Nvidia Hits $4 Trillion as Global Markets Surge

Nvidia on the rise

​​​Nvidia made history on Wednesday, becoming the world's first company to briefly touch a $4 trillion market valuation. The artificial intelligence (AI) chip giant's 1.8% gain helped it reach this unprecedented milestone before settling with a market cap of around $3.97 trillion, demonstrating once again the outsized influence of artificial intelligence on market direction.

​The euphoria wasn't confined to Silicon Valley. European markets joined the party, with both the DAX 40 and FTSE 100 hitting fresh record highs as investors shrugged off concerns about Trump's latest tariff threats. The bullish sentiment reflected growing confidence that trade negotiations will ultimately prevail over protectionist rhetoric.

​Wall Street follows Europe's lead

​The positive mood carried across the Atlantic, with Wall Street closing higher across the board. The Nasdaq 100 led the charge, gaining 0.95% to close at a fresh record high, while the S&P 500 added 0.61% and the Dow Jones climbed 0.49%. Megacap stocks dominated the advance, with Microsoft up 1.4% and Amazon adding 1.5%.

​Fed minutes fuel rate cut hopes

​The catalyst for much of Wednesday's gains came from the Federal Reserve's (Fed) June meeting minutes, which revealed that most officials expect rate cuts to be appropriate later this year. Crucially, policymakers suggested that any price shocks from Trump's import tariffs would be "temporary or modest" – music to investors' ears who had worried about inflation derailing the easing cycle.

​However, there's a contradiction emerging in Fed thinking. Officials simultaneously expect higher inflation down the road while anticipating lower rates this year. This inconsistency suggests the labour market may be weighing more heavily on their minds than previously thought.

​Market shrugs off tariff threats

​What's particularly striking is how markets have responded to Trump's latest tariff salvos. The president announced a 50% tariff on copper imports and threatened Brazil with similar duties, yet stocks barely flinched. Analysts are describing investors as "desensitised" to trade war headlines, with many betting that negotiations will ultimately defuse tensions.

​This represents a marked shift from earlier reactions to tariff announcements. Markets seem to have adopted a "TACO" approach – Trump Always Chickens Out – suggesting traders believe the bark is worse than the bite.

​Bitcoin joins the record-breaking party

​Adding to the celebratory mood, Bitcoin soared to fresh record highs around $111,085.00, cementing the cryptocurrency's remarkable run alongside traditional risk assets. The digital asset's strength came despite Trump's tariff threats, suggesting crypto markets are following equities in their newfound resilience to trade war headlines.

​Asian markets follow suit

​The optimism carried over to Asian markets, with regional indices posting modest gains despite the tariff concerns. The US dollar weakened broadly, reflecting the risk-on sentiment that has gripped global markets.

​For now, the combination of AI euphoria, rate cut expectations, and tariff desensitisation appears to be keeping risk appetite intact. But with earnings season approaching and trade negotiations ongoing, markets remain at the mercy of headlines that could shift sentiment quickly.