US stock futures jumped on Thursday after the Federal Reserve returned to easing interest rates and signaled further cuts are coming, while a Nvidia (NVDA) lifeline for Intel (INTC) boosted spirits.

Dow Jones Industrial Average futures (YM=F) rose 0.7%, while those on the S&P 500 (ES=F) moved 0.8% higher. Contracts on the tech-heavy Nasdaq 100 (NQ=F) led with a 1.2% gain, taking another leg up as Nvidia (NVDA) said it plans to take a multibillion-dollar stake in Intel (INTC).

Shares in Intel surged almost 30% in premarket trading as investors welcomed Nvidia's $5 billion investment in the struggling US chipmaker. But the partnership move stopped short of offering Intel a crucial manufacturing deal.

More broadly, markets are shaking off initial hesitation that dragged on stocks after the Fed reduced rates by a quarter percentage point on Wednesday. While its "dot plot" signaled that two more cuts are likely in 2025, Fed Chair Jerome Powell's comment that high inflation and a weak labor market leave "no risk-free path" dented confidence.

Investors will get more insight into the jobs landscape with the release of weekly jobless claims figures on Thursday.

Stocks are eyeing new highs after slipping from records in the runup to the Fed's rate decision. If premarket gains hold, the S&P 500 (^GSPC) will cross 6,700 at the open, after closing above 6,600 for the first time to start the week. The three major US indexes have risen in September so far, bucking a historically tough month for stocks.

On the corporate front, FedEx (FDX) will report its quarterly results after the bell. Analysts expect the delivery giant's profit to take a hit from President Trump's decision to end the "de minimus" tariff exemption for low-value direct-to-consumer packages from China and Hong Kong. These packages account for about three-quarters of duty-free sub-$800 shipments to US each year, they said.

Read more: The latest on Trump's tariffs

Trump is on a state visit to the UK, where he dined with tech and finance executives at Windsor Castle. Trump and Prime Minister Keir Starmer are set to meet on Thursday amid efforts to nail down deals on tech, energy, and digital assets. In particular focus for the US and the UK is boosting ties in AI, with Microsoft (MSFT) and Nvidia (NVDA) pledging to make investments.

Nvidia (NVDA) said Thursday that it plans to invest $5 billion in Intel (INTC), throwing its weight behind the beleaguered chipmaker but holding off from making a crucial manufacturing order.

The move comes just weeks after the Trump administration pushed through a deal for the US government to take a significant stake in Intel.

Reuters reports:

The stake instantly will make Nvidia one of Intel's largest shareholders, giving it roughly 4% or more of the company after new shares are issued to complete the deal. Nvidia's support represents a new opening for Intel after years of turnaround efforts at the famed U.S. manufacturer failed to pay off, and it sent shares soaring 30% in premarket action.

The company – once the chip industry’s flagbearer – appointed a new CEO, Lip-Bu Tan, in March. He came under fire from US elected officials including President Trump, who called for him to resign due to concerns about his connections with China. That led to a swiftly arranged meeting in Washington that ended with Intel's unusual arrangement to give the US a 10% stake in the company.

The new pact includes a plan for Intel and Nvidia to jointly develop PC and data center chips. But crucially, it will not involve Intel’s contract manufacturing business making chips for Nvidia. Most analysts believe that for Intel’s foundry to survive, it would need to eventually win a large customer such as Nvidia, Apple (AAPL), Qualcomm (QCOM), or Broadcom (AVGO).

Nvidia, whose must-have chips are powering a global artificial intelligence boom, said in a statement it will pay $23.28 per share for Intel common stock, a price slightly below the $24.90 at which Intel shares closed on Wednesday.

Read more here.

When the labor market was stronger, the Fed had the time and the focus to lean into its inflation-fighting mandate. But that phase has now ended, notes Yahoo Finance's Hamza Shaban.

He reports in today's Morning Brief:

Without fully subduing pricing pressures, the central bank now has to struggle on two fronts, turning its attention to maximum employment and a more neutral monetary policy. The Fed, for the first time since December, has loosened its restrictive grip.

\\"There are no risk-free paths now,\\" said Chair Jerome Powell at the press conference Wednesday. \\"It is quite a difficult situation for policymakers.\\"

In prior policy decisions, when the Fed confronted the threat of looming tariffs and persistent inflation, the balance of risks was clearly tilted towards keeping prices stable.

But lower levels of job creation and higher unemployment warranted a change in policy as the risks between inflation and a weakened job market have meaningfully shifted, Powell said. And thus, the Fed began its move away from its moderately restrictive stance.

It is, as Powell clarified, \\"quite an unusual situation\\" for the Fed's two goals to be in tension. But he clarified that the framework is clear and requires the Fed to ask itself \\"how far is each from the goal and how long is it expected to get to the goal\\" when deciding what to do.

But that framework has little to say about what to do, only how to weigh the goals, and the potential to execute a misstep is growing.

