Nvidia achieves a milestone by soaring to a $4 trillion valuation, becoming the first company to do so, highlighting its prominent position in the ongoing surge in demand for artificial intelligence technologies.
The Dow Jones Industrial Average surged 286.20 points, the S&P 500 gained 39.70 points,and the Nasdaq Composite rose by 195.72 points, reflecting the resilience of Wall Street amid the tariff concerns.
The big picture: Tech stocks lead the way as seven out of 11 S&P sectors record gains, with the technology index showing a notable 1.2% rise, demonstrating the sector’s strength and the market’s confidence in it.
- President Trump announced a 50% tariff on copper and plans tariffs on semiconductors and pharmaceuticals, adding to the ongoing trade tensions, which investors seemingly shrugged off as Wall Street continues its upward trajectory.
- The market’s response to the latest tariff announcements contrasts with Monday’s selloff triggered by the White House’s tariff threats against Japan and South Korea, indicating a tentative stability in the face of increasing trade tensions.
What we’re watching: The tariff deadlines were postponed to Aug. 1, with investors expressing optimism in potential negotiations to avoid a full-blown trade war, believing that progress in trade talks can avert further market disruption.
- Investors are keeping a close watch on the upcoming initial jobless claims and the minutes from the Federal Reserve’s June meeting, seeking insights into the labor market and potential indications of policymakers’ stance on interest rates.
- While a July rate reduction is almost ruled out, betting odds for a September rate cut stand at around 66%, reflecting investors’ expectations amidst the unpredictable trade environment.
