5 Things to Know Before the Stock Market Opens Wednesday

Here are five key things investors need to know to start the trading day:

Nvidia (NVDA) seized market attention yesterday, both tangibly and symbolically. CEO Jensen Huang, during the company’s technology conference, orchestrated a series of strategic alliances and a significant announcement regarding domestic production.

Here’s a breakdown:

• Nokia (NOK) disclosed that Nvidia is acquiring a $1 billion stake in the company, sending U.S.-listed shares of the Finnish networking giant soaring over 22%, marking their most substantial single-day gain since 2021. This move signals Nvidia’s intent to deeply integrate its AI capabilities within telecommunications infrastructure. Analysts see this as a strategic play to accelerate the deployment of AI-powered 5G and future 6G networks.
• Eli Lilly (LLY) and Nvidia are partnering to construct a cutting-edge supercomputer and dedicated AI factory tailored for the pharmaceutical industry. The collaboration aims to fundamentally accelerate drug discovery and development timelines. This reflects the growing convergence of AI and biopharma, where machine learning models can analyze complex biological datasets to identify promising drug candidates and predict clinical trial outcomes. The partnership is expected to significantly reduce the time and cost associated with bringing new therapies to market.
• Lucid (LCID) revealed plans to leverage Nvidia’s technology in its ambitious pursuit of achieving “mind-off” autonomous driving within the next few years. This signifies a critical advancement in self-driving technology, potentially positioning Lucid at the forefront of the autonomous vehicle revolution. The move underscores the increasing reliance of EV manufacturers on powerful AI platforms for processing sensor data and enabling advanced driver-assistance systems (ADAS).
• Huang announced that Nvidia’s most advanced AI chips, the Blackwell GPUs, are now being manufactured in Arizona, a move away from their previous production location in Taiwan. This domestic manufacturing shift is strategically important, reducing geopolitical risk and enhancing supply chain resilience. Furthermore, it aligns with the U.S. government’s efforts to bolster domestic chip production and secure its leadership in AI technology.
• Nvidia’s stock price surged 5% yesterday, propelling U.S. equities to new all-time highs and positioning the company to potentially reach a historic $5 trillion valuation. The rally highlights the market’s strong confidence in Nvidia’s growth trajectory and its dominance in the AI hardware and software space. Analysts project continued strong demand for Nvidia’s products as AI adoption expands across various industries.

The Federal Reserve is poised to announce its second-to-last interest rate decision of 2025 at 2 p.m. ET today. Market expectations heavily favor a rate cut: Fed funds futures indicate a nearly unanimous 99.9% probability of a 25 basis point reduction, according to the CME’s FedWatch tool.

Despite the widespread anticipation, investors will be closely monitoring for any dissenting voices within the Fed and scrutinizing Chairman Jerome Powell’s press conference for nuanced insights into the future direction of monetary policy. Concerns regarding the impact of the government shutdown on economic data analysis, as highlighted in the recent CNBC Fed Survey, add further complexity to the Fed’s decision-making process. The market’s reaction will hinge on the Fed’s forward guidance and its assessment of the balance between inflation and economic growth.

OpenAI has officially completed its transition into a nonprofit structure. The newly established OpenAI Foundation now holds a controlling interest valued at approximately $130 billion in OpenAI Group PBC, the company’s for-profit entity structured as a Public Benefit Corporation (PBC).

The restructuring also reaffirms Microsoft’s (MSFT) significant investment in the for-profit arm, amounting to $135 billion, representing roughly 27% of the company on an as-converted diluted basis. This further solidifies the strategic alliance between the two companies. The intricate structure is designed to balance OpenAI’s mission-driven goals with the need for capital and commercialization to fuel its ambitious AI research and development efforts. The governance implications of this unique model are likely to be closely watched by the tech industry.

Microsoft, along with fellow Big Tech giants Alphabet (GOOGL) and Meta (META), are scheduled to release their earnings reports after the market closes today, adding further weight to an already crucial day for tech investors.

The federal government shutdown has now entered its second month, intensifying pressure on Washington as the impasse continues.

Over two dozen states have initiated legal action against the Trump administration, seeking to maintain crucial benefits under the Supplemental Nutrition Assistance Program (SNAP), as the Agriculture Department plans to discontinue these benefits. This legal challenge highlights the growing economic and social consequences of the prolonged shutdown.

Meanwhile, a federal judge has extended a temporary injunction against the termination of federal employees during the shutdown. Reports also indicate that some air traffic controllers are resorting to taking on additional jobs to supplement their income while working without pay, raising concerns about potential impacts on safety and efficiency.

Boeing’s (BA) shares are experiencing a slight dip in premarket trading following the release of its third-quarter earnings report. Despite achieving positive cash flow for the first time since 2023, the company recorded a significant $4.9 billion charge related to delays in the development of its 777X aircraft.

While Boeing is on track to achieve its highest delivery numbers since 2018, the company continues to grapple with manufacturing challenges, supply chain disruptions, and the lingering repercussions of past incidents. CEO Kelly Ortberg acknowledged the ongoing development challenges but expressed optimism regarding the company’s overall progress.