Powell Sparks Market Rally: Intel, Tesla Lead as Nasdaq Jumps

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•  22 Aug 2025
 

Wall Street is powering higher this afternoon as investors cheer comments from Federal Reserve Chair Jerome Powell at Jackson Hole. Powell hinted that the Fed could begin cutting rates as early as September, igniting a broad risk-on rally across equities while the market remains open. The S&P 500 is up 1.6%, the Dow Jones adds 1.9%, and the Nasdaq climbs 2%. Small-cap stocks are leading the charge, with the Russell 2000 soaring nearly 4%. Bond markets are also reacting, with the 10-year Treasury yield sliding toward 4.25% as rate-cut expectations rise sharply.

Intel is jumping more than 5.5% after reports that Washington may convert part of its CHIPS Act support into a 10% non-voting equity stake worth around $11 billion. While some analysts warn this could dilute shareholders, investors are encouraged by the potential for stronger domestic chip production and renewed momentum in Intel’s advanced 18A technology process. Tesla is rallying over 5% to $335, sending its market cap back above $1 trillion. Powell’s dovish tone has investors flocking to growth stocks, and lower borrowing costs could provide a major tailwind for EV adoption and expansion.

SolarEdge is another standout, soaring nearly 10% on expectations that rate cuts will make solar financing more affordable and drive stronger demand. Zoom is surging more than 12% after raising its revenue and earnings outlook, Nvidia is holding gains despite halting production of its H20 chip for China, and Alphabet is up over 4% after striking a $10 billion cloud services deal with Meta to power massive AI data centers.

Overseas, markets are also responding. Despite a weak GDP report showing Germany’s economy shrank 0.3% in Q2, European stocks are higher, with the DAX, CAC, and FTSE all posting gains. In Asia, Japan’s bond yields surged to a 30-year high of 3.21% after July inflation came in at 3.1%, raising expectations that the Bank of Japan could hike rates before year-end.

With trading still underway, momentum remains firmly to the upside as Powell message drives optimism for a September rate cut. Intel, Tesla, and SolarEdge are among today’s biggest winners, and investors are watching closely to see if this rally carries into the close and signals the start of a more sustained bull run.

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