The small-cap rally just got real. The Russell 2000, America's small-cap benchmark as tracked by the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>), just smashed through old records, hitting 2,470 points on Thursday and topping <a href="https://www.benzinga.com/trading-ideas/small-cap-analysis/25/09/47746656/wall-street-thursday-stocks-today-intel-crowdstrike-nvidia-coinbase-solana">its November 2024 high. </a>



The move came one day after the Federal Reserve cut interest rates by 25 basis points, and hinted that more cuts could be coming soon—a clear green light for small, interest-rate-sensitive companies.



<h2 class="wp-block-heading">Chart: Small Caps Smash Prior Records Set In November 2021 And 2024</h2>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="556" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/09/18133018/image-320-1024x556.png" alt="" class="wp-image-1077318" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/09/18133018/image-320-1024x556.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/09/18133018/image-320-300x163.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/09/18133018/image-320-768x417.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/09/18133018/image-320-1536x834.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/09/18133018/image-320-2048x1112.png 2048w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



It's a notable reversal for a part of the market that's lagged for much of the post-COVID bull run.



But since the April&#8217;s tariff-driven selloff, small caps have rallied 43% outperforming the S&amp;P 500&#8217;s 37% gain. Since the August lows, small caps have outperformed the Nasdaq 100 – tracked by the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) – by nearly 8%, as Jeff Jacobson, analyst at 22V Research, highlighted in an emailed note.



"That trend could extend if rates continue to decline," Jacobson added.



The Federal Reserve's decision to lower rates to a 4.00%–4.25% target is already having ripple effects. Small caps—often the first beneficiaries of easier financial conditions—are now center stage.



Cheaper borrowing costs give smaller companies a fighting chance. These firms often carry higher debt loads and rely more heavily on credit to fund growth, making rate cuts especially impactful.



In its latest Summary of Economic Projection, the Fed pencilled in the potential for two more cuts in the remaining two meetings of the year and a further cut next year.



<h3 class="wp-block-heading">Russell 2000 Stocks That Exploded 20%+ On Thursday</h3>



Here's a look at eight of Thursday's biggest small-cap winners—each gaining more than 20% as the Russell 2000 surged:



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><thead><tr><th>Stock Name </th><th>% Change</th><th>What They Do</th></tr></thead><tbody><tr><td>89bio Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ETNB#NASDAQ">ETNB</a>)</td><td>+85.5%</td><td>Biotech firm focused on liver and cardio-metabolic diseases. Surged after positive trial data for its NASH treatment.</td></tr><tr><td>Quantum-Si Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QSI#NASDAQ">QSI</a>)</td><td>+27.4%</td><td>A protein sequencing company aiming to revolutionize next-gen diagnostics. Shares rose on biotech momentum.</td></tr><tr><td>Intellia Therapeutics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTLA#NASDAQ">NTLA</a>)</td><td>+23.8%</td><td>CRISPR-based gene editing company. Rally driven by renewed excitement in gene therapy.</td></tr><tr><td>Ramaco Resources (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/METC#NASDAQ">METC</a>)</td><td>+22.1%</td><td>Coal miner specializing in metallurgical coal used in steelmaking. Gained on commodity strength.</td></tr><tr><td>Humacyte Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HUMA#NASDAQ">HUMA</a>)</td><td>+21.9%</td><td>Makes bioengineered blood vessels and regenerative tissue. Jumped on regulatory progress.</td></tr><tr><td>Butterfly Network (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BFLY#NYSE">BFLY</a>)</td><td>+21.8%</td><td>Developer of handheld ultrasound devices. Benefited from rising medical tech adoption.</td></tr><tr><td>New Fortress Energy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFE#NASDAQ">NFE</a>)</td><td>+21.5%</td><td>Operates natural gas infrastructure and LNG supply. Surged as energy stocks caught a tailwind.</td></tr><tr><td>Acuren Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRN#NYSE">ACRN</a>)</td><td>+20.9%</td><td>Industrial services provider offering inspection, testing, and engineering. Rose after contract wins and strong outlook.</td></tr></tbody></table></figure>



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/economic-data/25/09/47741120/federal-reserve-policy-outlook-goldman-sachs-sees-more-rate-cuts-coming">The Fed&#8217;s Just Warming Up — Goldman Sachs Sees More Rate Cuts Coming</a></li>
</ul>



Image created using artificial intelligence via Midjourney.

Equities

Small Cap

BFLY

ETNB

HUMA

METC

NTLA

ACRN

Russell 2000 Hits All-Time Highs: 8 Stocks Power Small-Cap Comeback

When it comes to memes, Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) CEO Elon Musk <a href="https://www.benzinga.com/news/education/25/06/46157568/happy-birthday-elon-musk-54-facts-and-figures-about-tesla-spacex-ceo-on-his-54th-birthday">is a fan.</a> But when it comes to calling his electric vehicle company a "meme stock," he's not amused. One investing expert, however, argues that Tesla deserves the meme stock label given its current valuation.



What Happened: Tesla has often traded with a valuation higher than its automotive peers, a valuation that Ark Invest CEO Cathie Wood believes should <a href="https://www.benzinga.com/markets/penny-stocks/23/08/34102486/exclusive-cathie-wood-tells-benzinga-why-tesla-should-trade-as-a-tech-stock">be a reality.</a>



While experts argue whether Tesla should trade with a valuation of an automotive company or a technology company, the current valuation is significantly ahead of both sectors.



Sharing thoughts on Musk's new compensation package, Yale School of Management Senior Associate Dean Jeff Sonnenfeld didn't hold back with the meme stock analogy.



"This is the biggest meme stock we've ever seen," Sonnenfeld said in an interview with <a href="https://www.cnbc.com/video/2025/09/05/teslas-proposed-pay-package-is-foolish-and-reckless-but-shareholders-problem-yales-sonnenfeld.html">CNBC</a>.



The investing expert highlighted the price to earnings ratio of Tesla being above 200. On Benzinga Pro, the PE ratio is 253.5x on a trailing twelve-month basis and 169.5x on a forward basis.



"Even at its peak, Amazon was nowhere near this level. The PE on this, well above 200, is just crazy. When you've got stocks like Nvidia, the price-earnings ratio is around 25 or 30, and Apple is maybe 35 or 36." &nbsp;



Sonnenfeld said Tesla's valuation is "crazy."



"They've, I think, put a little too much emphasis on the magic wand of Musk."



Read Also: <a href="https://www.benzinga.com/analyst-stock-ratings/analyst-color/25/09/47745290/tesla-stock-price-forecast-elon-musk-pay-deliveries">Tesla Stock Surged 1,350% After Musk&#8217;s Last Pay Plan—New Package Could Ignite Gains, Analyst Says</a>



 Why It's Important: Asked about the new compensation plan for Musk, Sonnenfeld said it was "foolish" and "reckless" of the board and will turn into shareholders' problems.



The investing expert said no one is worth $1 trillion in compensation. Sonnenfeld also said that if Musk leaves Tesla, as he hinted at as a potential without a higher ownership percentage, he would be the person most impacted if the stock went down.



"He'd be the biggest loser," Sonnenfeld said.



In his interview, Sonnenfeld praised Musk&#8217;s talent and said there might not be anyone smarter or more entrepreneurial.



"He's a brilliant guy."



As for the premium valuation, Sonnenfeld also warned against shorting the stock.



"People shorting haven't done well due to timing."



Last month, Musk<a href="https://www.benzinga.com/trading-ideas/long-ideas/25/08/47130405/elon-musk-sends-warning-to-tesla-short-sellers-they-will-be-obliterated"> issued a warning</a> to investors betting against the electric vehicle company.



"If they don't exit their short position before Tesla reaches autonomy at scale, they will be obliterated," Musk said, referring to a list of the top companies with short positions in the stock.



Sonnenfeld said he hopes that a succession plan is laid out for Tesla with someone new ready to take the company into the next phase. The expert highlighted Tesla losing market share in Europe and China with BYD dominating in certain markets.



"There isn't a part of the world where Tesla isn't falling under Musk."



The expert said it's time for Musk to move on and time for someone who "won't cost a trillion dollars" to lead the company.



TSLA Price Action: Tesla stock was down 2.1% to $416.85 on Thursday versus a 52-week trading range of $212.11 to $488.54. Tesla stock is up 9.9% year-to-date in 2025. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;



Read Next: 



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/earnings/25/07/46587882/tesla-q2-earnings-highlights-revenue-and-earnings-fall-short-new-models-still-set-for-2025-2026">Tesla Q2 Earnings Highlights: Revenue And Earnings Fall Short; New Models Still Set For 2025–2026<span class="author" style="box-sizing: border-box; border: 0px solid rgb(229, 231, 235); --tw-scale-x: 1; --tw-scale-y: 1; --tw-pan-x: ; --tw-pan-y: ; --tw-pinch-zoom: ; --tw-scroll-snap-strictness: proximity; --tw-gradient-from-position: ; --tw-gradient-via-position: ; --tw-gradient-to-position: ; --tw-ordinal: ; --tw-slashed-zero: ; --tw-numeric-figure: ; --tw-numeric-spacing: ; --tw-numeric-fraction: ; --tw-ring-inset: ; --tw-ring-offset-width: 0px; --tw-ring-offset-color: #fff; --tw-ring-color: rgb(59 130 246/0.5); --tw-ring-offset-shadow: 0 0 #0000; --tw-ring-shadow: 0 0 #0000; --tw-shadow: 0 0 #0000; --tw-shadow-colored: 0 0 #0000; --tw-blur: ; --tw-brightness: ; --tw-contrast: ; --tw-grayscale: ; --tw-hue-rotate: ; --tw-invert: ; --tw-saturate: ; --tw-sepia: ; --tw-drop-shadow: ; --tw-backdrop-blur: ; --tw-backdrop-brightness: ; --tw-backdrop-contrast: ; --tw-backdrop-grayscale: ; --tw-backdrop-hue-rotate: ; --tw-backdrop-invert: ; --tw-backdrop-opacity: ; --tw-backdrop-saturate: ; --tw-backdrop-sepia: ; --tw-contain-size: ; --tw-contain-layout: ; --tw-contain-paint: ; --tw-contain-style: ;">&nbsp;</a></li>
</ul>



Photo: Shutterstock

Short Ideas

Tech

TSLA

Tesla 'The Biggest Meme Stock' Ever? Expert Says 'Too Much Emphasis On The Magic Wand Of Musk'

