The stock market showed minimal growth during Wednesday as Nvidia exceeded $4 trillion market value despite President Donald Trump announcing new tariff threats.
The S&P 500 index increased 0.24% to reach 6,240.73 while the Nasdaq rose 0.55% to 20,530.36 and the Dow Jones Industrial Average gained 0.06% to 44,268.92. The technology and communication services sectors experienced the most significant gains because of Nvidia’s 2% price increase. The company achieved this milestone by becoming the first corporation to reach a $4 trillion market capitalization value while demonstrating its leadership position in AI hardware development.
According to Dakota Wealth’s Robert Pavlik Nvidia serves as the fundamental infrastructure component for the AI infrastructure boom. The market shows potential for additional growth.
Markets reacted with minimal disturbance to Trump’s trade escalation announcements. The President declared a 50% copper tariff while stating that semiconductor and pharmaceutical product levies will follow soon. Investors used to show intense reactions to these moves but they now believe Trump will reverse his decisions before August 1.
The tariff situation remains unpredictable according to Osaic Wealth strategist Philip Blancato. The continuous back-and-forth between parties has produced a calming effect on investors.
Market sentiment remained stable because of positive expectations about a U.S.-EU trade agreement and the strong June employment figures before the upcoming jobless claims data release on Thursday.
