Wall Street Rallies as Dow, S&P 500 and Nasdaq Climb — Nvidia Hits $4 Trillion Market Cap as Trump Drops New Tariff Bombshell
Massive Tech Surge Sends Indexes Higher While Trade Tensions Simmer
Investors began Wednesday with optimism as the Dow Jones Industrial Average surged 286.20 points (up 0.65%), the S&P 500 rose 39.70 points (0.64%) and the Nasdaq Composite jumped 195.72 points (0.95%), led by a powerful rally in technology stocks. At the heart of the action, Nvidia (ticker NVDA, traded on the NASDAQ, sector: information technology) became the first-ever publicly traded company to hit a $4 trillion market capitalization, as shares gained roughly 2–2.4% in early trading. This milestone underlines Nvidia’s dominance in the AI chip race and stands as a defining marker of investor enthusiasm in artificial intelligence.
Despite the backdrop of sharp new trade threats from President Donald Trump, including a steep 50 percent tariff on copper and warning tariffs on semiconductors and pharmaceutical goods, sentiment remained relatively calm. Markets are banking on an August 1 deadline for negotiations—buying time for diplomacy that could defuse broader disruptions.
Tech shares led sector gains, with the S&P technology index climbing 1.2%. Other mega-cap names such as Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), and Meta (META)—all traded on the NASDAQ and part of the tech sector—also edged higher. Nvidia now accounts for about 7.3% of the S&P 500 weighting—more than any other company in the index—underscoring its outsized influence on overall market performance.
Analysts emphasize that Nvidia’s rise reflects long-term AI demand rather than just short-term momentum. Wedbush’s Dan Ives hailed CEO Jensen Huang as the “Godfather of AI,” highlighting a nearly 909% share gain since the November 2022 launch of ChatGPT. A noted rally of 74% since April’s lows shows how Nvidia reclaimed its ground despite earlier tariff-driven dips.
Cautious voices warn of market fragility ahead: strategist Daniel von Ahlen flagged slowing consumer spending, tariff inflation risks, and mounting pressure on Fed rate cut projections as potential headwinds. The minutes from the Federal Reserve’s June meeting and Thursday’s jobless claims are poised to sway expectations, though a September rate cut remains priced in at roughly 64% odds.
Elsewhere in the S&P 500, AES Corp. (ticker AES, NYSE, utilities sector) jumped about 14–16% on speculation of a potential sale, while UnitedHealth Group (ticker UNH, NYSE, healthcare sector) fell 2–2.4% amid a U.S. Department of Justice probe into its Medicare billing practices. Boeing (ticker BA, NYSE, aerospace sector) gained over 4% following a strong update on aircraft deliveries.
With Nvidia’s meteoric valuation, broader gains in major indexes, and trade policy volatility front and center, U.S. stock markets delivered a day of optimism soaked in AI momentum but tethered to macro uncertainty. Whether Nvidia sustains its dominance or policymakers inject fresh volatility, today’s trading confirmed one truth: AI is reshaping Wall Street—and Nvidia is writing the script.