Billionaire investor David Tepper thinks stocks are considerably overvalued, but remains in the market because his number one rule is to never <a href="https://www.benzinga.com/trading-ideas/small-cap-analysis/25/09/47746656/wall-street-thursday-stocks-today-intel-crowdstrike-nvidia-coinbase-solana">fight the Federal Reserve.</a>



<ul class="wp-block-list">
<li>NVDA stock is moving higher. <a href="https://www.benzinga.com/quote/NVDA">See the real-time price action here.&nbsp;</a></li>
</ul>



<h2 class="wp-block-heading">"Don't Fight The Fed"</h2>



Tepper told CNBC on Thursday that his hedge fund Appaloosa Management remains bullish on the market, but only because the Fed has begun cutting rates.&nbsp;



Read Next:<a href="https://www.benzinga.com/crypto/cryptocurrency/25/09/47743954/nba-star-kevin-durant-forgot-his-coinbase-password-and-bitcoin-soared-11000"> NBA Star Kevin Durant Forgot His Coinbase Password—And Bitcoin Soared 11,000%&nbsp;</a>



The hedge fund manager sees valuations as way too high and the market "frothy" with excess liquidity.&nbsp; Tepper pointed to inflated multiples and a lack of supporting fundamentals as serious concerns.&nbsp;



"We're having a really good year and I'm so miserable for having a really good year," Tepper said.&nbsp;



"I don&#8217;t love the multiples, but how do I not own it?&#8221; he added.&nbsp;



Tepper reiterated he is not going against the tide of <a href="https://www.benzinga.com/markets/economic-data/25/09/47741120/federal-reserve-policy-outlook-goldman-sachs-sees-more-rate-cuts-coming">incoming rate cuts </a>and acknowledged that liquidity and policy direction can propel markets higher even when multiples aren't cheap.



"I am not ever fighting this Fed," Tepper said, adding, "especially when the markets tell me&#8230; one and three quarter more cuts before the end of the year, so that's a tough thing not to own."



<h2 class="wp-block-heading">Appaloosa's Top 10 Holdings</h2>



Appaloosa Management's top 10 holdings as of Q2 2025 highlight Tepper's focus on a concentrated, high-conviction portfolio balancing tech, healthcare and energy. 



According to the firm's most recent 13F filing, Appaloosa's top 10 holdings are: 



<figure class="wp-block-table"><table class="has-fixed-layout"><tbody><tr><td>Company</td><td>Portfolio Weight</td></tr><tr><td>Alibaba Group Holding Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>)</td><td>12.4%</td></tr><tr><td>UnitedHealth Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>)</td><td>&nbsp; 11.9%</td></tr><tr><td>Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>)</td><td>9.2%</td></tr><tr><td>Vistra Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VST#NYSE">VST</a>)</td><td>5.4%</td></tr><tr><td>NRG Energy, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NRG#NYSE">NRG</a>)</td><td>4.9%</td></tr><tr><td>Meta Platforms, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>)</td><td>&nbsp; 4.6%</td></tr><tr><td>NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)</td><td>4.3%</td></tr><tr><td>Alphabet, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>)&nbsp;</td><td>4.1%</td></tr><tr><td>Uber Technologies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBER#NYSE">UBER</a>)</td><td>4.0%</td></tr><tr><td>Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>)</td><td>3.9%</td></tr></tbody></table></figure>



Read Next:&nbsp;



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/trading-ideas/movers/25/09/47742879/quantum-stocks-boom-as-ionq-rigetti-join-government-initiatives">Quantum Stocks Boom As IonQ, Rigetti Join Government Initiatives</a>&nbsp;</li>
</ul>



Photo: Shutterstock

Large Cap

News

Hedge Funds

Markets

Movers

Trading Ideas

AMZN

BABA

GOOG

GOOGL

MSFT

NVDA

UBER

Billionaire David Tepper Won't 'Fight The Fed'—But He Hates This Market

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1024" height="649" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/09/18043340/Hollywood-China.jpg" alt="" class="wp-image-19059" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2025/09/18043340/Hollywood-China.jpg 1024w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/09/18043340/Hollywood-China-300x190.jpg 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/09/18043340/Hollywood-China-768x487.jpg 768w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<h2 class="wp-block-heading">Setting the Stage: AI, Copyrights, and a Global Showdown</h2>



A legal earthquake just struck the entertainment world: Hollywood's biggest studios including Disney, Universal, and Warner Bros. Discovery, have simultaneously <a href="https://www.scribd.com/document/917955361/Disney-v-MinMax" target="_blank" rel="noreferrer noopener nofollow">filed a blockbuster lawsuit against MiniMax</a>, a Chinese AI unicorn valued at $4 billion. The suit, alleging "willful and brazen" copyright infringement, accuses MiniMax of disregarding U.S. copyright law by treating the studios' copyrighted characters as if those were its own.



Far more than just another corporate dust-up, this suit signals the opening of a new front in a high-stakes battle over who will shape and profit from the future of creative AI content. For investors, it offers new perspectives on what types of AI companies might make for solid bets in the midst of these types of legal battles. &nbsp;



<h2 class="wp-block-heading">The MiniMax Affair: IP Violations and Willful Infringement</h2>



The case centers on MiniMax's <a href="https://hailuoai.video/" target="_blank" rel="noreferrer noopener nofollow">Hailuo AI platform</a>, which offers users the ability to generate high-quality, on-demand video mashups starring instantly recognizable film characters from Darth Vader to Marvel superheroes. MiniMax's Hailuo platform aggressively promoted itself as a "Hollywood studio in your pocket," letting its 157 million global users prompt the creation of videos featuring trademarked characters, costumes, and scenes from Mickey Mouse, Minions, and beyond.



<figure class="wp-block-video"><video controls src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/09/18043709/Hailuo_Video_micky-mouse-in-a-hot-air-ballo_424940172378284034.mp4"></video></figure>



Source: Hailuo-Generated by Andre Bourque



Not only did MiniMax commercialize content built on Hollywood's intellectual property, but it also advertised with those same protected icons. The company even overlaid their own branding onto the auto-generated works. 



Hollywood's response has been swift and severe. The studios are seeking up to $150,000 per instance of IP infringement and have highlighted MiniMax's disregard for multiple cease-and-desist letters as evidence of willful, and now legally actionable, copyright violations.



<h2 class="wp-block-heading">A Broader Trend: Copyright Wars Escalate</h2>



The MiniMax suit is the latest flare-up in what many are calling the "copyright wars of the AI age." Earlier this year, <a href="https://variety.com/2025/digital/news/disney-nbcuniversal-studio-lawsuit-ai-midjourney-copyright-infringement-1236428188/" target="_blank" rel="noreferrer noopener nofollow">Disney and Universal sued image generator Midjourney</a>. In the online media realm, <a href="https://www.benzinga.com/news/legal/25/06/46166993/east-vs-west-the-ai-data-battle-between-publishers-and-llms" target="_blank" rel="noreferrer noopener">The New York Times went after Open AI</a> for using its proprietary content to train its LLM platform.



The rationale is clear: Creators are moving aggressively to halt the unchecked use of their IP as large language and generative media models threaten to erode the core creative value proposition. For Hollywood, what&#8217;s at stake is a film industry that contributes <a href="https://www.motionpictures.org/research-docs/the-american-motion-picture-and-television-industry-creating-jobs-trading-around-the-world-6/#:~:text=January%2007%2C%202025,by%20the%20Motion%20Picture%20Association." target="_blank" rel="noreferrer noopener nofollow">more than $260 billion</a> to the U.S. economy each year.



<h2 class="wp-block-heading">Hollywood's Counteroffensive Strategies</h2>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1024" height="649" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/09/18050225/Hollywood-AI-fighting-andrebourque.jpg" alt="" class="wp-image-19062" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2025/09/18050225/Hollywood-AI-fighting-andrebourque.jpg 1024w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/09/18050225/Hollywood-AI-fighting-andrebourque-300x190.jpg 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/09/18050225/Hollywood-AI-fighting-andrebourque-768x487.jpg 768w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



Source: AI-Generated by Andre Bourque



To defend its creative and economic interests, Hollywood has launched a multi-faceted counteroffensive aimed at setting industry-wide standards and ensuring the protection of intellectual property in the age of advanced AI.



First and foremost, legal action remains a pivotal strategy. The high-profile lawsuit against China's MiniMax exemplifies Hollywood's resolve to establish clear legal precedents that require AI companies to secure proper licenses before training on copyrighted material. These courtroom battles are intended not only to secure direct compensation but to send a strong deterrent message to other AI startups and tech giants globally.



Secondly, the industry is asserting regulatory leadership. Landmark agreements like the Writers Guild of America's 2023 contract have <a href="https://www.wga.org/contracts/know-your-rights/artificial-intelligence" target="_blank" rel="noreferrer noopener nofollow">introduced sweeping AI protections</a> for writers and creative workers, establishing frameworks that are now serving as models for labor negotiations and regulatory policies across the world. This proactive stance extends Hollywood's influence into policy-making, encouraging governments to legislate on behalf of content creators in the face of rapid technological change.



A third front in the battle is technological innovation. Major studios are investing in and adopting new tools to safeguard original works. These include blockchain-based provenance systems, which provide traceable ownership and licensing data for creative assets, and AI-driven solutions like "Trace ID" that can automatically detect and flag unauthorized uses or deepfakes based on visual or audio signatures. By leveraging technology, Hollywood aims to both track and prevent the misuse of their IP in real time.



Beyond these, strategic partnerships and clean-room AI platforms have emerged as a critical defensive strategy. Hollywood is increasingly aligning with AI companies such as Adobe, which touts its Firefly product as being trained only on licensed or public domain material, and forming alliances with legaltech firms specializing in compliance and content-rights management. These collaborations foster the development of "clean-room" AI models that respect copyright law from the ground up.



<h2 class="wp-block-heading">What This Means for AI Investors</h2>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1024" height="649" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/09/18051826/Investor-Outlook-andrebourque.jpg" alt="" class="wp-image-19064" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2025/09/18051826/Investor-Outlook-andrebourque.jpg 1024w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/09/18051826/Investor-Outlook-andrebourque-300x190.jpg 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/09/18051826/Investor-Outlook-andrebourque-768x487.jpg 768w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



Source: AI-Generated by Andre Bourque



Collectively, these strategies not only reinforce Hollywood's role as a guardian of creative rights but also influence the AI investment landscape, steering capital toward companies and technologies that prioritize legal compliance, robust protection of intellectual property, and sustainable partnerships across the creative economy. 



