S&P 500 futures are up by 0.6%, suggesting a positive start to the market. After some initial confusion following the Federal Open Market Committee’s decision, the mood improved during European trading. Tech stocks are leading the way, with Nasdaq futures rising by 1%. Intel shares have jumped by 28% after Nvidia announced a $5 billion investment in data center and PC products. Nvidia’s shares are also up by 3%.

Market Path Forward

After some uncertainty from the Federal Reserve’s meeting yesterday, the market is now showing a clearer direction with a strong start led by tech stocks. The VIX, a measure of market volatility, spiked above 22 after the announcement but has since fallen back below 18 this morning. This drop in implied volatility makes buying options cheaper and suggests traders expect a steady upward movement rather than more fluctuations. This positive outlook is mainly due to the belief that the Fed will maintain its current policies. A recent CPI report from August 2025 showed inflation cooling to 3.1%, helping the market regain confidence after early-year inflation worries. This situation reminds us of late 2023 when investors started anticipating a friendlier central bank policy. Today, the Nasdaq is taking the lead, boosted by Nvidia’s $5 billion investment into Intel, which is creating excitement across the semiconductor industry. For options traders, it’s a good time to buy near-term call options on the QQQ ETF or a selection of semiconductor stocks to capitalize on this momentum. The strong pre-market gains in Intel and Nvidia highlight that institutional money is currently favoring big-cap tech.

Semiconductor Sector Focus

The surge in the semiconductor sector is becoming the main focus for the coming weeks. We’re seeing a lot of activity in call options on the SOXX semiconductor ETF, with traders looking at strikes 5-10% above the current market price with expirations in October 2025. This shows a strong belief that yesterday’s volatility was just a brief pause before the market climbs higher, fueled by advancements in artificial intelligence and spending on data centers. Create your live VT Markets account and start trading now.

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