Big Tech Rebound Lifts U.S. Indexes to New highs After Rate Decisions

Barry Adams
18 Sep, 2025
New York City

Wall Street indexes attempted to rebound a day after the Federal Reserve's policymakers preferred a gradual approach in tackling its dual mandate. 

The S&P 500 index increased 0.8%, and the tech-focused Nasdaq Composite advanced 1.0% after the Federal Reserve lowered its key lending rate range by 25 basis points.

Fed Chairman Jerome Powell stressed that policymakers are not sure about the future course of the rate path, but the so-called dot plot indicated two additional rate cuts in the remainder of the year. 

The policymakers are also estimating only one rate cut in 2026, as the committee held its annual outlook for the jobless rate at 4.5% and inflation at 3%. 

However, the GDP growth for 2025 was slightly revised higher at 1.6% from the previous estimate of 1.4% released after June's meeting.

 

U.S. Stock Movers 

Intel Corp. jumped 30% to $32.35 after Nvidia said it plans to invest $5 billion in the chipmaker to jointly develop PC products and data centers. 

Darden Restaurants dropped 7% to $194.30 after the parent company of Olive Garden reported mixed results for the fiscal first quarter ending on August 24. 

Same-store sales in the quarter increased 4.7%, driven by a 5.9% rise at Olive Garden, 5.5% at LongHorn Steakhouse, and a 0.2% decline in its fine dining segment.

Total sales increased 10% to $3.0 billion from $2.8 billion, net income advanced $257.8 million from $207.2 million, and diluted earnings per share increased to $2.19 from $1.74 a year ago. 

The company guided fiscal 2026 sales to increase between 7.5% and 8.5%, including 2% growth related to the 53rd week, and same-store sales to increase between 2.5% and 3.5%.

Cracker Barrel Old Country Store, Inc., dropped 9.3% to $44.99 after the restaurant and retail chain reported a 62% drop in quarterly profit in the fourth quarter ending on August 1, 2025.

Consolidated revenue decreased to $868 million from $894 million, net income dropped to $6.8 million from $18.1 million, and diluted earnings per share fell to 30 cents from 81 cents a year ago.

The company's board declared a quarterly dividend of $0.25 per share, payable on November 12 to shareholders on record on October 17.

The company also announced a new $100 million share repurchase program.