Read more here.

Moody's Ratings has flagged several potential risks in Oracle's (ORCL) $300 billion worth of recently signed artificial intelligence contracts.

But the ratings agency stopped short of taking ratings action against the software giant, whose shares stepped about 1.5% higher in premarket trading amid broader stock gains.

Reuters reports:

[Moody's analysts] noted the contracts highlight the \\"tremendous potential\\" for Oracle's AI infrastructure business. But they also brought attention to several risks laid out in Moody's July ratings action, where the agency revised Oracle's credit rating outlook to negative from stable.

One of the main risks flagged by Moody's involved the \\"counterparty risk\\" of Oracle relying on large commitments from a small number of AI companies to fund its business model. ...

The analysts further noted the company will see its debt increase faster than its EBITDA, which will contribute to a forecast high leverage of 4x before Oracle's EBITDA begins to outpace its debt.

Read more here.

I awoke today to two things.

One, videos of President Trump hanging with King Charles in the UK. And two, Meta (META) CEO Mark Zuckerberg playing with his new AI glasses on stage at the company's Connect event. What a way to start my reporting day!

While Zuck's new tech didn't work perfectly on stage, what he showed off was impressive — especially after the dud that was Apple's (AAPL) iPhone 17 reveal.

JP Morgan analyst Doug Anmuth agrees on Meta:

\\"Meta Connect showcased Meta's ambitions and progress toward shaping computing’s next form factor, while also serving as a reminder of the many tens of billions of dollars that Meta has invested into AI and the Metaverse. However, as we’ve discussed many times in the past, Meta continues to earn the right to spend on future growth with strong core advertising performance.\\"

Disney (DIS) stock is little changed on Thursday after the media giant's ABC network took \\"Jimmy Kimmel Live!\\" off air indefinitely, responding to a backlash over remarks on the killing of Charlie Kirk.

The move followed a warning by Nexstar Media (NXST) that it would pull the late-night talk show from its network of affiliates. FCC Chairman Brendan Carr also hinted at a risk to ABC broadcast licenses if no action was taken over Kimmel's remarks around the death of Republican activist Kirk.

Bloomberg reports:

Disney’s decision to suspend one of its biggest stars underscores the treacherous political climate for major media companies and is the latest example of the Trump administration pressuring them to mind their talent’s on-air remarks.

Last year, Disney paid $15 million to settle a defamation lawsuit brought by President Donald Trump over comments made by host George Stephanopoulos. The president this week sued the New York Times Co. (NYT) for $15 billion, claiming it has an agenda against him.

Kimmel, who has been a vocal critic of Trump, accused Republicans of using Kirk’s death to criticize their opponents. ...

“This is a very, very serious issue right now for Disney,” Carr said. “They have a license granted by us at the FCC, and that comes with it an obligation to operate in the public interest.”

Read more here.

Bloomberg reports:

Shareholders wiped A$3 billion ($2 billion) off the market value of Australian oil and gas group Santos Ltd. after a third attempted sale faltered on Wednesday, raising pressure on management to increase returns.

Shares in the gas producer fell as much as 14% at the start of Sydney trading, their biggest intraday decline since March 2020, following Abu Dhabi National Oil Co.’s decision to walk away from its $19 billion takeover bid. The stock was down 12% at 12:25 p.m. in Sydney, valuing the company at A$22 billion.

A group led by Adnoc’s XRG unit dropped its proposal after failing to agree on key terms, ending months of talks. It marks the latest setback for Chief Executive Officer Kevin Gallagher, who has faced investor criticism for pushing an aggressive plan to boost output over higher dividend payouts.

“Given this is the third time Santos has failed to find a buyer, and its relatively poor investment performance, Santos management is likely to face increasing shareholder pressure to increase returns and pivot to a new strategy,” said Josh Ruciman, gas analyst at the Institute for Energy Economics and Financial Analysis. “This may include Santos divesting its LNG assets, but whether Santos’ current management is willing to do so is another question.”

Read more here.

Oil prices held overnight Wednesday following the Fed's expected rate cut. Investors are eyeing further rate cuts towards the end of the year in the hopes that lowered borrowing costs leads to a boost in demand.

Reuters reports:

Brent (BZ=F) crude futures were 8 cents, or 0.12%, down at $67.87 a barrel at 0042 GMT. U.S. West Texas Intermediate (CL=F) futures were down 10 cents, or 0.16%, at $63.95.

The Federal Reserve cut is policy rate by a quarter of a percentage point on Wednesday and indicated it will steadily lower borrowing costs over the rest of the year, as policymakers responded to signs of weakness in the jobs market.

On the demand side, U.S. crude oil stockpiles fell sharply last week as net imports dropped to a record low while exports jumped to a near two-year high, showed data from the Energy Information Administration.

Read more here.

Read more: The latest on Trump's tariffs