Intel Corporation (NASDAQ: INTC) shares rose 5.0% on Wednesday, contributing to a broader rally in the technology sector as the market awaited a Federal Reserve interest rate decision.
The rally was part of a wider rebound in the Nasdaq 100, which gained 0.9% to 29,198. The index had been bolstered by hardware and semiconductor names extending gains following Tuesday’s recovery from AI-safety jitters.
Intel’s performance came alongside other AI-connectivity stocks, including Astera Labs (up 6.0%), Dell Technologies (up 5.2%), and Lumentum Holdings (up 8.2%). The group’s gains were attributed to short covering following a challenging month for the sector.
The market’s positive tone was driven by a sharp reversal in crude oil prices. U.S. Energy Secretary Chris Wright stated that an outage on Saudi Arabia’s East-West crude pipeline would be a “brief and temporary interruption” measured in days. West Texas Intermediate crude fell 3.6% to $102.02 a barrel, while Brent crude dropped 3.3% to $105.17.
The decline in energy prices helped lift the S&P 500, which added 0.4% to 7,615.70. However, the energy sector remained under pressure, with the Energy Select Sector SPDR Fund falling 2.1%.
Investors are focused on the Federal Reserve, which is expected to raise interest rates for the first time since 2023. Fed funds futures price a 93% chance of a 25 basis point hike to a target range of 3.75%-4.00% this afternoon.
Wednesday’s economic data did little to soften the case for a rate hike. August retail sales jumped 1.2% month-over-month, the control group used in GDP calculations surged 1.4%, and import prices climbed 0.7%.
