AeroVironment, Inc. designs, develops, produces, delivers, and supports a portfolio of robotic systems and related services for government agencies and businesses in the United States and internationally. It operates through Small Unmanned Aircraft Systems (SUAS), Tactical Missile System (TMS), Medium Unmanned Aircraft Systems (MUAS), and High Altitude Pseudo-Satellite Systems (HAPS) segments. The company supplies UAS, TMS, unmanned ground vehicle, and related services primarily to organizations within the U.S. Department of Defense, other federal agencies, and to international allied governments. It also designs, engineers, tools, and manufactures unmanned aerial and aircraft systems, including airborne platforms, payloads and payload integration, ground control systems, and ground support equipment and other items and services related to unmanned aircraft systems. In addition, the company offers small UAS products, including training, spare parts, product repair, product replacement, and the customer contracted operation. Further, it develops high-altitude pseudo-satellite UAS systems. AeroVironment, Inc. was incorporated in 1971 and is headquartered in Arlington, Virginia.

AeroVironment, Inc.

Lockheed Martin Corporation LMT is enhancing its PAC-3 Missile Segment Enhancement (“MSE”) system by using artificial intelligence and machine learning. The company aims to make its air and missile defense systems faster, smarter and more effective against modern threats.
With AI-driven control and management, the PAC-3 MSE can detect, track and respond to targets more quickly. It can also adjust in real time to changing threat patterns, improving both accuracy and decision-making on the battlefield.
Lockheed Martin is also expanding its use of AI across other defense systems. This will help improve how quickly threats are identified and handled while making better use of available resources. These efforts reflect the company’s goal of giving warfighters a stronger and more reliable defense advantage.
Importance of AI
Artificial intelligence is growing rapidly as technologies like machine learning and computer vision change how industries operate. With the rise of digital tools, there is a greater need for AI to manage large amounts of data and provide accurate insights. As technologies such as the Internet of Things and 5G continue to expand, AI is becoming even more important.
In the defense sector, AI is being used to improve surveillance, strengthen security and support faster decision-making in complex situations. It also helps in developing autonomous systems, detecting threats and analyzing battlefield data in real time to improve overall response and efficiency.
Other Stocks to Watch
Other defense companies that are likely to enjoy the perks of the expanding AI market are discussed below.
Northrop Grumman Corporation NOC: In June 2025, the company expanded its use of NVIDIA technology to advance AI-driven space operations. The company will use NVIDIA’s Omniverse and Isaac Lab to develop robotics for spacecraft docking, servicing and on-orbit repairs. It also plans to apply AI across all mission phases to automate commands and improve spacecraft efficiency.
NOC’s long-term (three to five years) earnings growth rate is 3.85%. The Zacks Consensus Estimate for 2025 earnings per share (EPS) indicates a year-over-year decline of 2.7%.
RTX Corporation RTX: In June 2025, RTX signed a 10-year Memorandum of Understanding with Singapore’s Economic Development Board. Through this deal, RTX gains a strategic foothold and institutional backing in a key innovation hub, which can accelerate its AI ambitions in multiple ways.
RTX’s long-term earnings growth rate is 9.07%. The Zacks Consensus Estimate for 2025 EPS indicates a year-over-year increase of 3.7%.
AeroVironment AVAV: In May 2025, AVAV completed the acquisition of BlueHalo. AeroVironment's position in defense and allied industries is strengthened by the acquisition of BlueHalo, which greatly expands its AI, autonomy, and cutting-edge technology capabilities.
AVAV’s long-term earnings growth rate is 16.23%. The Zacks Consensus Estimate for fiscal 2026 EPS indicates a year-over-year increase of 4.6%.
LMT Stock’s Price Performance
In the past three months, shares of the company have risen 7.1% compared with the industry’s 4.8% growth.
Image Source: Zacks Investment Research
LMT’s Zacks Rank
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Lockheed Martin Uses AI to Strengthen PAC-3 Defense System

Below is Validea's guru fundamental report for AEROVIRONMENT, INC. (AVAV). Of the 22 guru strategies we follow, AVAV rates highest using our Value Investor model based on the published strategy of Benjamin Graham. This deep value methodology screens for stocks that have low P/B and P/E ratios, along with low debt and solid long-term earnings growth.
AEROVIRONMENT, INC. (AVAV) is a large-cap growth stock in the Aerospace & Defense industry. The rating using this strategy is 57% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of AEROVIRONMENT, INC.
