy Intel shares at $23.28 each, making it one of Intel’s largest shareholders with about 4% ownership after new shares are issued. Intel’s stock surged nearly 30% on the news, sparking a rally in chip stocks and boosting major indices like the Nasdaq and S&P 500 to new highs.

The U.S. stock market performance was as follows:

  • The Dow Jones Industrial Average (DJI) rose by approximately 0.6%, gaining about 260 points to close around 46,018.32.
  • The S&P 500 increased by about 0.68% to close near 6,645.42 points.
  • The Nasdaq Composite led the gains with an approximate 1.3% rise.

The Nvidia-Intel deal involves close collaboration to jointly develop next-generation chips for PCs and data centers. Intel will build custom x86 system-on-chips integrating Nvidia RTX GPU chiplets for PCs and Nvidia-custom x86 CPUs for data centers that will support Nvidia’s AI infrastructure. Nvidia CEO Jensen Huang called the partnership a “historic collaboration” that combines Nvidia’s AI and accelerated computing with Intel’s CPU technology and manufacturing capabilities, laying a foundation for the next era of computing. This strategic alliance, alongside recent historic investments by the U.S. government in Intel, has renewed optimism in Intel’s turnaround and the broader semiconductor industry.

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Overall, tech stocks led the market higher, with Nvidia up about 3.8% and Intel dramatically up over 24%, while some competitors in the chip sector like AMD saw declines. Investors are now more confident about the Fed’s dovish stance and the positive implications of the Nvidia-Intel deal for the chip industry and U.S. tech leadership.

European stock markets showed positive performance following the U.S. Federal Reserve’s rate cut decision.

  • The Euro STOXX 50 index rose by about 1.49%, closing around 5,449.82 points.
  • The broader STOXX Europe 600 index increased approximately 0.5% to 553.49 points.
  • Key European stocks that contributed to the gains included SAP (up 2.3%), ASML Holding (up 2%), Linde (up 1.8%), Siemens (up 1.3%), and Schneider Electric (up 2.2%).
  • The banking sector also performed well with notable gains in Banco Santander, UniCredit, Intesa Sanpaolo, and BNP Paribas.
  • Some stocks faced challenges, such as SIG Group, which fell sharply by 20% after issuing a profit warning, and Britain’s Next, which dropped 5.5% due to sales growth concerns.

Gold prices opened slightly below $3,700 per ounce after an initial rally earlier in the week. Gold futures were around $3,678.60 per ounce, down about 1.05% from the previous close, with a daily trading range between $3,646.80 and $3,707.30. The price had surged nearly 40% over the year, propelled by fears of stagflation and expectations of further Federal Reserve rate cuts.

Read also : Gold : Build Your Wealth and Freedom

Silver prices also declined modestly on the day, influenced by profit booking and a firmer U.S. dollar after the Fed’s rate cut. On the Multi Commodity Exchange in India, silver futures for December delivery traded near Rs 1,25,897 per kg, down about 0.86% from the previous day.

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© Copyright 2025 – Eurasia Business News. Article no. 1789