Nasdaq Soars as Nvidia Hits $4 Trillion and Fed Signals Rate Cut Hopes

U.S. stock markets ended Wednesday on a strong note, led by tech-heavy Nasdaq, after Nvidia briefly crossed the $4 trillion valuation mark and Federal Reserve minutes hinted at a possible rate cut later this year.

Nvidia Breaks Records Amid AI Surge

Nvidia became the first company ever to touch a $4 trillion market valuation on Wednesday morning, underlining its dominance in the artificial intelligence sector. The chipmaker's stock climbed 1.8% by the close, placing its market cap around $3.97 trillion. The company continues to be a magnet for investors betting big on AI-driven growth.

Fed Minutes Open the Door to Future Rate Cuts

Investors found further encouragement in the recently released minutes from the Fed's June meeting. The document revealed that a majority of Federal Reserve officials see a rate reduction as a viable option by year's end. They believe the inflationary effects of former President Donald Trump's tariffs are likely to be temporary or moderate.

However, the sentiment at the Fed's July meeting appeared more cautious, with limited backing for immediate rate action.

Markets Hope for Monetary Policy Relief

Even as inflation concerns linger due to past trade policies, Wall Street continued to scale new heights. Nasdaq closed at an all-time high, reflecting investor confidence. Chris Zaccarelli, Chief Investment Officer at Northlight Asset Management, noted that inflation worries have been a key factor behind the Fed's hesitation to tighten monetary policy further.

Tech Heavyweights Power Market Rally

Alongside Nvidia, other mega-cap stocks contributed to Wall Street's upward momentum on Wednesday. Microsoft shares climbed by 1.4 percent, while Amazon added 1.5 percent. These gains signaled strong investor confidence in major technology players despite recent market jitters.

Markets Brush Off Tariff Threats as Hopes Rise for Talks

Although stocks dipped on Monday amid renewed trade tensions, the indices quickly regained stability. Analysts say traders have grown more accustomed to former President Donald Trump's aggressive trade rhetoric. With the implementation of the latest tariff package postponed until August 1, many are betting that negotiations could ease the conflict.

Trump Targets New Tariff Regimes for Several Nations

On Wednesday, Trump reportedly sent letters to seven countries proposing new import duties: 30 percent for Algeria, Iraq, Libya, and Sri Lanka; 25 percent for Brunei and Moldova; and 20 percent for the Philippines. Meanwhile, the European Union expressed optimism about reaching a broad trade agreement with the United States in the coming days.

Key Index Closings for the Day:

• Dow Jones gained 217.54 points, or 0.49 percent, ending at 44,458.30;
• S&P 500 rose by 37.74 points, or 0.61 percent, to close at 6263.26;
• Nasdaq Composite advanced by 192.87 points, or 0.95 percent, finishing at 20,611.34

Sector Winners and Losers:

Out of the 11 primary sectors in the S&P 500, eight closed higher.

Top performers included:

• Utilities, with a 1 percent gain;
• Technology, up 0.9 percent.

The worst-performing sector was consumer staples, which slipped by 0.6 percent

Investors Turn to Labor Data After Wall Street's Record Highs

Following last week's record-breaking performance by the S and P 500 and Nasdaq — powered by an unexpectedly strong jobs report — investors are now looking to Thursday's unemployment claims data for fresh insight into the strength of the US labor market.

AES Surges on Speculation of Possible Sale

Shares of energy provider AES Corp jumped 19.8 percent after a Bloomberg report revealed that the company is exploring strategic options, including a potential sale. The news sparked immediate enthusiasm among traders betting on corporate restructuring.

Boeing Gains on Rising Aircraft Deliveries

Boeing stock climbed 3.7 percent after analysts at Susquehanna raised their price target. The upgrade followed the company's report that its aircraft deliveries in June rose by 27 percent year-over-year — a positive signal for the recovering aerospace sector.

UnitedHealth Drops Amid Justice Department Probe

UnitedHealth Group saw its shares fall 1.6 percent after the Wall Street Journal reported a federal investigation. The US Department of Justice is examining whether the insurer used doctors and nurses to generate diagnostic data that boosted Medicare payments, raising concerns about billing practices.

European Stocks Lifted by Mining Rally

European markets opened Thursday in positive territory, with mining stocks leading the way. Investors were optimistic over prospects for a trade agreement between the European Union and the United States. The pan-European STOXX 600 index rose 0.5 percent to reach 552.45 points as of 07:09 GMT.

Regional Index Overview: Mostly Up, With One Exception

Most major European indices were trading higher in early hours, with the exception of Spain's IBEX, which edged down by 0.1 percent.

US and EU Near Completion of Trade Agreement

Trade negotiators from the United States and the European Union are on the verge of finalizing a broad economic agreement. On Wednesday, EU trade chief Maros Sefcovic announced that substantial headway had been made and suggested that a formal deal could be reached within days. The European Commission, according to Sefcovic, is optimistic about concluding the framework agreement soon.

Protecting Europe's Auto Industry

Insiders from both EU institutions and the automotive sector confirmed that discussions include proposals to shield the European car industry from external economic shocks. Safeguard measures remain a key point in the negotiations.

Trump Slaps New Tariffs on Copper and Brazil

Meanwhile, President Donald Trump unveiled a fresh wave of tariffs. Effective August first, the US will impose a 50 percent duty on copper imports and an equivalent tariff on selected Brazilian goods. In addition, Washington has issued new tariff letters to seven more trade partners, adding to the 14 that received similar notices earlier this week.

Mining and Healthcare Stocks Gain, Chocolate Takes a Hit

European equity markets responded positively to the developments. Mining stocks surged by 2.8 percent, while healthcare companies saw their shares rise by 1.1 percent.

In contrast, Swiss chocolate maker Barry Callebaut faced a sharp setback. Its shares dropped 7.2 percent after the company cut its production forecast for the third time this year — signaling deeper-than-expected challenges in its output strategy.