More Information on Benjamin Graham
About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Known as both the "Father of Value Investing" and the founder of the entire field of security analysis, Graham mentored several of history's greatest investors -- including Warren Buffett -- and inspired a slew of others, including John Templeton, Mario Gabelli, and another of Validea's gurus, John Neff. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family's financial woes following his father's death when Benjamin was a young man. His investment firm posted per annum returns of about 20 percent from 1936 to 1956, far outpacing the 12.2 percent average return for the market during that time.
Additional Research Links
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

AVAV Quantitative Stock Analysis - Benjamin Graham

The Hidden Opportunities in AI

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AeroVironment, Inc. (Symbol: AVAV), where a total volume of 9,436 contracts has been traded thus far today, a contract volume which is representative of approximately 943,600 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 72.3% of AVAV's average daily trading volume over the past month, of 1.3 million shares. Particularly high volume was seen for the $310 strike put option expiring October 03, 2025, with 436 contracts trading so far today, representing approximately 43,600 underlying shares of AVAV. Below is a chart showing AVAV's trailing twelve month trading history, with the $310 strike highlighted in orange:
Hawaiian Electric Industries Inc (Symbol: HE) options are showing a volume of 11,581 contracts thus far today. That number of contracts represents approximately 1.2 million underlying shares, working out to a sizeable 66.7% of HE's average daily trading volume over the past month, of 1.7 million shares. Especially high volume was seen for the $10 strike put option expiring November 21, 2025, with 10,043 contracts trading so far today, representing approximately 1.0 million underlying shares of HE. Below is a chart showing HE's trailing twelve month trading history, with the $10 strike highlighted in orange:
And Duolingo Inc (Symbol: DUOL) options are showing a volume of 13,149 contracts thus far today. That number of contracts represents approximately 1.3 million underlying shares, working out to a sizeable 65.7% of DUOL's average daily trading volume over the past month, of 2.0 million shares. Especially high volume was seen for the $330 strike call option expiring October 10, 2025, with 892 contracts trading so far today, representing approximately 89,200 underlying shares of DUOL. Below is a chart showing DUOL's trailing twelve month trading history, with the $330 strike highlighted in orange:
For the various different available expirations for AVAV options, HE options, or DUOL options, visit StockOptionsChannel.com.
Also see:
TUBE Options Chain
Funds Holding EB
VVNT Options Chain
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Wednesday Option Activity: AVAV, HE, DUOL

Key Points
Raymond James raised its price target on AeroVironment stock this morning.
Last week, Defiance created a new drones ETF and added AV stock to it.
AeroVironment stock costs 200x last year's earnings and will lose money this year.
AeroVironment (NASDAQ: AVAV) stock jumped 4.6% through 10:45 a.m. ET Monday after Raymond James analyst Brian Gesuale raised his price target on the military drones manufacturer to $348 per share.
The Fly reported the price target hike.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Gesuale notes AeroVironment will hold an "investor day" tomorrow, at which it will "unveil the new AV," and may give new guidance. RJ expects the company will promise to double its revenue by 2030.
Everybody loves AeroVironment
As an added bonus for investors, we just learned that the Defiance family of ETFs has created a new Defiance Drone & Modern Warfare ETF (NYSEMKT: JEDI), and that AV will make up about 6.1% of that fund's portfolio. The buying necessary to acquire shares for the ETF is probably a second tailwind lifting AV stock higher today.
Regarding the "doubling" prediction, most analysts who follow AeroVironment already expect AV to more than double its revenue this year. S&P Global Market Intelligence cites analysts forecasting fiscal 2025 sales of $820 million, climbing toward $2 billion in fiscal 2026 (that's this year for AV). Looking out toward 2030, the forecast is for revenue to keep on climbing to $3.5 billion -- almost another double.
Is AeroVironment stock a buy?
Revenues are great, of course, but it's profits that have been AeroVironment's bigger problem of late. Last year, the company earned only $1.55 per share (not a lot for a stock valued at more than $316 -- it actually works out to a P/E ratio of 200!). This year, analysts have AV pegged for a loss.
Granted, 2030 earnings are forecast at $7.70, but even that values AV stock at 41x earnings -- five years in the future. At these prices, I can't call AV stock anything but a sell.
Should you invest $1,000 in AeroVironment right now?
