US Stocks at Records on Intel Surge, Fed Cut; Asia Awaits BOJ Decision

GLOBAL MOOD: Risk-on
Drivers: Fed Rate Cut, Intel-Nvidia Deal, US-UK Diplomatic Ties

Asian equities edged higher as investors awaited the Bank of Japan’s policy move, while US stocks hit record highs after the Fed’s rate cut boosted optimism, led by Intel’s surge on Nvidia’s $5 billion investment.
 

TODAY’S WATCHLIST
 - Japan Interest Rate Decision
 - Eurogroup Meeting

THE BIG STORY
UU President Donald Trump and British Prime Minister Keir Starmer celebrated the renewal of the “special relationship” on Thursday, concluding Trump’s unprecedented second state visit with a display of unity despite underlying policy differences. At a joint press conference, the leaders downplayed tensions over Gaza and wind power to emphasise collaboration, with Trump criticising Russia for continuing oil sales to other countries and Starmer highlighting the partnership’s potential benefits for jobs, growth, and household finances. 

Meanwhile, domestic sentiment in the UK remained weak: GfK reported its consumer confidence index fell to -19 in September from -17 in August, with economic outlook sentiment plunging to -32, reflecting concerns over rising taxes in Finance Minister Rachel Reeves’ upcoming November budget.

Data Spotlight
The number of Americans filing new applications for unemployment benefits fell last week, reversing the prior week’s spike, but the broader labour market continues to show signs of softening as both the demand for and supply of workers have slowed. According to the Labor Department on Thursday, layoffs remain relatively low, yet hiring has nearly stalled amid uncertainty, particularly linked to tariffs on imports. Initial claims for state unemployment benefits dropped 33,000 to a seasonally adjusted 231,000 for the week ended September 13, following a prior-week surge to 264,000, the highest level since October 2021.

Takeaway: Despite the pullback in claims, the data confirms a softening labour market, highlighting slowing hiring activity and ongoing economic caution among employers.

WHAT HAPPENED OVERNIGHT

• US stocks hits record highs as Intel surges on Nvidia investment
  
  • S&P 500, Nasdaq, and Dow Jones closed at record highs on Thursday.
    
  • Intel soared 22.8% after Nvidia announced a $5 billion investment in the company.
    
  • Nvidia rose 3.5%, recovering from Wednesday’s losses amid Chinese tech scrutiny.

• US Treasury yields rise after Fed rate cut, Powell signals further caution
  
  • Benchmark US Treasury 10-year note yield rose to 4.1% from below 4% after Wednesday’s Fed rate cut.
    
  • Markets assessed the global rate outlook following the Fed’s 25bps reduction.
    
  • Fed projected a median of two more cuts this year, with higher core inflation expectations.
  • Chairman Powell signalled that the single cut does not imply a preset path for future easing.

• US Dollar rebounds slightly after Fed rate cut, jobless claims
  • The US dollar strengthened toward 97.3 on Thursday after earlier lows this week.
  • Rebound follows the Fed’s first rate cut of the year and better-than-expected jobless claims.
  • Volatility persisted after Chair Powell’s press conference framing the move as a “risk management” cut.
  • Fed signalled an additional 50 basis points of cuts this year and another 25 basis points in 2026.

• Crude oil prices ease on concerns over US economic outlook
  
  • Brent crude oil declined following the US Federal Reserve’s first rate cut of the year.
    
  • Brent crude fell 0.8% to $67.44 a barrel, while US WTI crude dropped 0.8% to $63.57 a barrel.
    
  • Traders remain cautious amid worries about the US economic outlook.

Day’s Ledger

Economic Data

• India FX Reserves
• Japan Aug Inflation Rate
• US Fed Balance Sheet

Corporate Actions

• Earnings: Ashiana Ispat, Rajesh Exports, SGL Resources
• Dee Development to consider raising of funds
• Sampre Nutritions to consider stock split, bonus shares

Policy Events

• Japan Interest Rate Decision
• ECB Montagner Speech
• ECB Tuominen Speech
• ECOFIN Meeting
• Eurogroup Meeting

Tickers to Watch

• Heritage Foods cuts prices to pass on GST rate reduction benefits
  
• ITC to pass full GST rate cut benefits to consumers across products
  
• Maruti Suzuki says affordability won’t hurt sales after GST rejig
  
• Metropolis Health acquires Ambika Pathology Laboratory in Maharashtra
  
• PTC Industries unit commissions vacuum arc remelting furnace in Lucknow
  
• Sterling and Wilson receives ₹504 million tax demand from Kenyan agency
  
• TCS signs five-year pact with Vodafone Idea for business support system
  
• Vedanta named preferred bidder for manganese block in Andhra Pradesh
  

Must Read

• 'No violations': SEBI gives clean chit to Adani in Hindenburg case
• Oil ministry plans scheme to offset GST hike costs for upstream firms
• Industries should not hesitate to invest, expand capacities: FM Sitharaman
• SEBI calls for more institutional participation in infrastructure sector
• Corporates file $3.48 billion ECB intent in July, shows RBI data
• US-India tariff truce likely within the next two months: CEA Nageswaran
• US Leading Indicators Continue to Show Weakening Economy
• US Jobless Claims Fell Last Week
• Bank of England Leaves Key Rate on Hold, Slows Quantitative Tightening

See you tomorrow with another edition of The Morning Edge.

Have a great trading day.

India’s Gold Muscle Is Wasted Without Market Credibility

India imports 750–800 tonnes of gold annually, nearly one-fifth of global demand. Despite this scale, India remains price-taker, with London and New York setting benchmarks.

G. Chandrashekhar writes, the reasons are structural: opaque markets, smuggling, inconsistent policy, weak hallmarking, fragmented regulation, and lack of credibility in global value chains. Import power without trust is simply weight without voice.