Group 1: Intel's Stock Surge - Intel's shares surged between 22.8% and 29%, marking its largest one-day gain since 1987, following Nvidia's announcement of a $5 billion investment and a strategic partnership to co-develop advanced chips [2][6] - The surge positioned Intel as one of the most overbought stocks on Wall Street, indicating a potential for price correction due to rapid price increases [2][6] Group 2: Market Impact - The rally in Intel's stock contributed to a broader market upswing, with the Dow, S&P 500, and Nasdaq Composite all closing at all-time record highs [3][6] - The tech sector, particularly semiconductors, experienced substantial gains, with Nvidia's shares also rising by 3.4% to 3.5% [3][6] Group 3: Federal Reserve Influence - Market sentiment was further boosted by the Federal Reserve's decision to implement a 25-basis-point interest rate cut, lowering the policy rate to 4.00%-4.25% [3]

Market Overview - Wall Street reached record-high closes following the Federal Reserve's first interest-rate cut of 2025 and Nvidia's announcement of a $5 billion investment in Intel, leading to a significant rally in major indexes [1][2] - The rate cut was influenced by signs of a softening jobs market and lower unemployment claims, raising expectations for further easing [2] Company Highlights Intel - Intel's stock surged nearly 23%, marking its largest one-day gain since 1987, after Nvidia's CEO Jensen Huang announced a partnership where Nvidia will become a "very large customer" of Intel CPUs [4] - The partnership will involve Nvidia supplying "GPU chiplets" for integration into Intel's products, combining Intel's x86 hardware with Nvidia's graphics and AI components [4] FedEx - FedEx reported Q1 fiscal 2026 revenue of $22.2 billion and adjusted earnings per share of $3.83, exceeding expectations of $3.62, driven by cost savings and stronger domestic parcel volumes [5] - The company also completed $500 million in buybacks and reaffirmed a revenue growth outlook of 4–6% for the year [5] IonQ - IonQ's shares jumped to all-time highs after signing a memorandum of understanding with the U.S. Department of Energy to demonstrate quantum-secure communications from space [6] - The company also acquired Vector Atomic, enhancing its quantum sensing capabilities [6] Bearish Trends Cracker Barrel - Cracker Barrel's shares fell sharply after its fiscal Q4 results showed revenue of $868.09 million, beating expectations, but adjusted earnings of $0.74 per share missed the $0.80 estimate [7] - The company provided soft guidance for fiscal 2026, projecting revenue between $3.35–$3.45 billion and adjusted EBITDA of $150–$190 million [7] Dave & Buster's - Dave & Buster's stock dropped approximately 15.25% after Q2 results revealed revenue of $557.41 million, missing the consensus of $562.78 million, and adjusted earnings per share of $0.40, falling short of the $0.92 expected [8] Nucor - Nucor's stock plunged after the company forecasted Q3 earnings of $2.05 to $2.15 per share, significantly below the Wall Street estimate of $2.61, citing expected earnings declines across all operating segments [9][10]

Core Insights - The Federal Reserve's interest rate cut is expected to benefit Coinbase Global (COIN) as it encourages investors to seek higher returns in riskier assets like cryptocurrencies [1][8] - Coinbase is well-positioned in the crypto market, offering a comprehensive financial account for consumers and a full-service prime brokerage for institutions [3][4] - Increased trading volume, driven by the shift towards equities and digital assets, is likely to enhance COIN's transaction revenues, which constitute over 50% of its top line [4][8] Company Positioning - Coinbase's strategic growth initiatives and its status as a leading "everything exchange" position it to capitalize on market opportunities [4] - The company benefits from a pro-crypto environment under the current administration, which has eased regulatory controls [2] Peer Analysis - Robinhood Markets (HOOD) is expected to see increased trading activity and transaction-driven revenues due to lower yields on traditional savings and bonds [5] - Circle Internet Group (CRCL) may face compressed reserve income from reduced rates but could benefit from increased stablecoin adoption [6] Financial Performance - COIN shares have appreciated by 38.5% year-to-date, outperforming the industry [7][8] - The company's price-to-earnings ratio stands at 52.56, significantly above the industry average of 25.71, indicating a potentially expensive valuation [10] Earnings Estimates - The Zacks Consensus Estimate for COIN's third-quarter 2025 EPS has decreased by 1 cent, while estimates for the fourth quarter and full-year 2025 remain unchanged [11] - Revenue estimates for 2025 and 2026 indicate year-over-year increases, while EPS estimates show a decline [12]

