The global markets were roiled by a series of intercurrents Thursday as US data on jobless benefits revealed signs of a cooling labor market. Nvidia’s multi-billion dollar investment sent Intel shares skyrocketing. India’s regulator of the market granted a reprieve to Adani Group. And US President Donald Trump expressed frustration over Russia’s military stance.
US unemployment claims fall but the labor market is weaker
Last week the number of Americans who filed for unemployment benefits dropped, but there are still signs that indicate a weaker job market.
The Labor Department reported that initial jobless claims fell by 33,000, to 231,000 seasonally-adjusted for the week ended September 13.
This decline partly reverses a surge in claims the week before, which reached their highest levels since October 2021.
The increase in fraudulent claims was largely due to the Labor Day Holiday, which led to an increase of applications from Texas.
The underlying trend is a tightening of the labor supply and a easing in demand.
The hiring of new employees has been slowed. Economists attribute this to tariffs, and stricter immigration regulations.
Jerome Powell, Federal Reserve chairperson, described the current situation as “a curious balance”, where supply and demand are both down.
Recent revisions indicate that payrolls could have been understated as much as 911,00 jobs in the last year.
Intel’s stock soars after Nvidia buys $5 billion stake
Intel’s shares soared by more than 23 percent on Thursday, after Nvidia revealed a $5 billion commitment to the chipmaker.
This deal will see Nvidia buy Intel shares for $23.28 per share. It pushed Intel’s stock up to its 52-week peak and was welcomed by many as an important vote of confidence towards the turnaround efforts.
Nvidia’s shares gained 3%.
Investment is not just financial. Nvidia plans to work with Intel on the next generation of chips, which will be used in both personal computers and data centres. This collaboration will combine Intel’s manufacturing capabilities and Nvidia AI expertise.
Intel has been struggling to compete with rivals such as TSMC, Samsung and others in the AI hardware market. The partnership could be a way to bridge the gap.
This deal also reflects broader strategic goals, namely to increase US chip production in the face of geopolitical tensions.
Nvidia is expected to increase domestic production capacity and reduce reliance on Asian Foundries.
SEBI Clears Adani Adani Adani related party allegations
SEBI, India’s Securities and Exchange Board of India, ruled Thursday that some transactions involving the Adani Group were not in violation of related-party disclosure rules.
According to the regulator, firms such as Adicorp Enterprises Milestone Tradelinks and Rehvar Infrastructure are not considered related under current regulations.
SEBI found transactions between the entities in question and Adani’s listed companies didn’t meet disclosure thresholds.
This decision is a partial respite for the conglomerate that has been under intense scrutiny following fraud allegations by Hindenburg Research since 2023.
Adani Group has repeatedly denied any wrongdoing and reiterated its compliance with the disclosure laws.
Trump shows frustration towards Putin
US President Donald Trump criticized Russian President Vladimir Putin for his failure to bring peace in Ukraine on Thursday.
Trump, speaking at Chequers with UK Prime Minister Keir starmer, said that he once thought the war was the “easiest” to resolve given his relationship with Putin.
Trump said that Russia might be forced to reconsider its conflict in the event of a sharp decline in oil prices and asked India and China for a reduction in Russian energy imports.
Starmer hosted his first US Presidential visit since taking up office and stressed the importance of unity in pursuit of security with Washington.
The following post Evening Digest: Trump criticises Putin; Intel surges on Nvidia Bet, Adani’s SEBI reprieve could be updated as new developments unfold.
