Nasdaq Hits Record as Nvidia Surpasses $4T, Fed Signals Possible Cuts

The Nasdaq closed at an all-time high Wednesday, driven by a surge in tech stocks and investor enthusiasm over Nvidia's historic rally past a $4 trillion market cap. The Nasdaq Composite jumped 0.95% to 20,611.34, while the Dow Jones gained 217 points (0.5%) and the S&P 500 rose 0.6%.

Nvidia (NASDAQ:NVDA) rose 2%, topping $4T in market value for the first time as investor confidence in AI-fueled chip demand surged. Wedbush described the milestone as a pivotal moment for the AI revolution, led by the company’s dominance in the sector. Other tech giants, including Meta (NASDAQ:META), also posted gains.

Federal Reserve minutes from the June meeting revealed a majority of policymakers still expect rate cuts this year, although opinions remain divided. Some members support cuts as early as July, while others argue no easing is needed. The Fed’s wait-and-see approach has drawn criticism from President Donald Trump, who continues to pressure Chair Jerome Powell and is reportedly eyeing Kevin Hassett as a possible replacement.

On the trade front, Trump confirmed a delay to his new tariffs until August 1 and floated a potential 50% tariff on copper imports. This move targets key sectors like vehicle manufacturing and military infrastructure, highlighting the administration’s aggressive stance. Treasury Secretary Scott Bessent claimed tariffs have already generated $100 billion in revenue this year, with expectations to reach $300 billion by year-end.

Meanwhile, Goldman Sachs warned of limited near-term upside in equities, citing stretched valuations and a weakening macroeconomic backdrop. While remaining neutral for the next three months, the firm maintains a bullish 12-month outlook backed by structural growth and policy support.

Investors remain cautious amid geopolitical and monetary uncertainties despite the strong tech-led rally.