Wall Street Extends Gains, Apple Jumps To Highest Since February: What's Moving Markets Friday?
News Summary
Wall Street extended its gains on Friday, building on momentum from Thursday when Federal Reserve rate cuts propelled all major U.S. benchmarks to record highs. Technology stocks continued to outperform, driven by ongoing AI enthusiasm, with the Nasdaq 100, S&P 500, and Dow Jones advancing 0.5%, 0.3%, and 0.2%, respectively, setting fresh peaks. The Russell 2000, however, slipped 0.4% after breaking its November 2024 high the previous day. President Donald Trump announced a "very productive" call with Chinese President Xi Jinping, revealing plans to visit China early next year, with Xi expected to make a reciprocal trip to the U.S. later. Among mega-cap movers, Apple Inc. (AAPL) jumped 3.1% on strong demand for the new iPhone 17, with preorders in China surpassing iPhone 16 numbers in just one minute. Apple shares climbed above $245, reaching their highest level since late February 2025. Intel Corp. (INTC) slipped 2.5% after soaring 23% on Thursday following Nvidia's announcement of a $5 billion deal to buy a 5% stake in the company. Precious metals regained momentum on rate-cut expectations, with gold rising 0.7% and silver rallying over 2%. Cryptocurrencies reversed Thursday's blowout surge, as Bitcoin fell 1% and Solana tumbled 4.5%.
Background
Prior to Friday's trading, on September 18, 2025, the U.S. Federal Reserve announced a rate cut. This move injected new liquidity and eased monetary policy expectations into the market, propelling major stock indices to record highs on Thursday. Such policy actions typically aim to stimulate economic growth but can also spark inflation concerns. Technology stocks, in particular, have been fueled by ongoing optimism surrounding artificial intelligence (AI), attracting significant capital inflows. Concurrently, President Donald Trump's administration, following his re-election in November 2024, continues to shape U.S. domestic and international policy, especially regarding trade and diplomatic relations with China. High-level engagements between the two nations are closely watched by the market.
In-Depth AI Insights
What are the underlying implications of the divergent performance between large-cap tech and small-cap indices following the Fed rate cut? - The robust performance of large-cap tech, exemplified by AI drivers and Apple's strong iPhone 17 demand, likely reflects inherent growth momentum and positive market response to specific product cycles. These larger firms may disproportionately benefit from increased liquidity, indicating capital concentration in companies with clear growth narratives or market leadership, rather than a broad market uplift. - The weakness in the Russell 2000, despite the rate cut, suggests persistent underlying concerns about broader economic health. Small-cap companies are often more sensitive to financing costs or face sector-specific headwinds not fully offset by general monetary easing. This could signal a bifurcated market where capital flows into perceived safe havens or high-growth areas, while a more widespread economic recovery might face challenges. How might President Trump's upcoming visit to China and President Xi's reciprocal trip influence market sentiment and trade relations in 2025? - The "very productive" call between President Trump and President Xi, along with their planned reciprocal visits, signals a potential de-escalation of trade tensions in Trump's second term. This is generally positive for global market stability and supply chains. However, given Trump's track record, negotiations are likely to be tough. - Investors will closely watch for concrete outcomes regarding trade tariffs, technology restrictions, and intellectual property protection. Any positive developments could boost multinational corporate earnings prospects, while a breakdown in talks or renewed friction could rapidly dampen market sentiment and pose risks to global economic growth. What strategic plays are indicated by Nvidia's $5 billion stake in Intel, despite Intel's Friday dip, and what does it mean for the AI semiconductor landscape? - Nvidia's $5 billion investment for a 5% stake in Intel is not a short-term trade but rather a strategic long-term play, aiming to deepen collaboration and integration in the AI semiconductor space. This suggests Nvidia may be seeking to leverage Intel's strengths in specific chip manufacturing capabilities, packaging technologies, or edge computing solutions to address the increasingly complex demands and competition in the AI market. - This partnership could help Nvidia mitigate potential supply chain bottlenecks and reinforce its leadership in the data center and AI infrastructure markets. Simultaneously, it could accelerate Intel's AI transformation, allowing it to gain technological advantage and market share through collaboration with Nvidia, thereby further reshaping the competitive landscape of the AI chip market and potentially leading to more strategic alliances and vertical integration.