Major U.S. stock indices finished the week with modest losses, concluding a volatile period influenced by economic data and shifting Federal Reserve sentiment. Despite the broader market downturn, several technology companies, including Electronic Arts, Intel, and Apple, recorded significant gains driven by major corporate developments.
Key Takeaways
- Major U.S. indices, including the S&P 500 and Nasdaq Composite, ended the week lower after a three-day losing streak was partially offset by a Friday rally.
- Electronic Arts (EA) stock surged 11.7% following reports of a potential $50 billion acquisition by a consortium of private investment firms.
- Intel (INTC) shares gained 4.4% amid news of a government plan to bolster domestic semiconductor manufacturing.
- Apple (AAPL) stock rose 4.6% for the week, fueled by strong consumer demand and positive analyst outlooks for its new iPhone 17 models.
Broader Market Declines Amid Economic Signals
Despite a positive close on Friday, U.S. stock markets ended the week in negative territory. The S&P 500 declined by 0.3%, while the tech-focused Nasdaq Composite fell 0.7%. The Dow Jones Industrial Average saw a smaller drop of 0.2%.
The small-cap Russell 2000 index also finished the week down 0.6%, indicating that investor caution was widespread across market segments. The market's performance was shaped by several key economic reports and policy announcements.
Economic Data Influences Investor Sentiment
Investors processed mixed economic signals throughout the week. The Personal Consumption Expenditures (PCE) price index, a key inflation measure for the Federal Reserve, showed the annual rate rising to 2.7%, which aligned with market expectations. Additionally, the second-quarter U.S. Gross Domestic Product (GDP) was revised upward to 3.8% from an initial estimate of 3.3%, suggesting a more resilient economy than previously thought.
Comments from Federal Reserve Chair Jerome Powell created uncertainty regarding future interest rate cuts. In a speech on September 23, Powell indicated the central bank would proceed with caution, tempering expectations for more aggressive monetary easing.
Adding to the policy-driven news, President Donald Trump announced new tariffs set to begin on October 1, 2025. These include a 100% tariff on certain pharmaceutical products and significant duties on imported furniture and heavy trucks, aimed at encouraging domestic production.
Intel Shares Rise on Domestic Chip Manufacturing Initiative
Intel (INTC) was a standout performer, with its stock climbing 4.4% for the week and reaching a 52-week high. The rally followed a report from The Wall Street Journal detailing a potential new government rule to promote domestic semiconductor manufacturing.
The proposed plan would require companies to ensure their domestic chip production matches the volume of chips their customers import from overseas. This 1:1 ratio is designed to significantly increase U.S.-based semiconductor output. The news also positively affected other U.S. chipmakers like Micron and Texas Instruments.
Year-to-date, Intel's stock has seen a remarkable 77% increase in value, reflecting renewed investor confidence in the company's strategic direction and the broader push for U.S. semiconductor independence.
This development comes after the U.S. administration acquired a 10% stake in Intel in August. According to reports, Intel has been in discussions with Apple and Taiwan Semiconductor Manufacturing Company (TSMC) to secure assistance with manufacturing and investment, a move that predates the finalization of the government's stake.
Electronic Arts Soars on Record Buyout Speculation
Video game publisher Electronic Arts (EA) experienced a dramatic surge, with its stock gaining 11.7% for the week. The increase was driven by a 14.8% jump on Friday after news emerged of a potential $50 billion acquisition that would take the company private.
The Wall Street Journal reported that a group of investors, including Saudi Arabia’s Public Investment Fund, Silver Lake, and Jared Kushner’s Affinity Partners, are in advanced negotiations for the deal.
If the acquisition is completed, it would represent the largest leveraged buyout in history, where a significant portion of the purchase price is financed through borrowing. Electronic Arts, known for popular game franchises like FIFA and The Sims, has seen its stock rise 32% year-to-date.
Strong iPhone 17 Demand Boosts Apple Stock
Apple (AAPL) shares gained 4.6% over the week as demand for its newly released iPhone 17 and iPhone 17 Pro models appeared stronger than anticipated. While the stock initially dipped around the September 9 launch event, it quickly recovered as sales data and analyst reports painted a positive picture.
The strong sales are reportedly supported by aggressive promotions from major U.S. wireless carriers. Bank of America analysts noted the positive impact of these deals on consumer activity.
Analysts Remain Bullish on Apple's Outlook
The positive sales trends have led to optimistic revisions from financial analysts. Evercore ISI raised its price target on Apple stock from $260 to $290, maintaining an "Outperform" rating. Bank of America also reiterated its "Buy" rating, citing strong upgrade activity among existing customers at carriers like Verizon.
Carrier Promotions Drive Upgrades
According to a note from Bank of America, management at T-Mobile reported that iPhone activations were up by double digits. Similarly, Verizon management pointed to strong upgrade activity within its customer base. These promotions are seen as a key factor in the early success of the iPhone 17 launch.
The extended shipment times for the new iPhone models, compared to last year's launch, further indicate that consumer demand is robust, providing a solid foundation for Apple's performance in the upcoming quarter.