Examples include:



<figure class="wp-block-image aligncenter size-full"><img loading="lazy" decoding="async" width="727" height="351" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/09/18054747/Hollywood-Investment-Table-andrebourque.png" alt="" class="wp-image-19066" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2025/09/18054747/Hollywood-Investment-Table-andrebourque.png 727w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/09/18054747/Hollywood-Investment-Table-andrebourque-300x145.png 300w" sizes="(max-width: 727px) 100vw, 727px" /></figure>



Source: Created by Andre Bourque



<h3 class="wp-block-heading">1. Clean-Room/Legally Licensed AI Platforms</h3>



As legal risks intensify for firms training AI models on unlicensed data, the future of the industry will demand that companies prove their platforms are developed using "clean" or fully licensed content. This shift creates significant opportunities for businesses that focus exclusively on utilizing licensed or public domain material, as exemplified by OpenAI's agreement with News Corp and Anthropic's recent settlements. 



Additionally, there is growing potential for providers of specialized copyright-detecting and monitoring software, as well as "AI model audit" services, all of which enable the verification and ongoing oversight of training data to ensure robust legal compliance in the evolving AI landscape.



<h3 class="wp-block-heading">2. AI Content IP Management &amp; Protection</h3>



As intellectual property emerges as a critical battleground in the age of AI, startups specializing in assisting media companies to track, license, and protect their digital assets are becoming indispensable; this rapidly growing landscape presents major opportunities for businesses offering blockchain-based digital rights management (DRM) solutions such as Hidden Pixels, platforms leveraging technologies like deepfake and provenance detection exemplified by "Trace ID" solutions, and innovative AI-powered copyright enforcement and litigation tools, all of which address the mounting challenges of safeguarding creative content and ensuring compliance in an increasingly automated, AI-driven world.



<h3 class="wp-block-heading">3. AI Cloud Infrastructure Providers</h3>



As Western governments and major conglomerates invest billions in new data centers and robust cloud infrastructure to ensure compliant AI training and deployment on the global stage, significant opportunities are arising for key players in this evolving landscape: major cloud providers like Microsoft Azure, Google Cloud, and Amazon AWS who are now prioritizing AI-focused services; infrastructure and niche data center REITs that support the growing needs of AI workloads; and innovative startups developing privacy-preserving cloud AI solutions or specialized model isolation technologies that safeguard data protection and regulatory compliance, positioning them at the forefront of the next phase in secure and scalable artificial intelligence development.



<h3 class="wp-block-heading">4. AI-Powered Creative Tools Legitimized</h3>



As demand for AI-assisted creative production continues to surge, the future will increasingly favor platforms that offer transparent licensing, robust partnerships, and strong protections for actors and creators; this market evolution creates compelling opportunities for generative AI startups that secure exclusive content deals, the development of "Hollywood-compliant" tools for generating video, audio, and images, and SaaS platforms designed to help studios, agencies, and advertising firms efficiently streamline the process of producing fully compliant content, thereby enabling creative industries to harness AI's capabilities without running afoul of copyright or talent protections.



<h3 class="wp-block-heading">5. Semiconductor &amp; AI Chipmakers (with Western Exposure)</h3>



The ongoing US-China chip wars highlight the critical need for next-generation, export-compliant AI hardware, opening up significant opportunities for US and EU-headquartered chip designers and fabricators such as Nvidia, AMD, Intel, ASML, and TSMC, while also driving demand for companies specializing in AI accelerators and advanced security chips; at the same time, startups focused on energy-efficient or privacy-first semiconductor solutions are uniquely positioned to support the industry&#8217;s pivot towards secure, regulatory-compliant, and high-performance AI infrastructure in an increasingly complex geopolitical landscape.



<h3 class="wp-block-heading">6. IP-Rich Content Owners &amp; Partnerships</h3>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="999" height="515" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/09/18163104/Disney-NYT-andrebourque-1.jpg" alt="" class="wp-image-19145" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2025/09/18163104/Disney-NYT-andrebourque-1.jpg 999w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/09/18163104/Disney-NYT-andrebourque-1-300x155.jpg 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/09/18163104/Disney-NYT-andrebourque-1-768x396.jpg 768w" sizes="(max-width: 999px) 100vw, 999px" /></figure>



Source: AI-Generated by Andre Bourque



Studios and intellectual property owners that can license their content at scale to AI firms are positioned to unlock significant new revenue streams, particularly as demand for high-quality, licensed training data intensifies; this creates valuable opportunities for film, music, comic, and gaming studios with extensive content catalogs, such as Disney, Universal Music Group, Warner Bros Discovery, and even The New York Times, while also fueling growth for firms specializing in brokering new AI-era licensing deals, which help bridge the gap between creative rights holders and technology companies eager for compliant, premium content.



<h3 class="wp-block-heading">7. Legaltech &amp; Regulatory Compliance AI</h3>



As the regulatory landscape surrounding AI evolves at a rapid pace, businesses face increasing pressure to maintain global compliance, driving strong opportunities for AI-powered legal research platforms, advanced regulatory compliance and contract management tools, and risk monitoring solutions; furthermore, specialized services focused on international intellectual property law and audit for AI are becoming essential, enabling companies to navigate complex legal frameworks, mitigate potential risks, and ensure their operations align with the latest requirements across jurisdictions worldwide.



<h2 class="wp-block-heading">Looking Forward</h2>



The MiniMax lawsuit is more than a dispute over beloved cartoon characters. It's a flashpoint in a much larger struggle for creative, technological, and cultural dominance worldwide. Will the next generation of artificial intelligence be constructed on the back of stolen IP, or founded on legitimate partnerships and investment? 



The answer will determine not just Hollywood&#8217;s future, but the very fabric of digital culture and ownership for decades to come. The gauntlet has been thrown. Hollywood has drawn a line in the sand, and the world is watching to see who will control the next frontier of creativity in the AI age.



The key for investors is to focus on companies and technologies that are proactively addressing the new legal, ethical, and geopolitical realities of AI. Compliance, partnership, and infrastructure will define the winners of this new era. My advice: avoid firms exposed to unresolved copyright or regulatory risks.



Feature Image: AI-Generated by Andre Bourque



Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga&#8217;s reporting and has not been edited for content or accuracy.

Entertainment

Opinion

Hollywood Takes On China's MiniMax: An AI Copyright Clash Investors Shouldn't Ignore

The Federal Reserve may have delivered its first rate cut in nine months on Wednesday — but according to Goldman Sachs, it likely <a href="https://www.benzinga.com/markets/economic-data/25/09/47723450/federal-reserve-interest-rate-decision-september-2025-dot-plot-economic-projections">won't be the last. </a>



In a new note to clients on Thursday, Goldman Sachs chief U.S. economist David Mericle said the Fed's 25-basis-point cut to a target range of 4.00%–4.25% is the opening move in what could become a sustained easing cycle, as economic risks shift from inflation to employment. 



"We continue to expect 25bp cuts in October and December — with a 50bp cut possible if the labor market weakens more than we expect," Mericle wrote. He added that two more cuts in 2026 could bring rates down to 3.00%–3.25%.



<h2 class="wp-block-heading">September Cut Signals A Series </h2>



Mericle highlighted five key takeaways from the September FOMC meeting that support his case for continued rate reductions.



<ol class="wp-block-list">
<li>The "dots" point lower: The Fed's updated Summary of Economic Projections (SEP) showed a median forecast for three rate cuts this year, outpacing Goldman's expectation of two. That 10-9 split in favor of more aggressive easing, Mericle said, likely reflects the influence of Fed leadership reacting to softer labor data.</li>



<li>Familiar dovish language is back: The FOMC's statement mirrored the tone used in September 2024 and at Powell's Jackson Hole speech — both moments that preceded consecutive rate cuts. Phrases like "job gains have slowed" and "downside risks to employment have risen" show the Fed is growing increasingly concerned about the labor market.</li>



<li>Powell is focused on the labor market — especially vulnerable groups: The Fed Chair acknowledged that while overall unemployment remains low, the labor market is cooling. He specifically highlighted rising challenges for minorities, young workers, and a cyclical decline in labor force participation — echoing the Fed's tone before its 2019 "insurance cut" cycle.</li>



<li>This was a "risk management" cut — and those don't come alone: Powell described Wednesday's decision as a precautionary step in response to downside risks. Mericle noted that similar moves in the past have usually been followed by consecutive cuts, not stand-alone actions.</li>



<li>Powell stressed the full path matters: In a nod to the bond market's expectations, Powell said the economic impact of rate cuts depends not just on today's move but on the path ahead — signaling a willingness to meet market expectations if downside risks persist.</li>
</ol>



<h2 class="wp-block-heading">What Could Accelerate The Pace Of Cuts?</h2>



While Goldman's base case includes 25bp cuts in both October and December, Mericle flagged that a larger 50bp cut could come if labor market data deteriorates more rapidly than expected.



That would mirror past Fed strategies — notably in 2019, when the Fed front-loaded its easing cycle as downside risks intensified.



Goldman's projected policy path remains slightly more dovish than current market pricing, suggesting traders may still be underestimating the Fed's willingness to cut.



Still, Mericle emphasized that while the Fed isn't panicking, its tone has clearly shifted.



"The strong vote for the 25-basis-point cut suggests that members, while acknowledging that downside risks to the job market have increased, are not panicking about the state of the economy," he wrote.



Speculators are currently pricing in an 88% probability of another Fed rate cut in October, and a 75% chance of a follow-up cut in December, according to the CME FedWatch Tool.



With the October FOMC meeting just weeks away, the focus now shifts to incoming labor market and inflation data. If job growth continues to slow or unemployment ticks higher, the Fed may be compelled to act again — especially if inflation stays contained.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/economic-data/25/09/47738832/mortgage-interest-rates-federal-reserve-refinancing-real-estate-stocks">This Mortgage Boom Didn&#8217;t Even Wait For The Fed To Say &#8216;Cut</a>&#8216;</li>
</ul>



Image created using artificial intelligence via Midjourney.

Analyst Color

Federal Reserve

Analyst Ratings

The Fed's Just Warming Up — Goldman Sachs Sees More Rate Cuts Coming

The Russell 2000, which tracks small caps, rallied on Thursday, outpacing large-cap benchmarks as investors piled into interest-rate-sensitive stocks a day after the Federal Reserve cut rates by 25 basis points and <a href="https://www.benzinga.com/markets/economic-data/25/09/47723450/federal-reserve-interest-rate-decision-september-2025-dot-plot-economic-projections">signaled more easing ahead.</a>



All three major large-cap indexes hit fresh records: the S&amp;P 500 rose to 6,650, the Dow Jones Industrial Average climbed to 46,200, and the tech-heavy Nasdaq 100 jumped 1.3% to 24,550.