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AeroVironment. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why AeroVironment Stock Popped Today

Benjamin Graham Detailed Fundamental Analysis - AVAV

The S&P 500 Index ($SPX) (SPY) on Thursday closed up +0.48%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.27%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.95%. September E-mini S&P futures (ESU25) rose +0.50%, and September E-mini Nasdaq futures (NQU25) rose +0.92%.
Stock indexes rallied on Thursday, with the S&P 500, Nasdaq 100, and Dow Jones Industrials posting new record highs. The prospects for additional Fed easing sparked a risk-on sentiment in asset markets and boosted stocks on Thursday. Strength in semiconductor stocks led technology stocks and the overall market higher, after Intel surged more than +22% after Nvidia agreed to invest $5 billion in the company and said the two will codevelop chips for PCs and data centers.
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Stocks are also rallying on speculation that the Fed will tilt toward supporting the labor market, despite inflation risks. Bond yields rose on Wednesday, and stocks turned mixed despite the Fed cutting interest rates by 25 bp and signaling another 50 bp of rate cuts by year’s end due to hawkish comments from Fed Chair Powell, who highlighted the risk of persistent inflation and signaled less support for deeper easing of Fed policy.
Thursday’s US economic news was mostly better than expected, which pushed bond yields higher and was a negative factor for stocks. The 10-year T-note yield rose to a 2-week high on Thursday at 4.14%.
Weekly initial unemployment claims fell by -33,000 to 231,000, showing a stronger labor market than expectations of 240,000.
The Sep Philadelphia Fed business outlook survey rose by +23.5 to an 8-month high of 23.2, stronger than expectations of 1.7.
Aug leading indicators fell -0.5% m/m, weaker than expectations of -0.2% m/m and the biggest decline in four months.
The markets are pricing in a 94% chance of a -25 bp rate cut at the next FOMC meeting on Oct 28-29.
Overseas stock markets on Thursday settled mixed. The Euro Stoxx 50 climbed to a 3.5-week high and closed up sharply by +1.62%. China’s Shanghai Composite fell from a 10-year high and closed down -1.15%. Japan’s Nikkei Stock 225 rallied to a new record high and closed up +1.15%.
Interest Rates
December 10-year T-notes (ZNZ5) on Thursday closed down by -4.5 ticks. The 10-year T-note yield rose by +1.4 bp to 4.101%. Dec T-notes gave up overnight gains Thursday and dropped to a 2-week low, and the 10-year T-note yield rose to a 2-week high of 4.135%.
T-notes retreated Thursday after weekly initial jobless claims fell more than expected and the Sep Philadelphia Fed business outlook survey rose more than expected to an 8-month high, hawkish factors for Fed policy. Also, rising inflation expectations are bearish for T-notes after the 10-year breakeven inflation rate rose to a 2-week high on Thursday of 2.408%.
T-notes initially moved higher Thursday on the prospects of additional Fed easing. After cutting the federal funds target rate by 25 bp on Wednesday, the Fed signaled another 50 bp of rate cuts by year’s end.
Concerns about Fed independence are negatively impacting T-note prices due to President Trump’s attempt to fire Fed Governor Cook and Stephen Miran’s intention to hold a Fed Governor position while remaining technically in his White House role on the Council of Economic Advisors.
European government bond yields on Thursday moved higher. The 10-year German bund yield rose to a 2-week high of 2.726% and finished up +5.1 bp on its high. The 10-year UK gilt yield rose to a 1.5-week high of 4.676% and ended up +5.1 bp on its high.
As expected, the BOE, in a 7-2 vote, kept its official bank rate unchanged at 4.00% and BOE Governor Bailey said that rate cuts need to be made “gradually and carefully.”
Swaps are discounting a 2% chance for a -25 bp rate cut by the ECB at its next policy meeting on October 30.
US Stock Movers
Intel (INTC) closed up more than +22% to lead chip stocks higher and gainers in the S&P 500 and Nasdaq 100 after Nvidia agreed to invest $5 billion in the company and said the two will codevelop chips for PCs and data centers. Also, KLA Corp (KLAC), ASML Holding NV (ASML), and Applied Materials (AMAT) closed up more than +6%, and Micron Technology (MU) and Marvell Technology (MRVL) closed up more than +5%. In addition, ON Semiconductor (ON) and Lam Research (LRCX) closed up more than +4%, and Nvidia (NVDA) closed up more than +3%. Finally, GlobalFoundries (GFS) and NXP Semiconductors NV (NXPI) closed up more than +2%.
