The S&P 500 experienced an uptick on Wednesday, driven by Nvidia achieving a significant milestone, while investors kept a close watch on the most recent tariff developments from President Donald Trump.
The broad market benchmark experienced an increase of 0.61%, concluding the session at 6,263.26, while the Nasdaq Composite saw a rise of 0.94%, achieving a record close of 20,611.34. The Dow Jones Industrial Average increased by 217.54 points, representing a 0.49% rise, concluding at 44,458.30.
Nvidia shares increased by 1.8%, and the chip giant momentarily reached a market capitalization of $4 trillion, marking the first instance of a company achieving this milestone. Other major tech names also experienced gains — including Meta Platforms, Microsoft, and Alphabet — reflecting a renewed interest in the artificial intelligence theme. Traders appeared to have minimized the significance of the most recent tariff-related developments of the week.
On Wednesday, Trump issued letters outlining revised U.S. tariff rates on imports from at least six additional countries, including the Philippines and Iraq. This follows Trump’s recent communication to the leaders of 14 nations, including South Korea and Japan, in which he outlined new duties. The president stated in a Truth Social post that there would be no alterations or extensions regarding the series of duties he announced this week. The newly established tariff rates are positioned between 20% and 40%, with implementation scheduled to commence on August 1.
Yesterday, Trump had announced a 50% tariff on copper imports and suggested that additional sector-specific tariffs may be forthcoming. On Tuesday afternoon, he indicated a potential imposition of tariffs reaching as high as 200% on pharmaceuticals imported into the U.S., while stating that he would allow a timeframe of approximately one to one and a half years before these duties take effect.
“The market is just shrugging these tariff threats off and presuming that there is room for deals and negotiations to be made,” stated Ross Mayfield, investment strategist at Baird, during an interview with CNBC. “The extension of the deadlines to Aug. 1, along with the suggestion that these deadlines could be pushed further, indicates a willingness for negotiation. The market is poised to respond to this sentiment until evidence suggests otherwise.” Mayfield continued: “Because if the counter were true, I don’t think we would be anywhere near all-time highs.”