Tech stocks led the charge. Intel Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) skyrocketed 29%—its best single-day gain on record—after Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) pledged a $5 billion investment to co-develop PC and data center chips. 



CrowdStrike Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRWD#NASDAQ">CRWD</a>) rallied 10.6% after unveiling long-term AI initiatives and revenue targets, forecasting annual recurring revenue growth above 20% by fiscal 2027.



Sector-wise, technology and industrials outperformed, while consumer staples lagged. Coinbase Global Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>) gained 7% as cryptocurrencies rallied on rate-cut optimism. 



Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) rose more than 1% to $118,000, its highest level in a month, while Solana (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/sol/usd">SOL</a>) jumped 4.5%, returning to levels last seen in late January 2025.



<h2 class="wp-block-heading">Small Caps Beat Large Caps</h2>



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td>Major Indices</td><td>Price</td><td>1-day %chg</td></tr><tr><td>Russell 2000</td><td>2,458.77</td><td>2.2%</td></tr><tr><td>Nasdaq 100</td><td>24,544.27</td><td>1.3%</td></tr><tr><td>S&amp;P 500</td><td>6,647.85</td><td>0.7%</td></tr><tr><td>Dow Jones</td><td>46,217.94</td><td>0.4%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated by 12:37 p.m. ET</figcaption></figure>



According to&nbsp;<a href="https://www.benzinga.com/pro/?utm_source=BZprocontent&amp;t=be2bearmibe3na1">Benzinga Pro</a>&nbsp;data:



<ul class="wp-block-list">
<li>The&nbsp;Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) rose 0.7% to $610.52.</li>



<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) inched 0.5% higher to $463.70.</li>



<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)&nbsp;rallied 1.3% to $597.50.</li>



<li>The&nbsp;iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) soared 2.3% to $244.27.</li>



<li>The&nbsp;Technology&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) outperformed, up 1.9%; the&nbsp;Consumer Staples&nbsp;Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) lagged, down 0.7%.</li>
</ul>



<h2 class="wp-block-heading">S&amp;P 500&#8217;s Top 5 Gainers On Thursday</h2>



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><thead><tr><th>Stock Name</th><th>% Change</th></tr></thead><tbody><tr><td>Intel Corp.</td><td>+28.12%</td></tr><tr><td>CrowdStrike Holdings</td><td>+10.97%</td></tr><tr><td>Synopsys Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SNPS#NASDAQ">SNPS</a>)</td><td>+10.56%</td></tr><tr><td>KLA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KLAC#NASDAQ">KLAC</a>)</td><td>+8.55%</td></tr><tr><td>Coinbase Global </td><td>+8.18%</td></tr></tbody></table></figure>



<h2 class="wp-block-heading">S&amp;P 500&#8217;s Top 5 Losers On Thursday</h2>



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><thead><tr><th>Stock Name </th><th>% Change</th></tr></thead><tbody><tr><td>Darden Restaurants (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>)</td><td>-8.90%</td></tr><tr><td>FactSet Research Systems (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDS#NYSE">FDS</a>)</td><td>-6.48%</td></tr><tr><td>Nucor Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NUE#NYSE">NUE</a>)</td><td>-5.10%</td></tr><tr><td>S&amp;P Global (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPGI#NYSE">SPGI</a>)</td><td>-4.44%</td></tr><tr><td>MSCI Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSCI#NYSE">MSCI</a>)</td><td>-2.91%</td></tr></tbody></table></figure>



Now Read:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/economic-data/25/09/47741120/federal-reserve-policy-outlook-goldman-sachs-sees-more-rate-cuts-coming">The Fed&#8217;s Just Warming Up — Goldman Sachs Sees More Rate Cuts Coming</a></li>
</ul>



Image: Shutterstock

Small Cap Analysis

$BTC

$SOL

COIN

CRWD

INTC

KLAC

MSCI

SNPS

SPGI

Small Caps Rally, Intel Rockets On Best Day Ever: What's Moving Markets Thursday?

The U.S. mortgage market is experiencing a resurgence not seen in years, as a sharp drop in borrowing costs prompted a wave of refinancing activity ahead of the Federal Reserve's widely expected interest rate cut—signaling that homeowners aren't waiting for policy confirmation <a href="https://www.benzinga.com/markets/economic-data/25/09/47723450/federal-reserve-interest-rate-decision-september-2025-dot-plot-economic-projections">to lock in savings.</a>



During the week ending Sept. 12, total mortgage application volume jumped 29.7% from the prior week, according to new data from the Mortgage Bankers Association (MBA). 



That's the largest weekly gain since January and the second-sharpest increase since the historic rate collapse during the COVID-19 crisis in March 2020.



<h2 class="wp-block-heading">Refi Frenzy Breaks Out as Mortgage Rates Fall</h2>



The surge coincided with a notable 10 basis point drop in the benchmark 30-year fixed mortgage rate, which fell to 6.39%, the lowest level in nearly a year. Refinancing activity led the wave, with the MBA's Mortgage Refinance Index skyrocketing 57.7% to 1,596.7, from 1,012.4 the week prior—its highest reading since March 2022. 



According to MBA chief economist Mike Fratantoni, this move shows borrowers are moving ahead of monetary policy in anticipation of lower rates.



"Homeowners responded swiftly, with refinance application volume jumping almost 60 percent compared to the prior week," Fratantoni said. 



"Homeowners with larger loans jumped first, as the average loan size on refinances reached its highest level in the 35-year history of our survey," he added.



<h2 class="wp-block-heading">Chart: Mortgage Refinance Index Rockets Ahead Of Fed Rate Move</h2>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="557" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/09/18091655/image-316-1024x557.png" alt="" class="wp-image-1076807" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/09/18091655/image-316-1024x557.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/09/18091655/image-316-300x163.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/09/18091655/image-316-768x417.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/09/18091655/image-316-1536x835.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/09/18091655/image-316-2048x1113.png 2048w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<h2 class="wp-block-heading">Market Moved Ahead Of The Fed </h2>



Fratantoni highlighted that the bond market, which sets long-term mortgage rates, reacted early to the Federal Reserve's dovish tilt. 



Despite the Fed only officially cutting rates by 25 basis points to 4.00%-4.25% on Wednesday, Treasury yields and mortgage rates had already begun their descent. 



"Mortgage rates, along with longer-term Treasuries moving in advance of this dovish shift in monetary policy, reached their lowest point for the year last week," he said. 



"If mortgage rates hold at these levels, origination activity will be boosted, both for homeowners who purchased in the last three years and for potential homebuyers." 



<h2 class="wp-block-heading">Fed Signals More Cuts Ahead </h2>



In its updated projections, the Fed signaled two additional cuts in 2025 and another in 2026, while also acknowledging a weaker labor market. 



Fratantoni described the policy move as measured, highlighting the Fed's effort to support employment without triggering panic about economic conditions. 



Though the 25-basis-point rate cut was not unanimous—with Trump-appointed Fed Governor Stephen Miran favoring a larger 50-basis-point move—the majority of policymakers supported the gradual approach. 



With mortgage rates easing and expectations for further rate cuts building, refinancing could remain strong through year-end. 



The combination of rising housing inventory, more favorable borrowing costs, and an improving economic backdrop may also breathe new life into the purchase market, which has struggled under the weight of 20-year high mortgage rates over the past two years.



<h2 class="wp-block-heading">Market Reactions: Real Estate Stocks Still Stuck</h2>



Despite the mortgage surge, real estate stocks have yet to reflect the improving rate environment.



The Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) has fallen for four straight sessions through Wednesday and is up just 3% year-to-date, significantly underperforming the broader market. For comparison, the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) has rallied nearly 12% in the same period.



The residential real estate sector has fared even worse. The Residential REIT ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HAUS#NYSE">HAUS</a>) is down 8% year-to-date, while the iShares Residential and Multisector Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REZ#NYSE">REZ</a>) is broadly flat.



Investor sentiment toward property stocks remains cautious, with many waiting for tangible signs of rent stabilization, occupancy growth, and more clarity on the Fed's next moves. But if lower rates persist and the refinance boom lifts housing demand, real estate equities may be poised for a long-overdue rebound.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/news/25/09/47717035/sp500-historical-performance-federal-reserve-interest-rate-cuts">History Warns: S&amp;P 500 Often Slips After Fed Rate Cuts</a></li>
</ul>



Photo: bilanol/shutterstock

Macro Economic Events

REIT

Sector ETFs

Econ #s

Economics

ETFs

Real Estate

HAUS

XLRE

This Mortgage Boom Didn't Even Wait For The Fed To Say 'Cut'

Jeff Bezos-<a href="https://www.benzinga.com/news/legal/25/09/47535904/jeff-bezos-backed-anthropic-to-pay-1-5-billion-in-ai-copyright-settlement-with-authors-after-13-billion-funding-round">backed</a> Anthropic CEO Dario Amodei has issued a stark warning about the importance of the U.S. maintaining its lead in chip technology, amid rising tensions with China.



<h2 class="wp-block-heading">Amodei Urges Safeguarding US Chip Edge</h2>



Speaking&nbsp;at the Axios AI+ DC&nbsp;Summit, Amodei highlighted the critical nature of the U.S.&#8217;s chip dominance over China,&nbsp;<a href="https://www.axios.com/2025/09/17/anthropic-ai-amodei-china">reported</a>&nbsp;Axios on Wednesday. He stated that this might be its only remaining advantage over China. 



&#8220;It may be the only advantage we have because we&#8217;re so far behind on things like munitions, ship building,&#8221; Amodei said



&nbsp;&#8220;It is mortgaging our future as as a country to to sell these chips to China,&#8221; he added. 



Amodei&#8217;s comments come in the wake of the U.S. government&#8217;s plans to allow companies like&nbsp;Nvidia&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and&nbsp;AMD&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) to keep selling chips to China, though a share of the revenue would be directed to the government. This move reflects the delicate balance&nbsp;between U.S. security interests and&nbsp;China&#8217;s increasing access to American-designed chips, as well as its ongoing pursuit of domestic alternatives.



The Anthropic CEO, however, firmly advocates for prioritizing security interests. &#8220;This could control the fate of nations. This could control the future of freedom and democracy,&#8221; he stated. 



