Intel Stock Surges 26% on Nvidia $5B Investment Partnership

Wall Street saw a notable rally with the S&P 500 and Nasdaq composite climbing, primarily driven by a major $5 billion investment by Nvidia into Intel, which propelled Intel shares up over 26%, marking its best single-day gain since 1987. This partnership aims to co-develop custom chips for data centers and PCs, signaling strong investor confidence in Intel's long-term value. The Federal Reserve's recent 25-basis-point rate cut further bolstered market optimism, fueling hopes of additional easing later in the year despite Fed Chair Jerome Powell's caution about ongoing inflation and labor market challenges. Positive economic indicators, including fewer new unemployment claims and robust manufacturing activity, also supported the bullish sentiment. While the Dow Jones Industrial Average saw a slight decline, the tech sector broadly extended gains, with companies like CrowdStrike and Synopsys joining the rally. The combination of strategic corporate moves and accommodative monetary policy has contributed to a strong upward momentum in U.S. equities, with the S&P 500 nearing record highs.