Nasdaq Index: Nvidia, Intel Moves Signal AI and Government Stakes in Focus Today

Midday Market Check: Traders Tread Lightly Ahead of Nvidia Earnings and Fed Clarity

Wall Street is off to a cautious start this week as traders take stock of Friday’s rally, Jerome Powell’s Jackson Hole remarks, and fresh signals from Washington. By midday, the S&P 500 had dipped slightly, the Dow was off by over 220 points, and the Nasdaq managed to grind higher, lifted by strength in semis.

Will Trump’s Intel Bet Reset Risk in Strategic Sectors?

Intel got a lift after President Trump doubled down on a 10% government stake, claiming it’s now worth $11 billion. What’s catching traders’ attention isn’t just the numbers—it’s the strategy.

The White House is treating this as a blueprint for a sovereign wealth approach, with more “all day long” deals on the table. That helped push up names like MP Materials, up nearly 7%, as defense and infrastructure plays caught a bid.

This kind of government backing changes how some traders are looking at risk and value—especially in sectors tied to national security. If this approach gains steam, it could mean fresh capital flows into previously overlooked names that fit the strategic bill.

Rate Cut Bets Climb, But Conviction Looks Thin

The Fed story is still front and center. After Powell’s Jackson Hole speech, traders pushed the odds of a September rate cut to 86%, up from 75% just days earlier. But not everyone’s buying it. CFRA’s Sam Stovall called Friday’s rally more about short covering than strong hands stepping in.

That skepticism is showing up in rate-sensitive corners of the market—Real Estate and Utilities are both down today. SolarEdge is a good case study: up 13% Friday on rate cut hopes, down 6% today on cold reality. It’s a reminder that without firm Fed guidance, sentiment can flip fast.

Nvidia Earnings: Can the AI Trade Stay Hot?

Nvidia is getting plenty of attention heading into Wednesday’s earnings. The stock’s up 2% today, buoyed by analyst optimism, but traders know the stakes are high. The broader tech space is leaning on Nvidia to keep the AI story going. A miss or muted forecast could take the air out of more than just one name.

Meanwhile, Intel is trading on fundamentals after the Trump stake news, showing how two major chip names are moving for very different reasons. That divergence says a lot about how traders are pricing near-term risk.

Where Are Traders Rotating Today?

There’s a clear sector lean showing up in midday action. Communication Services and Tech are leading, while defensives like Staples and Healthcare are getting sold. Energy’s barely green, helped by Crescent Energy’s $3.1 billion Vital Energy buyout, but overall interest seems muted.

Furniture stocks are under pressure again—Trump’s import investigation has RH down 4%, Williams-Sonoma off 2%, while Ethan Allen is up 1% as traders gravitate toward U.S.-based names.

Outlook: Positioning Cautiously Into a Packed Week

With Nvidia earnings, Fed expectations, and government equity plays all in motion, traders are staying active but selective. Rate cut odds are already high, so there’s limited upside from more dovish talk unless it’s backed by data.

Bottom line: this market feels tactical, not conviction-driven. Expect positioning to remain cautious until at least midweek, when Nvidia reports and traders get a clearer read on the next move from Washington and the Fed.

More Information in our Economic Calendar.