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="Anthropic's Dario Amodei &amp; Jack Clark &amp; Axios' Jim VandeHei" width="500" height="281" src="https://www.youtube.com/embed/nvXj4HTiYqA?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div></figure>



See Also:&nbsp;<a href="https://benzinga.com/crypto/cryptocurrency/25/09/47723884/xrp-whales-offload-200-million-ahead-of-etf-launch-what-do-they-know" target="_blank" rel="noreferrer noopener">XRP Whales Offload 200 Million Ahead Of ETF Launch: What Do They Know? &#8211; Benzinga</a>



<h2 class="wp-block-heading">Criticizes Trump Over AI Export Rules</h2>



At the same time, Amodei's stance reportedly has placed him in conflict with the Trump administration, more so than other AI CEOs who had largely aligned themselves with the government's position on matters such as export controls.



&#8220;I think it could be the single most disastrous national security decision made in this term,&#8221; he said.



<h2 class="wp-block-heading">US Must Outpace China In AI Chips, Says Amodei</h2>



The warning from Amodei comes in the wake of China&#8217;s ban on its <a href="https://www.benzinga.com/markets/tech/25/09/47709575/china-bans-nvidia-chip-purchases-for-major-tech-firms-nvda-stock-falls-in-wednesday-pre-market">major tech firms</a> from purchasing Nvidia&#8217;s AI chips, a move that impacted Nvidia&#8217;s stock. This ban is part of China&#8217;s broader strategy to bolster its domestic chip industry and reduce reliance on American technology.



China&#8217;s efforts to strengthen its chip sector have <a href="https://www.benzinga.com/news/politics/25/09/47657618/us-semiconductor-sector-faces-anti-dumping-investigation-by-china-ahead-of-trade-discussions">also included</a> an anti-dumping investigation into the U.S. semiconductor sector. These developments underscore the growing competition between the U.S. and China in the global chip market, further emphasizing the significance of Amodei&#8217;s warning.



When asked about reports that Chinese authorities had instructed companies not to purchase Nvidia&#8217;s latest chips, Amodei said that despite the dangers of the technology and the need for guardrails, he believed it was crucial for the U.S. to defeat China in this field.



READ NEXT:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/tech/25/09/47712793/nvidias-china-strategy-in-shambles-beijing-blocks-chips-amid-antitrust-probe">Nvidia&#8217;s China Strategy In Shambles—Beijing Blocks Chips Amid Antitrust Probe</a></li>
</ul>



Image via Shutterstock



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Government

Politics

Startups

Could Selling Chips To China Be America's Most Dangerous Mistake Yet?

Apple Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) is reportedly considering the possibility of test-producing foldable iPhones in Taiwan.



<h2 class="wp-block-heading">Apple Eyes Taiwan Pilot Line For Foldable iPhone Production</h2>



Apple has been in discussions with its suppliers regarding the potential establishment of&nbsp;a test production line for&nbsp;foldable iPhones in Taiwan,&nbsp;Nikkei Asia&nbsp;<a href="https://asia.nikkei.com/spotlight/supply-chain/apple-explores-possible-test-production-of-foldable-iphones-in-taiwan">reported</a> on Thursday. The company plans to manufacture approximately 95 million iPhones for its 2026 lineup, marking the highest production in years and a more than 10% increase over 2025.



Check out the current price of&nbsp;<a href="https://benzinga.com/quote/AAPL" target="_blank" rel="noreferrer noopener">AAPL stock here</a>.



Apple's proposed plan would also enable it to accelerate the shift of its new product development away from China amid ongoing Beijing–Washington tensions. The company aims to utilize the engineering capabilities and ecosystem of its Taiwanese suppliers to establish a small pilot line, testing equipment and fine-tuning the manufacturing process for its foldable iPhone, according to the report. 



After completing these steps, the process will be replicated in India for large-scale production. This strategy is expected to accelerate Apple's learning curve and facilitate a seamless production rollout in the country, the report said. 



Apple may set up a pilot production line for a foldable iPhone in northern Taiwan, though plans are still tentative. The company expects the foldable model to drive demand for all iPhone models.



See Also:&nbsp;<a href="https://benzinga.com/markets/equities/25/09/47732288/aptevo-therapeutics-surges-over-46-after-hours-on-breakthrough-aml-treatment-results" target="_blank" rel="noreferrer noopener">Aptevo Therapeutics Surges Over 46% After Hours On Breakthrough AML Treatment Results</a>



<h2 class="wp-block-heading">$600 Billion US Investment Sparks Growth Outlook</h2>



Apple&#8217;s&nbsp;potential Taiwan-India production strategy is&nbsp;viewed as a means to mitigate risks and logistical hurdles arising from tensions between&nbsp;the U.S. and China,&nbsp;as well as between China&nbsp;and India.



This move also aligns with Apple&#8217;s recent announcement of a record $600 billion investment in U.S. manufacturing. This investment is expected to benefit 79 factories <a href="https://www.benzinga.com/markets/tech/25/09/47685275/tim-cook-says-apple-will-invest-600-billion-in-us-manufacturing-creating-a-domino-effect-as-iphone-17-pre-orders-show-strong-momentum">nationwide </a>and spark a &#8220;domino effect&#8221; of growth, as CEO&nbsp;Tim Cook&nbsp;believes



Analysts are also bullish on Apple&#8217;s future, with some predicting that the stock could&nbsp;<a href="https://www.benzinga.com/analyst-stock-ratings/price-target/25/09/47712663/apple-to-rally-more-than-28-here-are-10-top-analyst-forecasts-for-wednesday">rally by more than 28%</a>. Meanwhile, the demand for Apple&#8217;s latest iPhone 17 series is reportedly&nbsp;<a href="https://www.benzinga.com/analyst-stock-ratings/analyst-color/25/09/47672027/apple-iphone-17-demand-tracking-modestly-ahead-of-iphone-16-heres-which-model-is-winning">tracking modestly</a> ahead of the iPhone 16. The new smartphone is outperforming its predecessor, according to JPMorgan analyst&nbsp;Samik Chatterjee.



<figure class="wp-block-image aligncenter size-full"><a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound"><img loading="lazy" decoding="async" width="453" height="271" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/09/18044452/image-302.png" alt="" class="wp-image-1076225" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/09/18044452/image-302.png 453w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/09/18044452/image-302-300x179.png 300w" sizes="(max-width: 453px) 100vw, 453px" /></a></figure>



According to Benzinga Edge Stock Rankings, Apple has a growth score of 29.66% and a momentum rating of 56.81%. Click <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">here to see how</a> it compares to other leading tech companies.



READ NEXT:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/tech/25/09/47707819/gene-munster-calls-liquid-glass-ios-26-and-iphone-17-hardware-refresh-good-news-for-apples-growth-in-fy-26">Gene Munster Calls Liquid Glass iOS 26 And iPhone 17 Hardware Refresh &#8216;Good News&#8217; For Apple&#8217;s Growth In FY 26</a></li>
</ul>



Image via Shutterstock



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

AAPL

Is Apple Quietly Preparing Its Biggest iPhone Shift Yet?

As the Federal Reserve embarked on the second year of its rate-cutting cycle after its last cut in September 2024, historical data points to potentially significant gains for the S&amp;P 500, with an average return of over 16% in the second year following initial cuts.



<h2 class="wp-block-heading">S&amp;P 500 Poised To Soar In Absence Of Recession</h2>



However, a crucial caveat remains: these robust returns are contingent on the U.S. economy successfully sidestepping a recession.



According <a href="https://www.lpl.com/research/blog/will-stocks-rally-through-year-two-of-the-fed-cutting-cycle.html">to</a> Jeff Buchbinder, Chief Equity Strategist at LPL Financial, &#8220;Year two of rate-cutting cycles has historically delivered solid gains for stocks — provided the economy avoids recession.&#8221;



The first year of the current cycle, which commenced with a half-point cut on Sept. 18, last year, saw the S&amp;P 500 deliver a strong return of over 17% for the whole year till Sept. 18, 2025. This surpassed the historical average gain of 9.6% for year one.



The Fed cut its target federal funds rate by another quarter point on Wednesday, marking a continuation of its easing policy.



<h2 class="wp-block-heading">What Does The S&amp;P 500&#8217;s Historical Performance Tell Us?</h2>



Historical analysis over the past 50 years reveals a consistent pattern of positive stock performance during rate-cutting cycles. While the average gain in year one was 9.6% and the median return stood around 16.4%, year two has historically seen even better performance, averaging 16.4% with a median of 14.4%.



&#8220;We would happily accept these returns over the next twelve months,&#8221; Buchbinder noted, though acknowledging current &#8220;lofty valuations&#8221; could temper expectations.



<figure class="wp-block-image aligncenter size-large is-resized"><img loading="lazy" decoding="async" width="1024" height="559" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/09/18035719/image002-9-1024x559.png" alt="LPL Research: Year Two of Fed Rate-Cutting Cycles Tends To Be Good for Stocks - If Recession Is Averted
" class="wp-image-1076118" style="width:920px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/09/18035719/image002-9-1024x559.png 1024w, <a href="https://editorial-assets.benzinga.com/wp-content/uploads/2025/09/18035719/image002-9-300x164.png" title="https://editorial-assets.benzinga.com/wp-content/uploads/2025/09/18035719/image002-9-300x164.png">https://editorial-assets.benzinga.com/wp-content/uploads/2025/09/18035719/image002-9-300x164.png</a> 300w, <a href="https://editorial-assets.benzinga.com/wp-content/uploads/2025/09/18035719/image002-9-768x419.png" title="https://editorial-assets.benzinga.com/wp-content/uploads/2025/09/18035719/image002-9-768x419.png">https://editorial-assets.benzinga.com/wp-content/uploads/2025/09/18035719/image002-9-768x419.png</a> 768w, <a href="https://editorial-assets.benzinga.com/wp-content/uploads/2025/09/18035719/image002-9-1536x838.png" title="https://editorial-assets.benzinga.com/wp-content/uploads/2025/09/18035719/image002-9-1536x838.png">https://editorial-assets.benzinga.com/wp-content/uploads/2025/09/18035719/image002-9-1536x838.png</a> 1536w, <a href="https://editorial-assets.benzinga.com/wp-content/uploads/2025/09/18035719/image002-9-2048x1117.png" title="https://editorial-assets.benzinga.com/wp-content/uploads/2025/09/18035719/image002-9-2048x1117.png">https://editorial-assets.benzinga.com/wp-content/uploads/2025/09/18035719/image002-9-2048x1117.png</a> 2048w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



Source: LPL Research, Bloomberg, Federal Reserve 09/16/25



See Also: <a href="https://www.benzinga.com/news/25/09/47717035/sp500-historical-performance-federal-reserve-interest-rate-cuts" target="_blank" rel="noreferrer noopener">History Warns: S&amp;P 500 Often Slips After Fed Rate Cuts</a>



<h2 class="wp-block-heading">Prerequisites For Robust S&amp;P 500 Returns</h2>



The critical distinction lies in the economic environment. Stocks experienced declines during rate-cutting cycles that coincided with recessions, such as 1980–81, 2001, and 2007.