CrowdStrike Home (CRWD) closed up more than +12% in the wake of an investor briefing where the company discussed its AI strategy and gave a preliminary fiscal 2027 outlook that several analysts see as strong.
89bio (ETNB) closed up more than +85% after Roche said it will acquire the company for $3.5 billion or $14.50 per share.
AeroVironment (AVAV) closed up more than +4% after Bank of America Global Research initiated coverage of the stock with a recommendation of buy and a price target of $300.
Allstate (ALL) closed up more than +4% after reporting Aug catastrophe losses of $168 million, down -8.7% m/m.
Cooper Cos (COO) closed up more than +4% after its board approved a $1 billion increase in its stock buyback program to $2 billion.
CSX Corp (CSX) closed up more than +2% after RBC Capital Markets upgraded the stock to outperform from sector perform with a price target of $39.
FactSet Research Systems (FDS) closed down more than -10% to lead losers in the S&P 500 after reporting Q4 adjusted EPS of $4.05, below the consensus of $4.15, and forecasting 2026 adjusted EPS of $16.90-$17.60, weaker than the consensus of $18.30.
Red Cat (RCAT) closed down more than -10% after announcing it intends to sell shares of its common stock in an underwritten public offering. o lead gainers in the Nasdaq 100 after Guggenheim Securities upgraded the stock to buy from neutral with a price target of $285.
Darden Restaurants (DRI) closed down more than -7% after forecasting 2026 adjusted EPS from continuing operations of $10.50 to $10.70, the midpoint below the consensus of $10.67.
Cracker Barrel Old Country Store (CBRL) closed down more than -7% after forecasting 2025 revenue of $3.35 billion-$3.45 billion, weaker than the consensus of $3.52 billion.
Nucor (NUE) closed down more than -5% after forecasting Q3 EPS of $2.05 to $2.15, well below the consensus of $2.59.
ARM Holdings (ARM) closed down more than -4% on news that Nvidia will invest $5 billion in Intel and the two will co-design chips for PCs and data centers.
Live Nation Entertainment (LYV) closed down more than -2% after the US Federal Trade Commission and seven states sued the company and its Ticketmaster subsidiary for failing to stem the use of automated ticketing bots and large resale operations.
Earnings Reports(9/19/2025)
C&F Financial Corp (CFFI), Louisiana-Pacific Corp (LPX), Pathward Financial Inc (CASH).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stock Indexes Rally to Record Highs on Fed Rate Cut Expectations

The S&P 500 Index ($SPX) (SPY) today is up +0.67%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.46%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +1.19%. September E-mini S&P futures (ESU25) are up +0.63%, and September E-mini Nasdaq futures (NQU25) are up +1.19%.
The prospects for additional Fed easing are lifting stocks today, with the S&P 500, Nasdaq 100, and Dow Jones Industrials posting new record highs. Strength in semiconductor stocks today is a bullish factor for the overall market, led by a +25% surge in Intel after Nvidia agreed to invest $5 billion in the company and said the two will codevelop chips for PCs and data centers.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stocks are also rallying on speculation that the Fed will tilt toward supporting the labor market, despite inflation risks. Bond yields rose on Wednesday, and stocks turned mixed despite the Fed cutting interest rates by 25 bp and signaling another 50 bp of rate cuts by year’s end due to hawkish comments from Fed Chair Powell, who highlighted the risk of persistent inflation and signaled less support for deeper easing of Fed policy.
Today’s US economic news was mostly better than expected, which pushed bond yields higher and is a negative factor for stocks. The 10-year T-note yield rose to a 2-week high today at 4.14%.
Weekly initial unemployment claims fell by -33,000 to 231,000, showing a stronger labor market than expectations of 240,000.
The Sep Philadelphia Fed business outlook survey rose by +23.5 to an 8-month high of 23.2, stronger than expectations of 1.7.
Aug leading indicators fell -0.5% m/m, weaker than expectations of -0.2% m/m and the biggest decline in four months.
The markets are pricing in an 86% chance of a -25 bp rate cut at the next FOMC meeting on Oct 28-29.
Overseas stock markets today are mixed. The Euro Stoxx 50 climbed to a 3.5-week high and is up sharply by +1.66%. China’s Shanghai Composite fell from a 10-year high and closed down -1.15%. Japan’s Nikkei Stock 225 rallied to a new record high and closed up +1.15%.
