Markets shifted their gaze away from trade tensions on Wednesday, turning instead to a historic milestone for AI leader Nvidia. As Fed commentary and new tariffs hovered in the background, investor enthusiasm was fueled by tech optimism.
Nvidia Hits $4 Trillion Milestone
Nvidia became the first company to reach a $4 trillion market valuation, extending its leadership in the AI chip space and pushing the Nasdaq 0.9% higher. The S&P 500 also gained 0.6%, with other mega-cap tech stocks rising—only Tesla declined in late trade.
Investors shrugged off trade threats for a moment as Nvidia’s dominance in AI semiconductors reinforced risk appetite across the broader market.
Trump Pushes More Tariffs, EU Deal in Progress
President Trump followed through on his tariff promises, announcing:
- 50% tariff on copper imports
- Threats of new duties on imported chips and pharmaceuticals
- Final tariff notices to seven smaller partners, including:
- 20% on the Philippines
- 30% on Sri Lanka, Algeria, Iraq, Libya
- 25% on Brunei and Moldova
While markets showed muted reaction, the administration signaled it’s inching closer to a trade deal with the European Union, possibly to be finalized before the August deadline.
Fed Minutes: A Divided House
Minutes from the June Fed meeting revealed a split view. Some members favored a rate cut as early as this month, while most remained concerned about tariff-driven inflation. The cautious tone kept bond markets steady, with the 10-year yield falling 7.5 bps after a solid $39 billion auction.
Market Snapshot
- S&P 500: +0.6%
- Nasdaq: +0.9%
- 10-Year Treasury Yield: ↓ to ~4.28%
- U.S. Dollar: Eased vs. yen, flat elsewhere
- Crude Oil: +0.01% to $68.34/barrel
- Gold: +0.35% to $3,311/oz
What to Watch Next
- Thursday: U.S. jobless claims + $22B 30-year Treasury auction
- Ongoing: Tariff outcomes, especially the EU deal
- Corporate: First earnings reports under new trade rules
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