Stocks Climb on Hopes of Additional Fed Easing

Market Overview - The S&P 500 and Nasdaq 100 reached new record highs, driven by speculation of additional Federal Reserve easing to support the labor market despite inflation risks [2] - Stock indexes experienced mixed movements after the Fed cut interest rates by 25 basis points and indicated potential further cuts by the end of the year, influenced by hawkish comments from Fed Chair Powell regarding inflation [2][4] Economic Indicators - Weekly initial unemployment claims decreased by 33,000 to 231,000, indicating a stronger labor market than the expected 240,000 [4] - The September Philadelphia Fed business outlook survey increased by 23.5 to an 8-month high of 23.2, surpassing expectations of 1.7 [4] Sector Performance - Semiconductor stocks showed significant strength, particularly Intel, which surged by 20% following Nvidia's announcement of a $5 billion investment and collaboration on chip development [3][10] - Other notable gainers in the semiconductor sector included ASML Holding NV (+5%), Marvell Technology (+4%), and KLA Corp (+4%) [11] Company Movements - CrowdStrike Home rose by over 9% after discussing its AI strategy and providing a strong preliminary fiscal 2027 outlook [12] - IonQ increased by more than 5% after signing a Memorandum of Understanding with the US Department of Energy for quantum technology development [12] - 89bio saw a significant rise of over 86% following Roche's acquisition announcement for $3.5 billion [12] Stock Declines - Red Cat fell by more than 11% due to plans for a public stock offering [14] - Darden Restaurants dropped over 9% after forecasting adjusted EPS below consensus expectations [14] - ARM Holdings and Advanced Micro Devices both experienced declines of over 5% and 3% respectively, influenced by Nvidia's investment in Intel [15]