What’s News in Markets: Intel’s Win, Darden’s Struggles, FedEx on Tariffs

Summary

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.

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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]

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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]

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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]

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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]

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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]

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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.

Transcript

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[Jack Pitcher]

I'm Jack Pitcher for the Wall Street Journal and this is what's news in Markets, Our look at the biggest stock moves of the week and the news that drove them. Let's get to it. Stock investors cheered after the Federal Reserve delivered a long awaited interest rate cut this week. The central bank cut its benchmark rate by a quarter percentage point at the conclusion of its September meeting on Wednesday, and officials projected two more rate cuts by the end of this year. The cuts, which are coming after months of data showing a weakening labor market, are intended to stimulate the economy by making it cheaper to borrow. All three major stock indexes hit rates records this week, but that doesn't mean all of Wall street is confident about the economic outlook. Index gains have been juiced by a handful of trillion dollar tech companies, and lower rates also tend to boost stocks by making bonds look comparatively less attractive. Traders will be closely watching labor market data the rest of the year to see whether job gains begin to accelerate again. Any prolonged downturn in the labor market is likely to impact consumer spending and the stock market. For the week, The S&P 500 added 1.2%, while the Dow was 1.1% higher. The tech heavy Nasdaq Composite rose 2.2%. Intel notched a badly needed victory this week. On Thursday, the iconic US chip maker announced the AI darling Nvidia will be making a $5 billion investment in intel as part of a new product partnership. The investment pairs Nvidia, now the world's most valuable company, with intel, which has struggled for years as it fell almost completely out of the AI conversation. The partnership comes a month after the US government took a 10% stake in intel as part of an unusual turnaround effort backed by the Trump administration. Intel shares soared 23% on Thursday, their best single day performance since 1987. They also closed up 23% for the week.

[Commercial/Announcer]

Foreign.

[Jack Pitcher]

Investors weren't happy with the latest quarterly results from Darden Restaurants, the owner of brands including Olive Garden and Yard House. But the results included encouraging news for their customers. Darden raised its full year sales outlook but cautioned that higher food and labor costs, coupled with the company's push to keep prices low, will hurt earnings in the near term. 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. Costs rose faster than anticipated in the most recent quarter, and adjusted earnings missed Wall Street's estimates. Darden shares fell 13% for the week, their worst weekly performance in five years.

[Commercial/Announcer]

Foreign.

[Jack Pitcher]

Is struggling to contend with tariffs the shipping giant said US tariffs are expected to add $1 billion to its costs during fiscal year 2026, and an earnings call Thursday. The company said demand for shipping from China to the US Continues to shrink and it is reducing its capacity accordingly. Still, FedEx said US customers appear resilient, and strong domestic shipping numbers helped it log higher sales and profit in the first quarter. FedEx shares rose 2.3% Friday but remained down 18% for the year. And now you know what's news in markets this week. Today's show is produced by Zoe Kulkin and Rodney Davis with supervising producer Michael Kosmides. I'm Jack Pitcher. Have a great weekend and see you next Saturday.

[Commercial/Announcer]

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