Introduction
Erste Group analyst Hans Engel has upgraded Intel from sell to hold, citing manufacturing breakthroughs and a major NVIDIA investment. Meanwhile, the S&P 500 faces pressure from government shutdown fears despite recent Fed rate cuts. This week’s earnings calendar remains light until larger companies report later.
Key Points
- Intel upgraded from sell to hold by Erste Group analyst due to manufacturing technology success and NVIDIA's $5 billion investment
- S&P 500 ETF (VOO) declines as government shutdown fears overshadow recent Federal Reserve rate cuts
- Earnings week begins quietly with notable reports from Costco, Accenture, and Cintas expected later
Analyst Upgrade Signals Intel's Manufacturing Turnaround
In a significant shift for the semiconductor giant, Erste Group analyst Hans Engel removed his sell rating on Intel (Nasdaq: INTC) stock, upgrading it to hold on September 22, 2025. The upgrade comes as Intel demonstrates tangible progress in its manufacturing technology, which Engel notes has “enabled it to increase production speed.” This manufacturing success appears to be gaining external validation, with Engel highlighting that industry leaders NVIDIA and Broadcom are already testing Intel’s production platform.
The most compelling evidence of Intel’s resurgence comes from NVIDIA’s recent announcement of a $5 billion investment in Intel and a collaboration to jointly develop data center and PC products. This substantial commitment from one of the semiconductor industry’s most successful companies signals growing confidence in Intel’s technological capabilities and manufacturing roadmap. The market responded positively to the news, with Intel stock rising 1.7% following the upgrade, contrasting with the broader market’s downward trend.
Broader Market Weighed Down by Government Shutdown Concerns
While Intel enjoyed positive momentum, the broader market faced headwinds as the Vanguard S&P 500 ETF (NYSEMKT: VOO) declined 0.2%. This market softness comes despite recent supportive actions from the Federal Reserve, which last week lowered its target interest rate by 0.25% and expressed willingness to cut twice more in October and December this year. Those moves had helped boost the index of America’s 500 largest listed companies, with VOO gaining 1.2% last week.
The current market anxiety stems primarily from political uncertainty in Washington. Investors are growing increasingly concerned that Democratic opposition to proposed continuing resolutions in Congress could force a government shutdown. With the government needing to pass a temporary funding measure by September 30 to avoid a shutdown, market participants are bracing for potential volatility throughout the trading week and into the weekend. The VOO was down 0.3% in premarket trading, indicating that shutdown fears are overshadowing the positive momentum from the Fed’s accommodative stance.
Earnings Calendar Light Until Midweek Surge
The earnings week began quietly on Monday, with no major companies scheduled to report results—a typical pattern as companies predominantly prefer to release earnings midweek. The calm before the storm sets the stage for increased market activity as the week progresses, with investors particularly focused on several key reports across different sectors.
Tuesday brings attention to the space sector with Firefly Aerospace (Nasdaq: FLY) set to release its first earnings report since its IPO, alongside satellite company Spire Global (NYSE: SPIR). Wednesday marks the beginning of larger company reports, featuring Cintas Corporation (Nasdaq: CTAS) and KB Home (NYSE: KBH). Thursday promises to be the busiest day for earnings, with heavyweight retailers Costco (Nasdaq: COST) and CarMax (NYSE: KMX) reporting alongside professional services giant Accenture (NYSE: ACN). Of these companies, only Cintas and Costco represent S&P 500 components, making their results particularly significant for index investors tracking VOO.
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