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Here are five key things investors need to know to start the trading day:
1. Fed meeting 101
The Federal Reserve lowered interest rates by a quarter-point yesterday. While the move was widely expected, the central bank’s economic projections and Chair Jerome Powell’s press conference left us with many clues as to what’s next for monetary policy.
Here’s what to know:
The Fed signaled that two more interest rate cuts could be in the cards this year, but it forecasted just one in 2026. Traders had been hoping for two to three next year.
Powell characterized yesterday’s rate decrease as a “risk management cut,” which could help to explain the stock market’s tempered reaction. The Dow ended the day in the green but significantly off session highs, while the S&P 500 and Nasdaq Composite closed the session lower.
Only one voter on the Fed’s rate-setting committee disagreed with the move. Fed Governor Stephen Miran, who was just confirmed by the Senate on Monday, called for a half-point decrease.
Here’s what the rate cut means for mortgages, car loans, credit cards and more.
Stocks are rallying in premarket trading as the dust settles. Follow live markets updates here.
2. Late night limbo
Randy Holmes | Contributor | Getty Images
Last night, ABC said it is pulling “Jimmy Kimmel Live!” off the air “indefinitely” following its host’s comments about the assassination of conservative activist Charlie Kirk.
CNBC can report that Kimmel has not been fired, according to a person familiar with the situation. Disney , ABC’s parent, plans to speak with Kimmel about what to say when he returns to air, the person said.
ABC’s move is latest high-profile example of media figures facing repercussions for comments about Kirk’s killing. MSNBC fired political analyst Matthew Dowd following his on-air comments, while The Washington Post let go of opinion columnist Karen Attiah over social media posts.
Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC and MSNBC. Versant would become the new parent company of CNBC and MSNBC upon Comcast’s planned spinoff of Versant.
3. Birds of a feather
Kent Nishimura | Reuters
Breaking news this morning: Nvidia is investing $5 billion in Intel . Shares of Intel soared more than 30% in premarket trading, putting the stock on track to notch its best day since 1973.
As part of the deal, the two chipmakers will co-develop data centers and PC chips. Nvidia CEO Jensen Huang and Intel CEO Lip-Bu Tan will hold a press conference to discuss the agreement, which is subject to regulatory approval, at 1 p.m. ET.
The deal comes weeks after the U.S. government took a 10% stake in Intel. Notably, Intel is the only American company that can make advanced chips domestically.
4. Flight plan
Gary Hershorn | Corbis News | Getty Images
Spirit Airlines told employees to prepare for a lighter schedule and more headcount reductions, CNBC’s Leslie Josephs learned last night.
The embattled budget airline is planning to reduce capacity by 25% in its November schedule compared with a year ago, CEO Dave Davis wrote in a memo sent yesterday. The executive also mentioned the potential for job losses or furloughs.
Fellow no-frills air carrier Frontier also made news yesterday. CEO Barry Biffle dismissed his United Airlines counterpart’s argument that the budget airline model is a thing of the past. Biffle’s exact choice of words: “That’s cute.”
5. Ben without Jerry
Brandon Bell | Getty Images
After nearly five decades, one half of the namesake duo behind Ben & Jerry’s ice cream is calling it quits.
In a public letter, co-founder Jerry Greenfield called the decision to leave the business “painful.” However, Greenfield said he couldn’t stay at the company “in good conscience,” saying parent company Unilever has curbed the brand’s ability to speak out on issues such as the conflict in Gaza.
Greenfield’s exit comes as Unilever prepares to spin off its ice cream business into a new publicly traded firm called the Magnum Ice Cream Company. A Unilever spokesperson said the company tried to “engage both co-founders in a constructive conversation on how to strengthen Ben & Jerry’s powerful values-based position.”
The Daily Dividend
Heavy truck sales are trending in a direction that has historically signaled a forthcoming recession. But some economists are wondering if the data instead underscores America’s economic shift away from manufacturing, and toward technology.