U.S. markets witnessed significant movement as Generac Holdings soared more than 40% following the announcement of a massive infrastructure deal with Amazon, Intel gained on partnership speculation involving SK Hynix, Lucid Group announced a major European robotaxi expansion alongside Bolt, and Nvidia recovered alongside the broader technology sector as Treasury yields declined and oil prices softened. The session also featured a landmark monetary policy decision, as the Federal Reserve raised interest rates for the first time in three years, lifting its benchmark target range to 3.75% to 4.00%.

Generac Surges More Than 40% on $2.4 Billion Amazon Data Center Deal

Shares of Generac Holdings experienced a dramatic surge exceeding 40% during after-hours trading following the unveiling of a strategic, long-term supply partnership with Amazon.

Under the agreement, the Wisconsin-based power generation manufacturer will deliver backup power systems to support Amazon's rapidly expanding network of data centers. The initial contract value stands at approximately $2.4 billion, with potential expansion to $8 billion based on the complete terms of the agreement.

As part of the transaction structure, Amazon obtained warrants allowing the purchase of up to 1.69 million Generac shares.

The partnership underscores the critical role of power infrastructure in supporting the artificial intelligence expansion. With data center facilities multiplying in both scale and quantity, requirements for dependable backup power solutions are accelerating rapidly.

The arrangement also demonstrates that AI-driven growth is generating substantial opportunities for enterprises well beyond conventional semiconductor manufacturers. Whether the initial $2.4 billion commitment expands toward the $8 billion potential built into the complete terms is an early storyline to watch as Amazon's data center footprint grows.

Intel Advances on Report of SK Hynix Talks Over U.S. Chip Production

Intel shares experienced gains following reports indicating that South Korea's SK Hynix is exploring preliminary discussions regarding chip production at Intel's domestic manufacturing sites.

According to sources, two potential collaboration frameworks are under consideration. Under the first scenario, SK Hynix would lease portions of Intel's Ohio semiconductor fabrication facility. Under the second, the two companies could establish a joint venture potentially involving major cloud infrastructure providers.

No formal agreement has been finalized. Intel has committed significant capital toward expanding American-based chip production capabilities, and securing a partner like SK Hynix for its Ohio operations could help optimize utilization of the facility.

SK Hynix holds a prominent position in high-bandwidth memory production, a specialized chip category that is experiencing robust demand for AI processor applications. Such a partnership could create mutual benefits during a period of sustained AI hardware requirements. Until the discussions produce a signed arrangement, the open questions are which of the two frameworks advances and on what timeline.

Lucid Rises on Plan to Deploy 25,000 Autonomous EVs Across Europe With Bolt

Lucid Group shares increased approximately 5.5% in pre-market trading following disclosure of an autonomous driving collaboration with European mobility platform Bolt.

The partnership outlines plans to introduce no fewer than 25,000 self-driving Lucid electric vehicles throughout European markets. Bolt has established an extended objective of assembling an autonomous fleet totaling 100,000 vehicles by 2035.

The autonomous vehicles will be manufactured using Lucid's forthcoming Midsize platform and will incorporate Nvidia's Hyperion autonomous driving technology. Because the vehicles are slated to be built on the Midsize platform—still forthcoming—the platform's progress is a practical milestone for the deployment timeline.

The agreement provides Lucid with an alternative commercial expansion avenue beyond traditional consumer retail channels. The deal also complements Lucid's current robotaxi collaborations with Uber and Nuro in North American markets.

Nvidia Reclaims Ground as Technology Stocks Rally

Nvidia stock advanced more than 2% as market participants returned to technology equities following several sessions of heightened volatility.

Amazon similarly posted gains exceeding 2% during the trading session, contributing to the Nasdaq's outperformance relative to broader market indices.

Declining crude oil prices, combined with retreating long-dated Treasury yields, provided relief for growth-oriented stocks after interest rate and inflation concerns pressured the technology sector in previous sessions.

Demand for Nvidia's chips continues at elevated levels. AI cloud infrastructure provider Nebius has implemented additional price increases for access to specific Nvidia processors, indicating that supply constraints persist.

Federal Reserve Enacts First Rate Increase Since 2023

The Federal Reserve's policymaking committee voted unanimously to increase its benchmark interest rate by 25 basis points, establishing an updated target range of 3.75% to 4.00%.

The move marks the initial rate increase in more than three years and arrives as monetary authorities seek to keep inflation under control. Because the federal funds rate serves as a reference point for borrowing costs across the economy, the resumption of increases carries implications that extend from corporate financing to consumer credit.

Sixteen of the Fed's eighteen policymakers anticipate at least one additional rate increase prior to year-end, a projection indicating that the current monetary tightening campaign may extend further.

Market participants will monitor subsequent communications from the Federal Reserve for guidance on the timing and magnitude of future rate adjustments.

This article is adapted from reporting by Blockonomi.