September 18, 2025

Stocks pop after quarter point cut as tech leads and confidence steadies

A quarter point cut lifted market mood and pushed major indexes to fresh highs intraday. Tech led the move, small caps caught a bid, and sentiment improved as investors read the decision as cautious support for growth while inflation risks remain.

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Bryson Conder

The Fed is battling outside political pressure from the administration and a year of data that has changed in relevance to the correction timeline. A quarter cut makes sense as the beginning and then continuing with quarter cuts. I expect them to take it slow and manage the issue and signal that we are moving in the right direction. Inflation is right on the fence. That is why they are being cautious with a 25 percent cut. They know it is at a borderline and could re accelerate. Intel is set to make custom GPUs for Nvidia for integration into Nvidia’s AI infrastructure platforms and Nvidia custom x86 CPUs. A 25 percent gain in one day is a major shift in the fourth quarter for Intel. It returned to summer value in a day. That move was the main driver behind the S and P and Nasdaq jump. I expect a slowdown upcoming. This is a market opportunity people saw coming because the deal has been in motion. Regional banks showed a positive reaction. Buyouts, mergers, and consolidations are happening in places, but small cap banks saw a lift from the cut. The country needed positive sentiment. A no cut and a stay would have been bad for the narrative right now. This matched the timing of the plan from before. They delayed as long as they could. Now they are trying to cushion the overall impact.

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