WSJ What’s News in Markets – September 20, 2025

Episode Theme:
A roundup of the week’s largest stock moves and the major business headlines impacting U.S. markets, with special focus on the Federal Reserve’s rate cut, Intel’s breakthrough deal with Nvidia, Darden Restaurants’ financial challenges, and FedEx’s response to new U.S. tariffs.

1. Federal Reserve Rate Cut Drives Record Stock Highs

Main Points:

• The Fed cut its benchmark interest rate by 0.25 percentage points after months of labor market weakness, aiming to stimulate economic activity.
• Officials signaled two more potential cuts before year’s end.
• All major indexes set new records: S&P 500 up 1.2%, Dow up 1.1%, Nasdaq Composite climbed 2.2%.
• Gains were led primarily by a handful of trillion-dollar tech firms; overall Wall Street sentiment remains cautious due to uncertain economic outlook.
• Lower rates make stocks more attractive compared to bonds, fueling rallies.
• Continued scrutiny on labor market data; if weakness persists, it could depress consumer spending and stocks.

Notable Quote:

"All three major stock indexes hit record highs this week, but that doesn't mean all of Wall Street is confident about the economic outlook."
— Jack Pitcher [00:50]

2. Intel’s Landmark Partnership with Nvidia

Main Points:

• Intel secured a major win with Nvidia’s $5 billion investment, signaling renewed confidence in the legacy chipmaker.
• The deal marks a strategic product partnership, reviving Intel’s relevance in the AI chip space.
• The move follows the U.S. government’s recent 10% stake in Intel as part of a Trump administration-led turnaround.
• Intel shares surged 23% on Thursday — their best single-day gain since 1987, and ended the week up 23%.

Notable Quote:

"Intel notched a badly needed victory this week... Nvidia will be making a $5 billion investment in Intel as part of a new product partnership."
— Jack Pitcher [01:13]

Timestamp Highlights:

• Fed rate discussion: [00:20]–[01:00]
• Intel/Nvidia deal breakdown: [01:01]–[02:21]

3. Darden Restaurants: Higher Costs Hit Earnings

Main Points:

• Darden (Olive Garden, Yard House) raised full-year sales forecast but warned profits are under pressure from cost inflation.
• The company prefers to absorb increased food and labor costs rather than raise menu prices—“keeping prices below total inflation” is described as their “biggest investment.”
• Adjusted earnings missed expectations, and shares tumbled 13% on the week, their steepest decline in five years.

Notable Quote:

"The restaurant operator is absorbing the costs instead of raising prices, and its chief financial officer told investors Thursday that keeping prices below total inflation has been Darden's biggest investment in recent years."
— Jack Pitcher [02:50]

Timestamp Highlight:

• Darden segment: [02:30]–[03:14]

4. FedEx: Navigating Tariffs and Shifting Demand

Main Points:

• FedEx projects U.S. tariffs will add $1 billion to its costs in FY 2026.
• Declining demand for shipping China-to-U.S. goods is prompting a reduction in shipping capacity.
• Despite international headwinds, robust U.S. shipping demand drove higher-than-expected sales and profits in Q1.
• Shares rose 2.3% Friday but remain down sharply for the year (-18%).

Notable Quote:

"FedEx said US customers appear resilient, and strong domestic shipping numbers helped it log higher sales and profit in the first quarter."
— Jack Pitcher [03:43]

Timestamp Highlight:

• FedEx segment: [03:18]–[04:14]

5. Memorable Moments

• “[Intel’s] best single day performance since 1987.” — on the historic market reaction [01:56]
• “[Darden’s] worst weekly performance in five years.” [03:09]
• “US tariffs are expected to add $1 billion to its costs during fiscal year 2026…” — on FedEx’s tariff struggles [03:20]

Takeaway

This episode covers a week where massive shifts among iconic companies and macroeconomic policy decisions drove dramatic moves in the stock market. The Fed’s rate cut spurred new highs but uncertainty lingers. Intel’s partnership with Nvidia signifies a possible rebirth, Darden’s profitability is challenged by inflation and its choice to shield customers from rising costs, while FedEx copes with geopolitical disruptions and changing global demand.