Interest Rates
December 10-year T-notes (ZNZ5) today are down by -9 ticks. The 10-year T-note yield is up by +3.7 bp to 4.124%. Dec T-notes gave up overnight gains today and dropped to a 2-week low, and the 10-year T-note yield rose to a 2-week high of 4.135%.
T-notes retreated today after weekly initial jobless claims fell more than expected and the Sep Philadelphia Fed business outlook survey rose more than expected to an 8-month high, hawkish factors for Fed policy. Also, rising inflation expectations are bearish for T-notes after the 10-year breakeven inflation rate today rose to a 2-week high of 2.408%.
T-notes initially moved higher today on the prospects of additional Fed easing. After cutting the federal funds target rate by 25 bp on Wednesday, the Fed signaled another 50 bp of rate cuts by year’s end.
Concerns about Fed independence are negatively impacting T-note prices due to President Trump’s attempt to fire Fed Governor Cook and Stephen Miran’s intention to hold a Fed Governor position while remaining technically in his White House role on the Council of Economic Advisors.
European government bond yields today are moving higher. The 10-year German bund yield rose to a 2-week high of 2.726% and is up +4.3 bp to 2.718%. The 10-year UK gilt yield is up +4.6 bp to 4.671%.
As expected, the BOE, in a 7-2 vote, kept its official bank rate unchanged at 4.00% and BOE Governor Bailey said that rate cuts need to be made “gradually and carefully.”
Swaps are discounting a 2% chance for a -25 bp rate cut by the ECB at its next policy meeting on October 30.
US Stock Movers
Intel (INTC) is up more than +25% to lead chip stocks higher and gainers in the S&P 500 and Nasdaq 100 after Nvidia agreed to invest $5 billion in the company and said the two will codevelop chips for PCs and data centers. Also, KLA Corp (KLAC) is up more than +7%, and ASML Holding NV (ASML) and Applied Materials (AMAT) are up more than +6%. In addition, Micron Technology (MU) is up more than +5%, and Marvell Technology (MRVL), ON Semiconductor (ON), and Lam Research (LRCX) are up more than +4%. Finally, GlobalFoundries (GFS) is up more than +3%, and Nvidia (NVDA) is up more than +2% to lead gainers in the Dow Jones Industrials.
CrowdStrike Home (CRWD) is up more than +10% in the wake of an investor briefing where the company discussed its AI strategy and gave a preliminary fiscal 2027 outlook that several analysts see as strong.
89bio (ETNB) is up more than +86% after Roche said it will acquire the company for $3.5 billion or $14.50 per share.
IonQ (IONQ) is up more than +4% after signing a Memorandum of Understanding (MOU) with the US Department of Energy to advance the development and deployment of quantum technologies in space.
AeroVironment (AVAV) is up more than +4% after Bank of America Global Research initiated coverage of the stock with a recommendation of buy and a price target of $300.
Allstate (ALL) is up more than +4% after reporting Aug catastrophe losses of $168 million, down -8.7% m/m.
CSX Corp (CSX) is up more than +2% after RBC Capital Markets upgraded the stock to outperform from sector perform with a price target of $39.
Darden Restaurants (DRI) is down more than -9% to lead losers in the S&P 500 after forecasting 2026 adjusted EPS from continuing operations of $10.50 to $10.70, the midpoint below the consensus of $10.67.
Red Cat (RCAT) is down more than -8% after announcing it intends to sell shares of its common stock in an underwritten public offering. o lead gainers in the Nasdaq 100 after Guggenheim Securities upgraded the stock to buy from neutral with a price target of $285.
ARM Holdings (ARM) is down more than -4% to lead losers in the Nasdaq 100, and Advanced Micro Devices (AMD) is down more than -3% on news that Nvidia will invest $5 billion in Intel and the two will co-design chips for PCs and data centers.
Nucor (NUE) is down more than -4% after forecasting Q3 EPS of $2.05 to $2.15, well below the consensus of $2.59.
FactSet Research Systems (FDS) is down more than -3% after reporting Q4 adjusted EPS of $4.05, below the consensus of $4.15, and forecasting 2026 adjusted EPS of $16.90-$17.60, weaker than the consensus of $18.30.
Cracker Barrel Old Country Store (CBRL) is down more than -2% after forecasting 2025 revenue of $3.35 billion-$3.45 billion, weaker than the consensus of $3.52 billion.
