Nasdaq Hits Record Close as Nvidia Surges Past $4 Trillion Market Cap

U.S. stocks closed at record highs Wednesday, with the Nasdaq leading the charge after Nvidia became the first chipmaker to cross a $4 trillion valuation. The tech rally helped offset market concerns over President Donald Trump’s latest round of tariffs.

As of 4:00 pm ET, the Nasdaq Composite 100 Futures rose 0.95% to close at a record 20,611.34. The Dow Jones Industrial Average gained 217 points, or 0.5%, while the S&P 500 advanced 0.6%.


Nvidia Breaks $4 Trillion Barrier, Lifts Tech Sector

Shares of NVIDIA Corporation (NASDAQ: NVDA) climbed 2%, boosting its market capitalization above $4 trillion. The surge reinforced Nvidia’s leadership in the AI-chip space and powered broader gains across the tech sector.

“This is a historical moment for Nvidia, the tech space flexing its muscles, and speaks to the AI Revolution hitting its next stage of growth led by the one chip fueling AI…Nvidia,” analysts at Wedbush wrote in a note.

Other major tech stocks also gained, including Meta Platforms Inc. (NASDAQ: META).


Fed Minutes Suggest Rate Cuts Still Possible in 2025, but Views Diverge

The Federal Reserve’s June 17–18 meeting minutes showed most policymakers still anticipate rate cuts later this year. However, internal divisions are emerging: some officials support cuts as early as July, while others see little need for easing amid current conditions.

President Trump has intensified criticism of the Fed’s stance, pressuring Chair Jerome Powell to lower rates and even calling for his resignation. On Tuesday, Trump cited a Council of Economic Advisers study claiming tariffs haven’t yet driven inflation.

Meanwhile, The Wall Street Journal reported that Trump’s economic adviser Kevin Hassett is now a strong contender to replace Powell, overtaking previous favorite Kevin Warsh, a former Fed governor.


Trump Targets Copper in Expanded Tariff Agenda

Markets began the week on a cautious note after Trump announced new tariffs on major trading partners, though he delayed implementation from July 9 to August 1.

Speaking Tuesday, Trump insisted the new deadline was final and confirmed that the EU is next in line to receive a tariff warning. While EU-U.S. trade talks continue, challenges remain in securing tariff relief and longer-term stability, according to Bernd Lange, head of the European Parliament’s trade committee.

Trump also floated the idea of a 50% tariff on imported copper, highlighting his administration’s increasing focus on targeting specific sectors. Copper, critical to automotive production, defense, and power infrastructure, could see broad impacts.

Additional tariffs on products ranging from pharmaceuticals to semiconductors may be announced soon, Trump indicated.

Treasury Secretary Scott Bessent claimed Trump’s tariffs have already generated $100 billion in revenue for the U.S. in 2025, with projections of $300 billion by year-end, following an expansion of duties in Q2.


Goldman Sachs Warns of Limited Equity Upside in Short Term

Despite the rally, Goldman Sachs strategists are cautious on near-term equity performance. Pointing to high valuations and macroeconomic uncertainties, the firm sees a rising risk of market pullbacks.

Led by Christian Mueller-Glissmann, the team maintains a neutral stance for the next three months but remains optimistic over a 12-month horizon, citing long-term growth drivers and supportive fiscal and monetary policies.

However, they caution that in late-cycle environments, equity valuations often overshoot, particularly when inflation trends are weakening outside the U.S. “The probability of an equity drawdown is now larger than that of a large rally,” the strategists noted.

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