Here’s what’s happening in the stock market today:
The stock market is showing solid gains today, buoyed by optimism following the Federal Reserve’s 25 basis point rate cut yesterday and a major investment by Nvidia in Intel. 📈💹 The S&P 500 and Nasdaq futures are hitting record highs as investors embrace the easing monetary policy and renewed confidence in tech stocks. 💸📊
Major Indices Performance 📈
S&P 500 is up about 0.4%, nearing all-time highs again. 📊
Dow Jones Industrial Average rose modestly by around 0.1%. 🏦
Nasdaq Composite leads the rally, gaining roughly 0.9%. 🖥️
Market Movers 🚀
Intel shares soared over 25% after Nvidia announced a $5 billion investment to jointly develop AI and computing chips. 🤖
Nvidia itself is also driving enthusiasm through this strategic partnership. 💼
Financial data provider FactSet and restaurant chain Darden are reporting earnings today, while FedEx and Lennar will report later, adding to market attention. 📅
Key Events Driving the Market 🗞️
The Fed cut rates by 0.25% amid signs of a cooling labor market, with additional rate cuts possibly on the horizon in 2025. This has fueled a rally across equities. 🚦
Weekly jobless claims data showed a slight easing after a recent spike, highlighting labor market uncertainty. 🔔
The Fed’s messaging about persistent inflation pressure and cautious language on the policy path maintains some investor caution. 🌏
Investor Sentiment 👀
The tone is optimistic overall, with traders embracing expectations of further easing and strong corporate developments in tech, especially Nvidia’s large stake in Intel. However, some caution remains given mixed signals on inflation and labor data. Asian markets are also showing strength, supporting global sentiment as U.S. investors look ahead to upcoming earnings reports. 🐂📈
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TRADE OF THE DAY:
BABA
Name: Alibaba Group Holding Ltd
Symbol: BABA
Current Price: ~US$163.88
Trade
Sell to Open: 1 BABA Oct 31, 2025 138/133 Put Vertical
Total Credit Received: $47.00
Credit per Contract: $47.00
Direction: Bullish (put credit spread)
Probability of Profit (PoP): 84.94%
Potential ROI:
Max Risk (Loss): $453.00
ROI: ($47 ÷ $453) × 100 ≈ 10.4%
Trade Explained in Simple English:
You’re selling a put vertical spread by selling the 138 strike put and buying the 133 strike put, expiring October 31, 2025. You receive $47 up front. Your break-even point is approximately $137.53 (the short strike of 138 minus the credit ÷ 100). If BABA stays above this level by expiration, both puts expire worthless and you keep the full credit. Your maximum loss is limited to $453 if BABA falls below $133 at expiration. Because you’re expecting the stock to stay above your break-even, this is a bullish strategy.
Wall Street Highlights:
News Beyond the Numbers
Nvidia announced a $5 billion investment in Intel, sparking a major partnership to develop data center and personal computer products.
https://www.bnnbloomberg.ca/markets/2025/09/18/stocks-head-for-more-records-on-wall-street-led-by-tech-gains/Intel shares surged over 28% following Nvidia’s investment and collaboration plans, marking one of Intel's largest daily gains in years.
https://www.wsj.com/livecoverage/stock-market-today-dow-sp-500-nasdaq-09-18-2025Intuit hosted its Investor Day and reaffirmed guidance for its first quarter and full fiscal 2026, underscoring confidence in its growth trajectory.
https://investors.intuit.com/news-events/press-releases/detail/1271/intuit-hosts-investor-day-reaffirms-first-quarter-and-fiscal-2026-guidanceCracker Barrel warned of lower sales and declining customer traffic, leading to an 8% drop in shares amid controversy over its logo redesign.
https://www.bnnbloomberg.ca/markets/2025/09/18/stocks-head-for-more-records-on-wall-street-led-by-tech-gains/Walt Disney’s ABC indefinitely suspended Jimmy Kimmel’s late-night show following backlash against comments that drew criticism from the FCC Chairman.
https://timesofindia.indiatimes.com/business/international-business/us-markets-today-wall-street-heads-for-fresh-records-led-by-tech-rally-fed-rate-cut-boosts-sentiment/articleshow/123978586.cmsRestaurant Brands International announced it will report third-quarter 2025 results on November 5, setting investor expectations for its upcoming earnings release.
https://www.rbi.com/English/news/news-details/2025/Restaurant-Brands-International-to-Report-Third-Quarter-2025-Results-on-November-5-2025/default.aspxHyundai Motor revealed a bold 2030 vision and product roadmap during its 2025 CEO Investor Day, outlining its strategy for future growth and innovation.
https://www.hyundai.com/worldwide/en/newsroom/detail/0000001018Chinese officials urged firms to avoid using Nvidia AI chips amid rising geopolitical tensions and concerns over technology security.
https://www.wsj.com/print-edition/20250918/business-and-financeBen & Jerry's co-founder quit after 47 years, citing a loss of the original company mission and values.
https://www.wsj.com/print-edition/20250918/business-and-financeAutoliv announced a planned Q3 2025 earnings call for October 17, signaling important updates expected from the automotive safety supplier.
https://www.prnewswire.com/apac/news-releases/invitation-to-autolivs-q3-2025-earnings-call-302560514.html