Earnings Reports(9/18/2025)
Darden Restaurants Inc (DRI), Ennis Inc (EBF), FactSet Research Systems Inc (FDS), FedEx Corp (FDX), Golden Matrix Group Inc (GMGI), Lennar Corp (LEN), Scholastic Corp (SCHL).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Record Highs for Major Stock Indexes as Chip Makers Soar

The S&P 500 Index ($SPX) (SPY) today is up +0.35%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.03%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.70%. September E-mini S&P futures (ESU25) are up +0.23%, and September E-mini Nasdaq futures (NQU25) are up +0.58%.
Stock indexes are moving higher today, with the S&P 500 and Nasdaq 100 posting new record highs. The prospects for additional Fed easing are lifting stocks today on speculation the Fed will tilt toward supporting the labor market, despite inflation risks. Bond yields rose on Wednesday, and stocks turned mixed despite the Fed cutting interest rates by 25 bp and signaling another 50 bp of rate cuts by year’s end due to hawkish comments from Fed Chair Powell, who highlighted the risk of persistent inflation and signaled less support for deeper easing of Fed policy.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Strength in semiconductor stocks today is another bullish factor for the overall market, led by a +20% surge in Intel after Nvidia agreed to invest $5 billion in the company and said the two will codevelop chips for PCs and data centers.
Stock indexes fell back from their best levels today as better-than-expected US economic news pushed bond yields higher. Weekly initial unemployment claims fell by -33,000 to 231,000, showing a stronger labor market than expectations of 240,000. Also, the Sep Philadelphia Fed business outlook survey rose +23.5 to an 8-month high of 23.2, stronger than expectations of 1.7. The 10-year T-note yield rose to a 2-week high today at 4.12%.
The markets are pricing in an 86% chance of a -25 bp rate cut at the next FOMC meeting on Oct 28-29.
Overseas stock markets today are mixed. The Euro Stoxx 50 climbed to a 3.5-week high and is up sharply by +1.32%. China’s Shanghai Composite fell from a 10-year high and closed down -1.15%. Japan’s Nikkei Stock 225 rallied to a new record high and closed up +1.15%.
Interest Rates
December 10-year T-notes (ZNZ5) today are down by -8 ticks. The 10-year T-note yield is up by +2.7 bp to 4.114%. Dec T-notes gave up overnight gains and dropped to a 2-week low, and the 10-year T-note yield rose to a 2-week high of 4.118%.
T-notes retreated today after weekly initial jobless claims fell more than expected and the Sep Philadelphia Fed business outlook survey rose more than expected to an 8-month high, hawkish factors for Fed policy. Also, rising inflation expectations are bearish for T-notes after the 10-year breakeven inflation rate today rose to a 2-week high of 2.408%.
T-notes today initially moved higher on the prospects of additional Fed easing. After cutting the federal funds target rate by 25 bp on Wednesday, the Fed signaled another 50 bp of rate cuts by year’s end.
Concerns about Fed independence are negatively impacting T-note prices due to President Trump’s attempt to fire Fed Governor Cook and Stephen Miran’s intention to hold a Fed Governor position while remaining technically in his White House role on the Council of Economic Advisors.
European government bond yields today are moving higher. The 10-year German bund yield rose to a 2-week high of 2.719% and is up +3.4 bp to 2.709%. The 10-year UK gilt yield is up +2.9 bp to 4.654%.
As expected, the BOE, in a 7-2 vote, kept its official bank rate unchanged at 4.00% and BOE Governor Bailey said that rate cuts need to be made “gradually and carefully.”
Swaps are discounting a 2% chance for a -25 bp rate cut by the ECB at its next policy meeting on October 30.
US Stock Movers
Intel (INTC) is up more than +23% to lead chip stocks higher and gainers in the S&P 500 and Nasdaq 100 after Nvidia agreed to invest $5 billion in the company and said the two will codevelop chips for PCs and data centers. Also, ASML Holding NV (ASML) is up more than +5% and Marvell Technology (MRVL) and KLA Corp (KLAC) are up more than +4%. In addition, Applied Materials (AMAT), Micron Technology (MU), and Lam Research (LRCX) are up more than +3%, and Nvidia (NVDA) is up more than +2% to lead gainers in the Dow Jones Industrials. Finally, GlobalFoundries (GFS), ON Semiconductor (ON), Microchip Technology (MCHP), Analog Devices (ADI), and NXP Semiconductors NV (NXPI) are up more than +1%.