For stocks to continue their upward trajectory in the next 12 months, sustained economic growth is essential. This growth, experts believe, could be supported by stable interest rates, cooling inflation, fiscal stimulus, and ongoing investment in artificial intelligence.



<h2 class="wp-block-heading">What Could Impede S&amp;P 500&#8217;s Gains?</h2>



While the outlook remains constructive, the macroeconomic environment is &#8220;far from assured,&#8221; according to Buchbinder. Potential headwinds include deficit spending impacting long-term rates, a stalled job market sparking recession fears, legal challenges to tariffs, and geopolitical risks.



Despite these uncertainties, the consensus suggests that &#8220;Markets like rate cuts that are a luxury, not an emergency,&#8221; positioning the current backdrop as favorable for equities, provided recession risks remain low.



<h2 class="wp-block-heading">Price Action:</h2>



The S&amp;P 500 index has advanced 12.47% year-to-date, 17.48% over the year and 98.84% over the last five years.



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, fell on Wednesday. The SPY was down 0.12% at $659.18, while the QQQ declined 0.20% to $590.00, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



On Thursday, the futures of the Dow Jones, S&amp;P 500, and Nasdaq 100 indices were higher.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/macro-economic-events/25/09/47732133/fed-dot-plot-reveals-shallow-easing-path-for-2026-experts-say-dont-expect-many-more-reductions-as-split-of-dots-is-something-to-behold">Fed Dot Plot Reveals Shallow Easing Path For 2026; Experts Say Don&#8217;t Expect &#8216;Many More Reductions&#8217; As Split Of Dots Is &#8216;Something To Behold&#8217;</a></li>
</ul>



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.



Photo courtesy: Shutterstock

Market Summary

Futures

S&P 500 Historically Returns Over 16% In Year Two Of Fed Easing Cycle, But Only If 'Recession Is Averted'

Editor&#8217;s Note: The future prices of benchmark tracking ETFs, the lede, and the latest economic releases were updated in the story.



U.S. stock futures advanced on Thursday following Wednesday&#8217;s mixed moves. Futures of major benchmark indices were higher.



Initial jobless claims fell to 231,000 in the week ending Sept. 11, down from the previous 264,000 claims last week and below the 241,000 consensus forecast.



Based on the September Philadelphia Fed Manufacturing Business Outlook Survey, regional manufacturing activity has shown overall expansion. The survey&#8217;s key indicators for current general activity, new orders, and shipments all saw increases, with general activity and new orders moving into positive territory. The diffusion index for current general activity rose 24 points to 23.2 in September, its highest reading since January



Meanwhile, Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) announced that it&#8217;s investing $5 billion in Intel Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ITC#NASDAQ">ITC</a>) and it will collaborate with the struggling semiconductor company on products, pushing the stocks of both the firms higher in premarket.



A <a href="https://www.benzinga.com/markets/economic-data/25/09/47723450/federal-reserve-interest-rate-decision-september-2025-dot-plot-economic-projections">25-basis-point rate cut</a> was delivered by the Federal Reserve, with Fed Chair Jerome Powell signaling more easing could be coming, as a part of &#8220;risk management&#8221; with the shift partly driven by a cooling labor market and growing downside risks to employment.



The 10-year Treasury bond yielded 4.05% and the two-year bond was at 3.52%. The CME Group's FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool</a>&#8216;s projections show markets pricing an 89.8% likelihood of the Federal Reserve cutting the current interest rates in its October meeting.



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Dow Jones</td><td>0.75%</td></tr><tr><td>S&amp;P 500</td><td>0.89%</td></tr><tr><td>Nasdaq 100</td><td>1.06%</td></tr><tr><td>Russell 2000</td><td>1.50%</td></tr></tbody></table></figure>



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, rose in premarket on Thursday. The SPY was up 0.76% at $664.22, while the QQQ advanced 1.15% to $596.77, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="Futures Jump Following Fed Rate Cut—Broadcom, Cracker Barrel, FedEx In Focus" width="500" height="281" src="https://www.youtube.com/embed/AeDbc-aG18Q?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div></figure>



<h2 class="wp-block-heading">Cues From Last Session</h2>



Most sectors on the S&amp;P 500 closed positively on Wednesday, with consumer staples, financial, and materials stocks posting the biggest gains. However, information technology and industrials bucked the market trend, closing lower. This contributed to a mixed settlement for U.S. stocks.



Among individual companies, General Mills Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GIS#NYSE">GIS</a>) reported fiscal 2026 first-quarter results that came in slightly ahead of Wall Street expectations. In contrast, Manchester United PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MANU#NYSE">MANU</a>) shares fell more than 6% on Wednesday after the company reported mixed fourth-quarter financial results.



Economic reports showed U.S. housing starts dipping 8.5% month-over-month to an annual rate of 1.307 million units in August, missing market estimates of 1.37 million and following a revised 1.429 million in the previous month. Building permits also declined by 3.7% to an annualized rate of 1.312 million in August.



The Dow Jones index ended 260 points or 0.57% higher at 46,018.32, whereas the S&amp;P 500 index fell 0.097% to 6,600.35. Nasdaq Composite declined 0.33% to 22,261.33, and the small-cap gauge, Russell 2000, gained 0.18% to end at 2,407.34.



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>-0.33%</td><td>22,261.33</td></tr><tr><td>S&amp;P 500</td><td>-0.097%</td><td>6,600.35</td></tr><tr><td>Dow Jones</td><td>0.57%</td><td>46,018.32</td></tr><tr><td>Russell 2000</td><td>0.18%</td><td>2,407.34</td></tr></tbody></table></figure>



<h2 class="wp-block-heading">Insights From Analysts</h2>



As the Federal Reserve enters the second year of its monetary easing, which began in September 2024, history suggests the S&amp;P 500 could see substantial growth. On average, the index has returned over <a href="https://www.benzinga.com/markets/equities/25/09/47732445/sp-500-historically-returns-over-16-in-year-two-of-fed-easing-cycle-but-only-if-recession-is-ave">16% in the second year</a> of rate-cutting cycles. However, this optimistic outlook depends entirely on the U.S. economy avoiding a recession.



According to Jeff Buchbinder, Chief Equity Strategist at LPL Financial, "Year two of rate-cutting cycles has historically delivered solid gains for stocks — provided the economy avoids recession."



The first year of this cycle, which started with a 0.5% cut on September 18, 2024, has already been strong. The S&amp;P 500 posted a return of over 17% through September 18, 2025, easily beating the historical first-year average of 9.6%. The Fed continued easing policy on Wednesday with another quarter-point rate reduction.



Analysis of the last 50 years shows a clear trend of positive stock market performance when the Fed cuts rates. While year one returns averaged 9.6%, year two has historically performed even better, with an average gain of 16.4%.



"We would happily accept these returns over the next twelve months," Buchbinder said, adding that current "lofty valuations" might moderate future gains.



Despite a positive outlook, Buchbinder warns that the macroeconomic situation is "far from assured." Several potential risks could derail the S&amp;P 500's progress, including:



<ul class="wp-block-list">
<li>High government deficit spending is pushing long-term rates up.</li>



<li>A weakening job market that could trigger recession fears.</li>



<li>Ongoing legal battles over tariffs.</li>



<li>Geopolitical instability.</li>
</ul>



Ultimately, the consensus view is that "Markets like rate cuts that are a luxury, not an emergency." This suggests the current environment is favorable for stocks, so long as the risk of a recession remains low.



Meanwhile, the Federal Reserve&#8217;s latest economic projections revealed a surprisingly <a href="https://www.benzinga.com/markets/macro-economic-events/25/09/47732133/fed-dot-plot-reveals-shallow-easing-path-for-2026-experts-say-dont-expect-many-more">shallow path for interest rate cuts</a> in 2026, signaling that the policy will remain restrictive as the central bank contends with a resilient economy and sticky inflation. &#8211;



The committee&#8217;s median forecast for the federal funds rate shows a decline to only 3.4% by the end of 2026, a mere 0.2 percentage point drop from the 3.6% projected for year-end 2025.



While 20 bps is less than a standard cut of 25 bps, this indicates that the median FOMC participant does not foresee a clear case for even one full rate reduction over the course of 2026.



The conflicting signals and internal divisions left many observers struggling to find a coherent message.



Anna Wong, Chief U.S. Economist for Bloomberg, stated, "I have not seen a meeting with so much contradictions". The wide dispersion of views suggests the Fed's path for 2026 remains highly uncertain and will be subject to contentious debate.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">So the median Fomc participant raised the growth forecast for 25'— implying gdp at potential growth pace, or perhaps even higher given slowdown in immigration, in H2. It also lowered the UR projection for 26' and 27'. And it is talking about downside risks to employment having…&mdash; Anna Wong (@AnnaEconomist) <a href="https://twitter.com/AnnaEconomist/status/1968388793284837449?ref_src=twsrc%5Etfw">September 17, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures">How to Trade Futures</a> 



<h2 class="wp-block-heading">Upcoming Economic Data</h2>



Here's what investors will be keeping an eye on Thursday;



<ul class="wp-block-list">
<li>The initial jobless claims fell to 231,000 in the week ending Sept. 11, below the 241,000 consensus forecast.</li>



<li>The Philadelphia Fed manufacturing survey showed that the diffusion index for current general activity rose 24 points to 23.2 in September, its highest reading since January</li>



<li>August&#8217;s U.S. leading economic indicators data will be out by 10:00 a.m. ET.</li>
</ul>



<h2 class="wp-block-heading">Stocks In Focus</h2>



<ul class="wp-block-list">
<li>Darden Restaurants Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>) rose 1.03% in premarket on Thursday, ahead of its earnings report scheduled to be released before the opening bell. Analysts estimate earnings of $2.00 per share on the revenue of $3.04 billion.</li>



<li>FactSet Research Systems Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDS#NYSE">FDS</a>) was 1.15% higher as analysts expect it to report earnings of $4.13 per share on the revenue of $593.45 million before the opening bell.</li>



<li>FedEx Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDX#NYSE">FDX</a>) was up 0.12% ahead of its earnings report scheduled to be released after the closing bell. Analysts estimate earnings of $3.62 per share on revenue of $21.67 billion.</li>



<li>Bullish (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLSH#NYSE">BLSH</a>) jumped 7.91% after posting a profit for the second quarter after Wednesday's closing bell. Its quarterly earnings were 93 cents per share, versus a year-ago loss of $1.03 per share. It reported $58.63 million in revenue, which was up from $49.57 million during the same period last year.</li>



<li>89bio Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ETNB#NASDAQ">ETNB</a>) surged 85.15% as it agreed to be acquired by Roche for $14.50 per share in cash at closing, representing around a 79% premium to 89bio's closing stock price on Sept. 17.</li>



<li>Cracker Barrel Old Country Store Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CBRL#NASDAQ">CBRL</a>) dropped 9.28% after a mixed fourth-quarter report and an anticipation of $25 million hit from Trump&#8217;s tariffs in fiscal year 2026.</li>



<li>Aquabounty Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AQB#NASDAQ">AQB</a>) popped 61.40% after it was confirmed that it met NASDAQ&#8217;s minimum bid price requirement.</li>



<li>Krispy Kreme Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DNUT#NASDAQ">DNUT</a>) advanced 3.49% following Federal Bureau of Investigation Director Kash Patel‘s congressional testimony about his stock purchase.</li>



<li>Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) gained 1.97% as it announced a multi-year partnership with Lloyds Banking Group, a British financial institution.</li>
</ul>



<h2 class="wp-block-heading">Commodities, Gold, And Global Equity Markets</h2>



Crude oil futures were trading lower in the early New York session by 0.05% to hover around $64.02 per barrel.



