Nvidia Hits $4 Trillion as Stock Market Rallies on Tech Momentum, Tariff Bets

Markets Rally on Tech Surge, Tariff Fears Muted by Deal Hopes

The S&P 500 rose 0.33% to 6,245.82, while the Nasdaq Composite jumped 0.6% to a record 20,541.77, extending a rally that has delivered nearly 90% gains since ChatGPT launched in late 2022. The Dow Jones Industrial Average added 0.2%, led by strength in technology shares and investor optimism that President Donald Trump's tariff threats could be negotiated down.

NVIDIA (NVDA) Sets Global Market Cap Record, Surpasses $4 Trillion

NVIDIA Corp (NASDAQ:NVDA) surged over 2% to $163.35, making history as the first public company ever to reach a $4 trillion market cap. Its momentum was driven by sovereign AI infrastructure demand, with Citi noting the company has visibility into "tens of gigawatts" of future buildouts. Nvidia now stands as the most valuable firm globally, surpassing even Apple (NASDAQ:AAPL)'s prior record of $3.91 trillion.

Nasdaq's 90% Surge Since AI Boom Reflects Shift in Market Drivers

The Nasdaq Composite has soared 90% since the introduction of ChatGPT, cementing AI as a long-term growth driver. Gains were led by NVDA, Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), and Meta Platforms (NASDAQ:META). This AI-driven rally has compensated for recent volatility tied to macro risks like tariffs and inflation.

Trump's Tariff Barrage: 50% Copper Duty, 200% Pharma Threat

Markets absorbed fresh trade threats from Trump, including a 50% tariff on copper imports and a possible 200% levy on foreign pharmaceuticals. Despite these announcements, investors appeared to discount the impact, interpreting them as bargaining chips rather than certainties. The U.S. COMEX copper futures premium spiked 138% over London prices to $2,600/ton following the announcement.

Freeport-McMoRan (NYSE:FCX) and Southern Copper (NYSE:SCCO) in Focus on Copper Trade Shifts

FCX and SCCO shares initially surged on tariff news but later trimmed gains as copper prices retreated 4.2% to $5.45/lb. Goldman Sachs noted traders are now aggressively front-running copper shipments before the tariffs take effect, pricing in a likely 40% effective rate by December.

AES Corp (NYSE:AES) Soars on M&A Buzz, BlackRock Eyes Renewable Giant

AES Corp jumped over 16% after reports of a potential buyout by BlackRock’s infrastructure arm. The utility, down nearly 50% from its 2023 highs, is viewed as a strategic target due to its data center-linked renewable assets. AES supplies clean power to major AI-focused hyperscalers.

Merck (NYSE:MRK) Buys Verona Pharma (NASDAQ:VRNA) in $10B Deal

Merck agreed to acquire Verona Pharma for $107/share, a 23% premium, to bolster its respiratory pipeline as Keytruda nears patent expiration. Verona’s Ohtuvayre, approved for COPD, complements Merck’s existing portfolio. VRNA stock spiked 20%, while MRK gained 2.7%.

UnitedHealth (NYSE:UNH) Under DOJ Probe, Stock Drops 3%

UnitedHealth shares slipped nearly 3% after the DOJ began questioning former employees over alleged manipulation of Medicare billing. Investigators are probing whether the company incentivized high-value diagnoses to maximize government payments.

T-Mobile (NASDAQ:TMUS) Downgraded, Faces Headwinds on CapEx and Tax Impact

T-Mobile was cut to "underweight" by KeyBanc, citing limited upside, increased capital expenditure, and reduced tax advantages. The stock fell 1.7% to $232.04, with analysts projecting downside to $200 per share.

Fed in Focus as Rate Cut Debate Heats Up

Piper Sandler argued Wednesday that inflation fears are overstated and that rate cuts are justified. The firm said lower rates would stimulate broader economic activity and corporate earnings without triggering another inflation cycle. The Fed minutes from June are awaited for clues on how divided officials remain.

IPO & Insider Flow: Bezos Sells $666M in AMZN, Indian IPOs Heat Up

Jeff Bezos sold 3 million Amazon (NASDAQ:AMZN) shares worth $665.8M, part of his ongoing divestiture plan. He remains AMZN's largest shareholder with $200B in equity. Meanwhile, India’s IPO market saw a 3x oversubscription in Travel Food Services, while Adani Enterprises (NSE:ADANIENT) raised $116.7M via bonds.

MRF Ltd (NSE:MRF) Hits ₹1.5 Lakh, Caution Lingers Despite Rally

India's most expensive stock, MRF, surged past ₹1.5 lakh per share, hitting a 52-week high after a strong 31% YoY profit rise. Yet analysts warn the stock is overvalued with a consensus 'Sell' rating, pointing to an 11% downside.

Vedanta (NSE:VEDL) Hit by Short Seller Allegations, Shares Fall 7.7%

Vedanta plunged after U.S. short-seller Viceroy Research accused its parent of operating a Ponzi-like scheme. The report cited forced dividends and inflated assets. Vedanta denied all allegations, calling the claims malicious and misleading.

Verdict: BUY NVDA, HOLD FCX, SELL TMUS, HOLD MRK, AVOID VEDL

• NVIDIA (NVDA) is a BUY with sustained growth visibility, sovereign AI tailwinds, and $4T valuation momentum.

• Freeport-McMoRan (FCX) remains a HOLD amid tariff-induced volatility, though long-term copper demand is bullish.

• T-Mobile (TMUS) is a SELL as margin compression and tax headwinds diminish its premium valuation.

• Merck (MRK) is a HOLD, bolstered by smart M&A but with limited short-term upside.

• Vedanta (VEDL) is a VOID/Avoid, pending clarity on fraud claims.

That's TradingNEWS