CrowdStrike Home (CRWD) is up more than +9% in the wake of an investor briefing where the company discussed its AI strategy and gave a preliminary fiscal 2027 outlook that several analysts see as strong.
IonQ (IONQ) is up more than +5% after signing a Memorandum of Understanding (MOU) with the US Department of Energy to advance the development and deployment of quantum technologies in space.
89bio (ETNB) is up more than +86% after Roche said it will acquire the company for $3.5 billion pr $14.50 per share.
AeroVironment (AVAV) is up more than +3% after Bank of America Global Research initiated coverage of the stock with a recommendation of buy and a price target of $300.
Allstate (ALL) is up more than +2% after reporting Aug catastrophe losses of $168 million, down -8.7% m/m.
CSX Corp (CSX) is up more than +1% after RBC Capital Markets upgraded the stock to outperform from sector perform with a price target of $39.
Red Cat (RCAT) is down more than -11% after announcing it intends to sell shares of its common stock in an underwritten public offering. o lead gainers in the Nasdaq 100 after Guggenheim Securities upgraded the stock to buy from neutral with a price target of $285.
Darden Restaurants (DRI) is down more than -9% to lead losers in the S&P 500 after forecasting 2026 adjusted EPS from continuing operations of $10.50 to $10.70, the midpoint below the consensus of $10.67.
ARM Holdings (ARM) is down more than -5% to lead losers in the Nasdaq 100, and Advanced Micro Devices (AMD) is down more than -3% on news that Nvidia will invest $5 billion in Intel and the two will co-design chips for PCs and data centers.
Cracker Barrel Old Country Store (CBRL) is down more than -4% after forecasting 2025 revenue of $3.35 billion-$3.45 billion, weaker than the consensus of $3.52 billion.
Nucor (NUE) is down more than -4% after forecasting Q3 EPS of $2.05 to $2.15, well below the consensus of $2.59.
FactSet Research Systems (FDS) is down more than -3% after reporting Q4 adjusted EPS of $4.05, below the consensus of $4.15, and forecasting 2026 adjusted EPS of $16.90-$17.60, weaker than the consensus of $18.30.
Earnings Reports(9/18/2025)
Darden Restaurants Inc (DRI), Ennis Inc (EBF), FactSet Research Systems Inc (FDS), FedEx Corp (FDX), Golden Matrix Group Inc (GMGI), Lennar Corp (LEN), Scholastic Corp (SCHL).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Climb on Hopes of Additional Fed Easing

Key Points
AeroVironment is maturing as a defense contractor and is increasingly seeking sales to allies to augment domestic growth.
A change in U.S. policy designed to ease export restrictions on drones could help power revenue higher.
The U.S. government is modifying its export policy on drones, creating new opportunities for the companies that sell them.
Shares of AeroVironment (NASDAQ: AVAV), one of the companies most likely to benefit from the change, were up 5% as of 3:30 p.m. ET as a result.
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Selling to a wider audience
AeroVironment is a defense contractor that has jumped on a lot of radars in the past few years. The company's small drones have been a key part of United States military aid packages sent to Ukraine, and its drones have proven their usefulness on the battlefield.
Late Monday, the Department of State said it would review requests to export unmanned aerial systems (UAS) similar to how it reviews requests to export piloted aircraft not as missile systems. The move, according to the official release, means "the Department will be able to more efficiently adjudicate foreign defense sales requests, opening new markets for the U.S. UAS industry."
While the move does not provide any immediate revenue boost for AeroVironment, it could help answer investor questions about whether the company will be able to sustain revenue momentum even when demand from Ukraine falls.
Is AeroVironment a buy?
For AeroVironment to work out for long-term investors, the company is going to have to grow its product portfolio. There is good news on that front as well.
Last week, the company confirmed its BlueHalo subsidiary had been awarded a $499 million, eight-year contract from the Air Force to continue development of systems that can survive electromagnetic jamming. AeroVironment bought BlueHalo earlier this year as a new avenue of growth, and the contract suggests that the company is having success turning that potential into revenue.
There's more work to be done, and with AeroVironment trading at more than 140 times earnings, there is a lot of potential already priced into the stock. But for investors looking for a rare long-term growth stock in the defense sector, AeroVironment is an intriguing choice.
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Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AeroVironment. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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