Gold Spot US Dollar fell 0.09% to hover around $3,656.70 per ounce. Its last record high stood at $3,707.7 per ounce. The U.S. Dollar Index spot was 0.15% higher at the 97.0190 level.



Asian markets closed mixed on Thursday, as China&#8217;s CSI 300, Hong Kong's Hang Seng, and Australia's ASX 200 indices fell. On the other hand, India&#8217;s S&amp;P BSE Sensex, Japan's Nikkei 225, and South Korea's Kospi indices rose. European markets were higher in early trade.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/macro-economic-events/25/09/47732133/fed-dot-plot-reveals-shallow-easing-path-for-2026-experts-say-dont-expect-many-more">Fed Dot Plot Reveals Shallow Easing Path For 2026; Experts Say Don&#8217;t Expect &#8216;Many More Reductions&#8217; As Split Of Dots Is &#8216;Something To Behold&#8217;</a></li>
</ul>



Photo courtesy: Shutterstock



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="Nvidia Invests $5B In Intel &#x7C; $NVDA $INTC" width="500" height="281" src="https://www.youtube.com/embed/FqZexvyXuwY?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div></figure>

Earnings

Macro Notification

Commodities

Treasuries

Pre-Market Outlook

AVGO

BLSH

CBRL

DNUT

MANU

Stock Market Today: S&P 500, Nasdaq Futures Rise Following Fed Rate Cuts— Nvidia And Intel In Focus After $5 Billion Investment Deal (UPDATED)

President Donald Trump applauds ABC News&#8217; decision to cancel &#8216;The Jimmy Kimmel Show&#8217;, criticizing the show&#8217;s ratings and host&#8217;s talent in a recent post.



<h2 class="wp-block-heading">Trump Reacts To Kimmel Show Cancellation, Says Fallon, Meyer Next</h2>



Trump took to Truth Social and congratulated ABC for having the &#8220;courage&#8221; to cancel the &#8220;ratings challenged&#8221;&nbsp;Jimmy Kimmel Live!&nbsp;show. He also called on NBC to cancel The Tonight Show With Jimmy Fallon and Late Night with&nbsp;Seth Meyers.



That leaves&nbsp;Jimmy and Seth, two total&nbsp;losers, on Fake News NBC.&nbsp;Their ratings are also horrible.&nbsp;Do it NBC!!!&#8221;



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="594" height="276" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/09/18033635/image-298.png" alt="" class="wp-image-1076078" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/09/18033635/image-298.png 594w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/09/18033635/image-298-300x139.png 300w" sizes="(max-width: 594px) 100vw, 594px" /></figure>



<h2 class="wp-block-heading">Kimmel Taken Off Air After Kirk Remarks, Scaramucci Reacts</h2>



Trump&#8217;s post comes after a series of significant events in the late-night TV landscape. ABC has indefinitely taken late-night host Jimmy Kimmel off the air following his remarks regarding the shooting of right-wing influencer Charlie Kirk. 



Earlier this week, Kimmel stated on his show that the &#8220;MAGA gang&#8221; was attempting to gain political advantage from Kirk&#8217;s death.



&#8220;Jimmy Kimmel Live will be pre-empted indefinitely,&#8221; a spokesperson for the network owned by Disney (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) said in a statement.



Meanwhile, Anthony Scaramucci who was also former White House Communications Director, reacted to the news on X stating, &#8220;Jimmy Kimmel and me: both fired by Trump!&#8221;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Jimmy Kimmel and me: both fired by Trump!&mdash; Anthony Scaramucci (@Scaramucci) <a href="https://twitter.com/Scaramucci/status/1968562991600959558?ref_src=twsrc%5Etfw">September 18, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<h2 class="wp-block-heading">Colbert's show Was Ended After Trump Lawsuit Clash</h2>



In July, CBS announced the end of&nbsp;Stephen Colbert&#8216;s&nbsp;The Late Show, following the host&#8217;s criticism of CBS&#8217;s parent company, Paramount, now Paramount Skydance (NASDAQ:&nbsp;PSKY) for settling a $16 million lawsuit with Trump. The lawsuit was related to Trump&#8217;s allegations that CBS News had manipulated an interview with then-presidential candidate&nbsp;Kamala Harris.



Trump&#8217;s tweet also follows a recent announcement of a $15 billion defamation and libel lawsuit against The New York Times (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NYT#NYSE">NYT</a>). In the lawsuit, Trump accused the newspaper of being a &#8220;mouthpiece&#8221; for the Democratic Party and making illegal campaign contributions. He also criticized the paper for endorsing former Vice President&nbsp;Kamala Harris&nbsp;on the front page, a move he described as &#8220;UNHEARD OF!&#8221;



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</ul>



Image via Shutterstock



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Media

Trump Celebrates ABC's Cancellation Of Jimmy Kimmel's Show—Anthony Scaramucci Says 'Both Fired By...'

The CNN Money Fear and Greed index showed a slight decline in the overall market sentiment, while the index remained in the &#8220;Greed&#8221; zone on Wednesday.



U.S. stocks settled mixed on Wednesday, with the Dow Jones index gaining more than 250 points during the session as the Federal Reserve implemented its first interest rate cut of the year.



The Federal Reserve delivered a 25-basis-point rate cut and Fed Chair Jerome Powell signaled more easing could be coming — a shift partly driven by a cooling labor market and growing downside risks to employment.



General Mills Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GIS#NYSE">GIS</a>) reported fiscal 2026 first-quarter results that came in slightly ahead of Wall Street expectations. Manchester United plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MANU#NYSE">MANU</a>) shares fell more than 6% on Wednesday after the company reported mixed fourth-quarter financial results.



On the economic front, U.S. housing starts dipped 8.5% month-over-month to an annual rate of 1.307 million units in August, following a revised 1.429 million in the previous month and down from market estimates of 1.37 million. Building permits declined by 3.7% to an annualized rate of 1.312 million in August.



Most sectors on the S&amp;P 500 closed on a positive note, with consumer staples, financial and materials stocks recording the biggest gains on Monday. However, information technology and industrials stocks bucked the overall market trend, closing the session lower.



The Dow Jones closed higher by around 260 points to 46,018.32 on Wednesday. The S&amp;P 500 fell 0.10% to 6,600.35, while the Nasdaq Composite fell 0.33% to 22,261.33 during Monday's session.



Investors are awaiting earnings results from Darden Restaurants Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>), Factset Research Systems Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDS#NYSE">FDS</a>) and FedEx Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDX#NYSE">FDX</a>) today.



What is CNN Business Fear &amp; Greed Index?



At a current reading of 57.3, the index moved to the &#8220;Greed&#8221; zone on Wednesday, versus a prior reading of 57.5.



The Fear &amp; Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.



Read Next: 



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<li><a href="https://www.benzinga.com/trading-ideas/dividends/25/09/47711742/how-to-earn-500-a-month-from-fedex-stock-ahead-of-q1-earnings-2">How To Earn $500 A Month From FedEx Stock Ahead Of Q1 Earnings</a></li>
</ul>



Photo via Shutterstock

Dow Jumps Over 250 Points As Fed Cuts Rates: Investor Sentiment Edges Lower, Fear Index Remains In 'Greed' Zone

Tech stocks rallied Wednesday after the Federal Reserve delivered a 25-basis-point rate cut and Fed Chair Jerome Powell signaled more easing could be coming — a shift partly driven by a cooling labor market and growing <a href="https://www.benzinga.com/markets/economic-data/25/09/47723450/federal-reserve-interest-rate-decision-september-2025-dot-plot-economic-projections">downside risks to employment.</a>



The Nasdaq 100 – as closely tracked by the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) – recouped all morning losses and turned positive heading into the close, reclaiming the 24,200-point area. Tech stocks had slumped earlier in the session, with AI-linked names like Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) and Palantir Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NYSE">PLTR</a>) falling as much as 3% after China announced a ban preventing domestic firms from purchasing Nvidia's AI chips.



The Fed&#8217;s cut lowers the federal funds target to 4.00%-4.25%, marking the Fed&#8217;s fourth rate reduction in the current easing cycle, and its first move after a nine-month pause. 



It also comes after months of public pressure from President Donald Trump, who has repeatedly called for lower rates to support consumption and investment.



The quarter of a percentage point rate cut was not unanimous. Fed Governor Stephen Miran, a recent Trump appointee replacing Adriana Kugler, dissented — arguing in favor of a 50-basis-point cut instead.



<h2 class="wp-block-heading">Tech Stocks Making Large Gains During Powell&#8217;s Remarks</h2>



According to <a href="https://www.benzinga.com/pro/?utm_source=BZprocontent&amp;t=be2bearmibe3na1">Benzinga Pro</a> data, the top-performing stocks with market capitalizations above $10 billion during Powell's speech from 2:30 to 3:30 p.m. ET included: 



<ul class="wp-block-list">
<li>Nebius Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NBIS#NASDAQ">NBIS</a>) up 4.28%, </li>



<li>SanDisk (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SNDK#NASDAQ">SNDK</a>) up 3.51%,</li>



<li>IonQ Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IONQ#NYSE">IONQ</a>) up 3.29%, </li>



<li>Oklo Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OKLO#NYSE">OKLO</a>) up 2.93%, </li>



<li>Reddit Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RDDT#NYSE">RDDT</a>) up 2.92%,</li>



<li>Joby Aviation Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JOBY#NYSE">JOBY</a>) up 2.74%, </li>



<li>Nio Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) up 2.64%, </li>



<li>Palantir Technologies Inc. up 2.60%, </li>



<li>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) up 2.44%, </li>



<li>Roblox Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RBLX#NYSE">RBLX</a>) up 2.42%.</li>
</ul>



<h3 class="wp-block-heading">What Jerome Powell Said</h3>



Powell said the Federal Reserve's decision to cut rates by 25 basis points was driven by a shift in the balance of risks between inflation and employment, with the labor market now showing clearer signs of softening.



