The morning after a big event can often be sluggish. That's not the case for markets, which have woken up to a new-found clarity after the Federal Reserve's first rate increase in three years. President Donald Trump seemed to have a sore head, though-opting to blame a "hostile" and "political" Fed board, rather than Chairman Kevin Warsh.
The market wouldn't usually relish the start of a rate-hiking cycle, but it craves certainty. The central bank penciled in one more quarter-point hike to come this year-so we can all move on for now.
Investors also love buying the dip-the S&P 500 has fallen 1.8% so far in September-and can take comfort in the Fed's approach to tackling inflation.
The Fed fallout is even enough for markets to brush aside artificial-intelligence safety fears. OpenAI revealed six incidents of "concerning behavior," but Marvell, Lumentum, and other hot AI stocks were higher in premarket trading regardless. Anthropic's upcoming IPO will thrust the safety issue back into the spotlight-and the world isn't ready.
But the stock market is ready to get back to winning ways.
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📈 Here's what's happening in markets today:
Stock futures are rallying after the Fed selloff as oil prices retreat.
AMD, Intel, Amazon, and more stocks that explain today's market.
Bank of England holds rates. It's on a different path from the Fed.
OpenAI reveals 6 'concerning' incidents. Why AI stocks are rising anyway.
Meta Muse may be the biggest AI launch since ChatGPT.
Nvidia stock still looks like a bargain based on this metric.
Nebius, CoreWeave jump. AI neoclouds are flexing their pricing power.
🏛? Fed's rate increase may signal willingness to raise further
The Fed's decision to raise interest rates comes after inflation cooled in June and July, though the latest August data continued to show elevated price growth. Chairman Kevin Warsh and others have said that it is imperative the Fed restore inflation to the central bank's 2% goal. It may signal policymakers are prepared to raise rates further.
🧠 IBM company seals deal for quantum chip foundry
Anderon, an IBM company, finalized a $1 billion award from the Commerce Department, structured as a research-and-development grant under the 2022 Chips and Science Act. The Trump administration's heavy-handed involvement in the quantum sector mirrors past intervention in semiconductors and critical minerals. Read more here.
? Generac's Amazon deal highlights growing data center business
Backup power equipment maker Generac has struck a deal with Amazon that highlights the growing importance of its business supplying generators to data centers. Initial deliveries are expected to total $2.4 billion across 2027 and 2028, and an Amazon subsidiary has the right to buy Generac stock if it spends up to $8 billion on Generac generators.
🎤 Salesforce grapples with a cloud outage during big confab
Salesforce lost access to its cloud software suite on Wednesday in the middle of its annual Dreamforce conference. Beyond serving as a product showcase, the Dreamforce event is a gathering place for big names in tech. Earlier this week people buzzed about whether companies should rein in their AI models. Read about the outage and aftermath.
🍎 Demand for new iPhones might be stronger than feared
Recent analyst data signals that Apple's iPhone 18 Pro demand might be stronger than Wall Street fears, a welcome sign for the tech company as it rolls out its higher end models. After introducing iPhone 18 Pro and Pro Max last week, preorders began on Sept. 12, with availability starting this Friday.
🤝 An EU-Canada tie up could complicate U.S. trade
The European Union's proposal to make Canada its first "associate member" ahead of Prime Minister Mark Carney's speech to the EU Parliament today could aggravate the spat between the U.S. and Canada. For now, the EU's invitation is more symbolic than substantial, but Barron's looked at the implications down the road.
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📲 How qualified are those finfluencers on the internet?
The internet is awash in videos created by self-styled financial influencers peddling investment strategies to an increasingly online audience eager for wisdom. Nearly all of them lack the qualifications considered necessary to give financial advice, this new analysis finds.
💬 Quote of the day:
Other headlines moving markets:
The world isn't ready for an Anthropic IPO.
Higher interest rates lead to more inflation, says this economist.
French bond yields are surging, too. Will the ECB step in?
Deteriorated housing market hits Lennar earnings.
From Cava to Texas Roadhouse. What a Fed rate hike means for restaurants.
OnSemi's new power platform fails to impress.
This biotech stock just got a rare double upgrade.
Boeing stock reacted to management's 737 MAX comments.
OpenAI's valuation can lift Oracle, CoreWeave.
Micron faces new threat to its U.S. memory chip supremacy.
These ETFs could thrive in a market beset with rate worries.
Diesel prices hit record high. An export ban is on the table.
Critics warn of AI-driven disaster. Novo, Anthropic are betting the opposite.
This quantum start-up just sold a computer in an untapped market.
Losing your Medicare plan? There's a silver lining.
-Edited by Liz Moyer, Stacy Ozol, and Patrick O'Donnell