Market Overview - US stocks are experiencing a positive reaction following the Federal Reserve's first interest rate cut of the year, with major indexes reaching all-time highs. The S&P 500 is up 0.72%, the Dow is up 0.67%, and the Nasdaq has increased by 1.49% this week [1][2]. Federal Reserve Actions - The Federal Reserve's recent 25-basis point cut was the first since December of the previous year, with only one dissenting vote for a larger cut. Fed Chair Jerome Powell described this as a "risk management cut" in response to labor market softness, indicating potential for two more cuts this year [2][3]. Historical Context - Historically, the S&P 500 tends to rally after rate cuts following a long pause, with an average gain of about 15% over 12 months based on data since 1976. The current easing cycle began after the last rate hike in July 2023 [4]. Small-Cap Performance - Small-cap stocks are showing strong performance, with the Russell 2000 index recently hitting a new all-time high after a period of stagnation since November 2021. The forward P/E ratio of small-caps is at its lowest relative to large-caps since 1999, indicating potential for further growth [5][6]. Stocks to Watch - Credo Technology Group (CRDO) has seen a significant increase in its stock price, surging over 150% in 2025, and recently reported fiscal first-quarter earnings of 52 cents per share, exceeding estimates by 48.6% [8][9]. - IonQ (IONQ), a quantum computing company, has also experienced stock growth after acquiring Oxford Ionics, with expected revenue growth of 115% to $92.7 million this year, despite operating at a net loss [12][13]. Market Sentiment - The current market trend remains strong, with bullish sentiment not yet reaching cautionary levels, suggesting potential for further upside. Many individual stocks are outperforming, indicating a healthy market environment [15].

Group 1 - Mexico's central bank, Banxico, is expected to lower its benchmark interest rate by 25 basis points to 7.50% on September 25, marking the eleventh cut in a steady easing cycle due to weak economic conditions [1][2][3] - Economists are more concerned about the slow domestic economy than consumer price trends, with all 24 surveyed predicting the rate cut [2][3] - Recent economic data indicates a deceleration in growth and moderated inflation, supporting the decision for a rate cut [3][4] Group 2 - Analysts suggest that Banxico will continue to cut rates below market expectations as long as the U.S. Federal Reserve cuts rates and the U.S. dollar remains weak [5] - A majority of economists anticipate another 25 basis-point cut in November, following the September adjustment, as Banxico does not meet in October [5][6] - Projections indicate Mexico's interest rate could fall to 7.00% by the end of 2025, with further reductions expected in early 2026 [6][7]

Group 1 - The Federal Reserve's first interest rate cut in 9 months is expected to have a significant impact on Bitcoin trading, with traders likely taking about a week to fully digest the implications [1][2] - Analysts suggest that the current risk-on sentiment following the Federal Open Markets Committee (FOMC) meeting could serve as a tailwind for Bitcoin, with a potential test of the $120,000 mark in sight [2] - The market is anticipated to refocus on inflation and rate cuts after the initial reaction to the rate cut, with upcoming speeches from Federal Reserve officials expected to provide further insights [2][3] Group 2 - A prediction market indicates that 72% of users expect another 25-basis point rate cut in the upcoming October meeting, while nearly 11% believe rates will remain unchanged [3] - The CME FedWatch Tool shows that 92% of traders are anticipating a 25-basis point cut, with only 8% expecting the Fed to skip a cut next month [4] - Concerns remain regarding the stronger dollar and weaker bonds, but these are viewed as short-term reactions, as the bond market had overly priced in future cuts [4] Group 3 - U.S. economists forecast a month-over-month growth in core PCE at 0.22%, a decrease from 0.3% in July, with personal income and consumption growth expected to slow [5] - Bitcoin options activity indicates that traders are currently cashing in on premiums rather than waiting for a breakout, reflecting a cautious approach in the market [5]

One interest rate cut makes sense as insurance against the dangers that the jobs market is weakening too much. Going much further risks a mistake that America’s central bank cannot afford https://t.co/hUENf15q3q ...

Market Overview - Asian markets experienced fluctuations at the end of a strong week for investors following a US interest rate cut, with focus shifting to an upcoming call between Donald Trump and Xi Jinping [1] - The US Federal Reserve lowered borrowing costs for the first time since December, indicating a data-dependent approach for future rate reductions [2] - Major US stock indexes reached record highs, driven by a surge in technology stocks [3] Company Developments - Nvidia announced a $5 billion investment in Intel to jointly develop processors for PCs and data centers, highlighting collaboration in the tech sector [4] - The upcoming discussions between Trump and Xi are expected to address ownership changes for TikTok, reflecting ongoing trade negotiations between the US and China [5] Economic Indicators - Initial jobless claims in the US showed a sharp drop, yet expectations for continued rate cuts remain high due to the overall labor market trends [2][3] - The Bank of Japan is anticipated to maintain interest rates amid political uncertainty, with potential implications for future monetary policy [6][7]

One interest rate cut makes sense as insurance against the dangers that the jobs market is weakening too much. Going much further risks a mistake that America’s central bank cannot afford https://t.co/ICMTeqUMbV ...

Core Viewpoint - U.S. corporate bond deal-making in the investment-grade market increased on Thursday, driven by a quarter basis point rate cut from the Federal Reserve during its September meeting [1] Group 1 - The investment-grade corporate bond market experienced a resurgence in deal-making activity after a period of quiet earlier in the week [1]