Powell called the move a "risk management cut," clarifying that while economic growth projections have ticked up modestly, the Fed is now acting preemptively to support the labor market before a downturn takes hold.



On inflation, Powell acknowledged that headline and core PCE inflation remain elevated — at 3.0% and 3.1% for 2025, respectively — but said the recent rise in goods prices, partly linked to tariffs, is not expected to lead to a sustained inflation breakout. 



"A reasonable base case is that the effects on inflation will be relatively short-lived," he said.



Still, Powell added, "Our job is literally to make sure that that is what happens," underscoring the Fed's continued commitment to its 2% inflation target.



Asked whether the Fed's independence is being compromised given President Trump's growing influence and the recent appointment of a new FOMC member with executive branch ties, Powell said: "The committee remains united in pursuing our dual mandate goals. We&#8217;re strongly committed to maintaining our independence."



The Summary of Economic Projections now implies a federal funds rate of 3.6% by the end of 2025, lower than the 3.9% median estimate from June, suggesting more cuts could be on the table.



However, Powell ruled out a larger 50-basis-point move for now. "There wasn't widespread support at all for a 50-point cut," he said, adding that large moves are typically reserved for moments when the policy stance is "clearly in the wrong place," which is not the case today.



The Fed, Powell said, has moved one step closer to neutral — but stands ready to act again if the labor market deteriorates further or inflation surprises on the upside. "There is no risk-free path here," he said.



Asked whether the current rate cuts risk fueling a financial bubble, Powell responded that despite record equity levels, there is no evidence of systemic imbalances. 



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/news/25/09/47717035/sp500-historical-performance-federal-reserve-interest-rate-cuts">History Warns: S&amp;P 500 Often Slips After Fed Rate Cuts</a></li>
</ul>



Image created using artificial intelligence via Midjourney.

Broad U.S. Equity ETFs

IONQ

JOBY

NBIS

OKLO

PLTR

RBLX

RDDT

SNDK

Tech Stocks Surge As Fed Cuts Rates, Powell Signals More Easing Ahead

Technology giant Meta Platforms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) will lay out new products and plans for its ambitions in artificial intelligence, smart glasses and the metaverse during the company's <a href="https://www.benzinga.com/markets/tech/25/08/47297176/meta-to-launch-first-consumer-smart-glasses-with-display-gesture-control-wristband-at-connect-conference-report">Meta Connect 2025 event.</a>



Here's a look at how to watch the event and what to expect.



<h2 class="wp-block-heading">How to Watch Meta Connect 2025</h2>



Several <a href="https://www.benzinga.com/news/25/09/47684301/ross-gerber-calls-metas-upcoming-smart-glasses-a-game-changer-after-leak-reveals-ray-ban-display-and">reports on products</a> that Meta will launch at the 2025 event have been coming ahead of the highly anticipated event.



Meta Connect 2025 takes place on Wednesday and Thursday. Meta CEO Mark Zuckerberg will give a keynote at 8 p.m. ET on Wednesday. The keynote can be watched on Meta's Facebook <a href="https://www.meta.com/connect/">page </a>and also within Meta Horizon on VR headsets.



"Join Mark Zuckerberg as he shares the latest on AI glasses and lays out Meta's vision for artificial intelligence and the metaverse," Meta's website says.



On Thursday, Meta will host its Developer Keynote at 1 p.m. ET.



Read Also: <a href="https://www.benzinga.com/trading-ideas/short-ideas/25/08/47220903/wall-street-vs-zuckerberg-meta-shorts-dwarf-microsoft-and-palantir-combined">Wall Street Vs. Zuckerberg: Meta Shorts Dwarf Microsoft And Palantir Combined</a>



<h2 class="wp-block-heading">What to Expect at Meta Connect 2025</h2>



According to Meta, the event will lay out the company's future in AI and the metaverse.



Viewers of the event can expect updates on smart glasses, according to reports. Meta is expected to show off new consumer smart glasses with a display.



The glasses could be part of <a href="https://www.benzinga.com/markets/tech/25/07/46311405/mark-zuckerberg-led-meta-acquires-nearly-3-of-ray-ban-oakley-parent-essilorluxottica-in-3-5-billion-deal-report">Meta's partnership with</a> EssilorLuxottica (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ESLOY#OTC">ESLOY</a>), the owner of Ray-Ban and Oakley.



Meta is also expected to show off a wristband with gesture controls, which could put the company into new wearable categories alongside its plans for smart glasses.



According to Meta's website, the company is "creating the future of human connection" and will highlight this at the event.



Meta has put a larger emphasis on artificial intelligence in recent years and launched Meta Superintelligence Labs in June of this year. Investors could get more details on Meta Superintelligence Labs and its early progress in creating new growth verticals for the tech giant.



Last year's Meta Connect<a href="https://www.benzinga.com/news/24/09/41032461/meta-unveils-new-ai-features-quest-3s-llama-3-2-holographic-orion-glasses-at-connect-2024-we-are-get"> saw the company </a>highlight its more affordable Meta Quest 3S mixed reality headset, show off prototypes of the Orion smart glasses and highlight expansion into AI opportunities.



"We are getting closer to achieving the dream of Reality Labs," Zuckerberg said at last year's event.



The Reality Labs division of Meta has experienced sharp losses in recent years and also undergone job cuts. More highlights on how the division will grow revenue and turn profitable could be key highlights from this year's event.



<h2 class="wp-block-heading">Meta Stock Reaction</h2>



Meta stock trades at $775.67 at the time of writing, down 0.4% Wednesday. Shares have traded between $479.80 and $796.25 over the last 52 weeks, with shares up 29.4% year-to-date in 2025.



On the day of last year's Meta Connect, the stock traded between $563.72 and $576.88. The next day, shares opened at $575.73 before closing the day down at $567.84.



Meta&#8217;s stock price fell after the Meta Connect 2024 event, but has since traded higher, with shares now up 34.5% since last year's event.



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</ul>



Photo: Shutterstock

Previews

ESLOY

Meta Connect Preview: How To Watch Mark Zuckerberg Speech, What's Next For AI, Smart Glasses & Metaverse

Electric vehicle giant Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) and CEO Elon Musk had grand ambitions with the launch of the Cybertruck. Expectations <a href="https://www.benzinga.com/news/topics/25/07/46252465/cybertruck-dreams-shatter-as-musks-250k-goal-unravels">have underperformed,</a> but there could be good news with the vehicle expanding to more international markets.



What Happened: Tesla<a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/11/36009652/cybertruck-launch-historical-moment-for-tesla-will-prove-to-doubters-that-elon-musk"> officially launched the Cybertruck</a> in November 2023, and for the first two years, the vehicle was only sold in North America.



The electric vehicle company is now branching out to other parts of the world with the recent launch of the Cybertruck in South Korea and the upcoming launch in the Middle East.



Cybertruck deliveries are set to begin in the United Arab Emirates for reservation holders, with a wider public launch to follow soon.



Tesla <a href="https://x.com/teslaeurope/status/1967861513089384615">said </a>the public launch will be "in the coming weeks in the Middle East." The company previously said it would sell the Cybertruck in Saudi Arabia, Qatar and the United Arab Emirates in April, as <a href="https://www.teslarati.com/tesla-launches-cybertruck-orders-in-a-new-market-with-a-catch/">reported </a>by Teslarati.



Consumers in other markets have been hoping for the Cybertruck to be released in additional places, but these are the only countries announced by Tesla to date.



The Cybertrucks sold in the Middle East will be exported from Tesla's Gigafactory Texas, as the company's Berlin and Shanghai Gigafactories, which traditionally export vehicles to the region, do not have dedicated Cybertruck production lines.



Read Also: <a href="https://www.benzinga.com/markets/large-cap/25/07/46475391/tesla-cybertruck-bet-not-paying-off-ford-gm-outsell-ev-giant">Tesla Cybertruck Bet Not Paying Off? Ford, GM Outsell EV Giant</a>



Why It's Important: Ahead of the North American launch of the Cybertruck, Tesla highlighted that it had over a million reservations for the vehicle.



Musk highlighted the company's goal of an annual production capacity of 250,000 units per year and a goal of selling hundreds of thousands of units of the electric pickup truck.



The launch of the Cybertruck in North America may have been hurt by a higher price than originally estimated and by a lower range than many wanted or expected. Demand for the vehicle in recent months may also be hurt by the brand damage of Tesla and Musk due to his push into politics.



It will be interesting to see how demand for the Cybertruck develops in South Korea and the Middle East, regions that may not share the negative perceptions of Musk or the waning support seen in North America and Europe.



Musk hinted that a smaller Cybertruck could be launched in the future for international markets that have narrower roads. The recent international launches could be a test of how well the vehicle performs there and whether Tesla needs to make adjustments to the vehicle.



In the United States, Tesla sold 38,965 Cybertrucks in 2024, according to reports. This ranked fifth among all electric vehicles in the country for the year, but was well under estimates. In the first 14 months of availability, around 46,000 Cybertrucks were sold in the United States based on recall data.



Tesla has now fallen behind Ford Motor Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) and General Motors Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) in the electric pickup truck market for the United States. The Cybertruck sold 4,306 units in the U.S. in the second quarter, lower than the 5,842 Ford F-150 Lightning units and 4,508 GMC Hummer EV units in the same time period.



The Cybertruck is pacing for annual sales of 10,000 to 25,000 units, or around a tenth of the planned 250,000 yearly production capacity.



Tesla shareholders will likely be hoping the Cybertruck gets another sign of life with new international markets, as demand in the United States dries up.



Read Next: 



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<li><a href="https://www.benzinga.com/markets/tech/25/08/47286560/musk-teases-flying-cybertruck-is-this-a-pipe-dream-or-a-future-evtol">Musk Teases Flying Cybertruck: Is This A Pipe Dream Or A Future eVTOL?</a></li>
</ul>



Photo: Shutterstock

Global

Tesla Cybertruck Underperformed In The US: Will The International Launch Be Different?

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