On July 9, 2025, US stocks saw a positive uptick as investors reacted to significant movements in the markets, particularly driven by Nvidia (NVDA) reaching the unprecedented milestone of a $4 trillion market cap. The tech giant's stock surged over 2% shortly after the trading opened, reflecting its ongoing dominance in the AI sector and solidifying its position as the most valuable company in history.
The Dow Jones Industrial Average (^DJI) recorded a gain of nearly 0.5%, while the S&P 500 (^GSPC) increased by 0.6%. The Nasdaq Composite (^IXIC) outperformed with a 0.9% rise, closing at a new all-time high of 20,611.34, buoyed by strong performance from major tech stocks.
Nvidia's stock performance is particularly noteworthy as it marks the first time a publicly traded company has achieved a $4 trillion market cap. Earlier in the session, Nvidia shares peaked at around $164, reflecting a year-to-date gain of approximately 22%. Despite intensifying trade tensions, particularly warnings from President Trump about potential high tariffs on copper and pharmaceuticals, investors appeared to be optimistic about the tech sector.
On the same day, President Trump announced further tariff rates ranging from 20% to 30% on various countries, adding to the uncertainty in global trade dynamics. Analysts worry that these tariffs could escalate the current trade war, which has impacted investor sentiment across various sectors, including technology and pharmaceuticals.
The release of the Federal Reserve meeting minutes on Wednesday added another layer of intrigue for investors. The minutes indicated that only a couple of Fed officials expressed support for immediate interest rate cuts. Most participants believe that some reduction in the funds rate would be appropriate this year, fostering speculation about potential monetary policy adjustments in the coming months.
Market forecasts suggest the earliest possibility for a rate cut to occur in September, despite public calls from Trump urging action to lower rates in response to perceived inflationary pressures.
In sector-specific movements, copper prices retreated by 3% as concerns about Trump's proposed tariffs lingered. The copper market reacted sharply following announcements of up to 50% tariffs on imported copper, crucial for many industries.
Additionally, shares of Starbucks (SBUX) experienced a notable increase of 2% amid reports of multiple offers for its China operations, showcasing strategic moves in the market. Furthermore, Merck's (MRK) agreement to acquire Verona Pharma (VRNA) for approximately $10 billion highlighted a resurgence in M&A activities within the healthcare sector.
As traders digest this combination of strong corporate performances and the uncertain economic landscape, they remain vigilant of further developments surrounding trade negotiations and Federal Reserve policies. The resilience seen in major indices could be indicative of broader market confidence, even amidst challenges posed by geopolitical events and domestic economic pressures.
In conclusion, while Nvidia's record valuation is a focal point, the intertwining elements of tariffs, Fed decisions, and sector-specific earnings will continue to drive market dynamics in the foreseeable future.