Trending stocks this week after Fed delivers jumbo rate cut

The S&P 500 (SP500) capped an eventful week with a 1.36% gain at 5,702.53 points. The benchmark index crossed the 5,700 level for the first time ever, in this week, that saw the Fed cut interest rates for the first time since the COVID-19 pandemic four years ago.

The Federal Open Market Committee (FOMC) slashed its federal funds rate by 50 basis points to 4.75%-5.00%, ending a nearly two-week debate over the size of the anticipated cut heading into the announcement.

These stocks were among those that were trending in Wall Street this week:

Apple (NASDAQ:AAPL) shares closed 2.8% lower Monday, after TF International Securities analyst Ming-Chi Kuo estimated iPhone 16 series first-weekend pre-order sales at about 37 million units, down about 12.7% YoY amid Apple Intelligence, is not available at launch alongside the iPhone 16 release and intense competition in the Chinese market. Kuo added that Apple and its supply chain partners are unlikely to change production plans “significantly” in the short-term and that the Cupertino, Calif.-based company could improve sales as its artificial intelligence system, Apple Intelligence, is released over time, and the holiday shopping season approaches.

Alibaba (NYSE:BABA) shares rose 4.8% after the company launched over 100 open-source AI models at its Apsara Cloud event. The Chinese tech giant also introduced a new text-to-video tool. These AI models, based on the Qwen 2.5 LLM, are designed for use in industries like automobiles, gaming, and scientific research, with enhanced math and coding capabilities. Ranging from 0.5B to 72B parameters, the models support over 29 languages, according to reports.

Intel (NASDAQ:INTC) was in focus on Tuesday after a series of moves, including a deal with Amazon (NASDAQ:AMZN) to manufacture a custom artificial intelligence chip for the Seattle-based tech giant. The semiconductor giant revealed plans to transform its foundry business into a standalone subsidiary, potentially opening the door for external investment.

NIO (NYSE:NIO) closed 7.6% higher Thursday after the electric vehicle company begun deliveries of its EL8 to European customers after launching at the beginning of the summer. NIO continues to expand presence in Europe despite the threat of punitive tariffs imposed by the European Union.

Dada Nexus (NASDAQ:DADA) shares closed 22% higher Wednesday after Chinese online retailer JD.com (NASDAQ:JD) acquired Walmart’s (NYSE:WMT) entire stake in the company. In a regulatory filing, JD.com confirmed the purchase of 87.5M ordinary DADA shares and 1.875M DADA ADSs, giving it a controlling 63.2% ownership. This development comes after Walmart recently sold its near 10% stake in JD.com.

Nike (NYSE:NKE) shares surged following the announcement of Elliott Hill’s return as president and CEO. He will resume his duties on October 14, 2024. The current CEO John Donahoe plans to retire on October 13, remaining as an advisor until January.

FedEx (NYSE:FDX) shares plummeted over 12% after the company reported weaker-than-expected FQ1 profit and sales. The shipping giant lowered its revenue and EPS growth projection.

Microsoft (NASDAQ:MSFT) hiked its quarterly dividend by 10% and approved a new share buyback of up to $60B. “Combined with mid-teens EPS growth, (the dividend hike) supports a durable strong mid-teens+ total return profile at MSFT, framing an attractive risk/reward,” Morgan Stanley said, adding that it remained Overweight on the stock.

Class A shares of Palantir Technologies (NYSE:PLTR) gained after Bank of America’s global research team added the data analytics software company’s stock to a list of “best investment ideas”. BofA’s action came ahead of Palantir’s (PLTR) inclusion into the benchmark S&P 500 (SP500) index later this month.