Semiconductor Stocks Soar on Intel Deal

Early this morning news came out that Nvidia is going to invest $5 billion into Intel, and that the two companies plan to develop semiconductors for PC and data center applications together. Coming on the heels of the US government recently taking a 10% stake, Intel shares are up 28.7% in premarket trading today, while Nvidia shares are up 3.3% premarket.

This news has reignited broader interest in the technology sector as well. NASDAQ futures are up 1.1% this morning, more than making back the 0.3% the NASDAQ lost yesterday after the Fed cut interest rates. Dow futures are up 0.6% while in Europe, the DAX and CAC are both up 1.3% and the FTSE is up 0.3%. Commodity action is mixed with Crude Oil up 0.6%, and Copper falling 0.3%.  

Yesterday the US central back delivered an expected 0.25% interest rate cut and forecast 1-2 more rate cuts for this year. US treasury yields and the US Dollar are quiet this morning.  Gold is down 0.50% trading just below $3,700/oz. The Bank of England held its benchmark rate steady at 4.00% this morning.

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