Tech surge drives US markets higher as Nvidia hits historic $4 trillion valuation

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US shares surged at Wednesday’s opening, driven by a robust technology rally led by Nvidia’s historic $4 trillion market valuation, the first for any publicly traded company.

The Dow Jones Industrial Average climbed 309 points, or 0.7 percent, rebounding from two consecutive days of declines. The S&P 500 advanced 0.7 percent, while the Nasdaq Composite outpaced with a 1 percent gain, fuelled by strong performances from tech giants.

Nvidia’s shares rose 2.55 percent, supported by gains in Meta Platforms, Microsoft, and Alphabet, which bolstered investor optimism.

Markets showed resilience despite President Trump’s recent tariff policies, including 25 to 40 percent duties on imports from Japan and South Korea, effective from 1 August, and a 50 percent levy on copper imports. Trump also proposed potential 200 percent tariffs on pharmaceuticals, with implementation delayed for up to 18 months to allow businesses to adapt.

These policies have raised concerns about trade disruptions and inflationary pressures, yet investors remained focused on corporate earnings and technological advancements. The upcoming release of the Federal Open Market Committee’s latest meeting minutes, expected later today, is anticipated to provide further clarity on monetary policy, particularly regarding interest rate expectations and economic growth forecasts.

The technology sector’s strength underscored its pivotal role in driving market gains, with Nvidia’s milestone reflecting the growing influence of artificial intelligence and semiconductor innovation. Other sectors showed mixed responses, as investors weighed the potential impacts of tariffs on global supply chains.

The market’s upbeat mood was further supported by positive corporate developments, highlighting a focus on innovation and strategic growth opportunities in a complex economic landscape.