Markets rise as tariff threats ease and Nasdaq closes at record with gains from Microsoft and Meta
On Wednesday, Nvidia briefly became the first company to surpass a US$4tn market valuation, as renewed momentum in tech stocks lifted Wall Street and eased investor concerns over new US tariffs.
According to CNBC, Nvidia shares rose 1.8 percent and briefly traded above US$164, up from about US$14 at the start of 2023, pushing its market cap beyond the US$4tn mark.
The company’s surge also supported a broader tech rally, with Microsoft up 1.4 percent, Meta gaining 1.7 percent, and Alphabet adding 1.3 percent.
Amazon climbed 1.4 percent following the launch of its extended four-day Prime Day event.
The rally helped push the Nasdaq Composite up 0.94 percent to close at a record 20,611.34, while the S&P 500 advanced 0.61 percent to 6,263.26.
The Dow Jones Industrial Average rose 217.54 points, or 0.49 percent, to 44,458.30.
Canadian markets also gained, with the S&P/TSX Composite Index rising 68.75 points to close at 26,972.32, supported by strength in the basic materials sector, as reported by BNN Bloomberg.
The gains came as markets digested US President Donald Trump’s latest tariff measures.
According to CNBC, Trump sent letters Wednesday setting new US tariff rates on goods from at least six additional countries, including Iraq and the Philippines.
These followed letters earlier this week sent to leaders of 14 countries, such as South Korea and Japan.
The new tariffs, ranging from 20 percent to 40 percent, are scheduled to take effect August 1.
As per BNN Bloomberg, Trump also announced a 50 percent tariff on copper imports—matching rates on steel and aluminum—and suggested he would introduce a 200 percent tariff on imported pharmaceutical drugs within the next 12 to 18 months.
These policy changes follow only two new trade deals since April, one with the United Kingdom and one with Vietnam.
Despite the ongoing tariff threats, market participants remained unfazed.
Ross Mayfield, investment strategist at Baird, told CNBC that investors are “shrugging these tariff threats off and presuming that there is room for deals and negotiations to be made.”
He added that extending the tariff deadlines indicates “a deal-making appetite” that markets are responding to.
Jay Hatfield, CEO of Infrastructure Capital Advisors, told BNN Bloomberg that “most people are tired of tariff news and they’re starting to realize it just doesn’t matter much.”
Hatfield added that earnings expectations remain solid, and the market appears to agree.
According to FactSet data cited by BNN Bloomberg, analysts project five percent annual growth in second-quarter earnings for S&P 500 companies, the slowest pace since the final quarter of 2023.
Delta Air Lines will lead off earnings season on Thursday, with analysts anticipating a year-over-year decline in profit, as major US airlines scale back forecasts due to tariff-related economic uncertainty.
Outside of trade headlines, pharmaceutical sector activity was also in focus.
As per BNN Bloomberg, Merck announced plans to acquire UK-based Verona Pharma for approximately US$10bn.
The deal, pending regulatory and shareholder approval, would give Merck access to Ohtuvayre, Verona’s treatment for chronic obstructive pulmonary disease. Verona shares surged 20.6 percent, while Merck shares gained 2.9 percent following the announcement.
In other market activity, US 10-year Treasury yields eased to 4.34 percent from 4.40 percent. European markets closed broadly higher, while Asia saw a mixed finish.
