Nvidia (NVDA) made history on Wednesday, becoming the first company ever to cross a $5 trillion market capitalization. The stock jumped 3.07% to $207.21, following comments from President Donald Trump hinting at potential easing of China restrictions.
Markets are in wait-and-see mode as investors expect the Fed to deliver a quarter-point rate cut — the first since July. Traders are watching closely for Chair Jerome Powell’s remarks on the pace of future easing.
According to JPMorgan’s chief economist Michael Feroli, Powell will likely “avoid signaling” about December’s meeting.
Markets now price in an 87% chance of another rate cut by year-end.
Industrial giants also impressed. Caterpillar jumped 9.3% on strong demand for construction and mining equipment. Teradyne soared 19% thanks to booming AI testing business. Healthcare giant CVS Health beat expectations, climbing 3.1%, showing resilience despite operational challenges. Meanwhile, Mondelez International fell 3.3%, hit by rising cocoa prices.Major indexes traded near all-time highs. The Dow Jones Industrial Average gained 193 points (0.4%), the S&P 500 added 0.3%, and the Nasdaq Composite rose 0.7%. Despite these gains, analysts note the rally remains concentrated in a few large companies. Broader market participation is still limited.Investors are also reacting to global market trends. Japan’s Nikkei 225 jumped 2.2%, South Korea’s Kospi gained 1.8%, and China’s Shanghai Composite rose 0.7%. Positive signals from international trade and technology demand are boosting confidence. European markets remain mixed, reflecting regional uncertainties.
The Federal Reserve’s interest rate policy is the top focus. Markets expect a possible 25-basis-point rate cut. The 10-year Treasury yield steadied at 3.98%. Traders are weighing the Fed’s guidance on future cuts. Any hesitation could trigger volatility, affecting both tech and industrial sectors.
Even with record highs, risks persist. Gains are narrow and dominated by mega-cap tech stocks. Upcoming earnings reports could surprise investors. Global trade tensions and Fed policy shifts remain critical. Analysts caution that the rally may be fragile if key stocks stumble.
Investors are advised to monitor the Fed announcement closely. Corporate earnings, particularly in AI-driven tech and industrials, will influence momentum. Global economic signals, trade updates, and geopolitical news could swing markets in the short term. Staying informed is key for portfolio decisions.
Overall, the US stock market today shows strong optimism. Tech and industrials are powering the rally. Nvidia leads the charge with a historic milestone. The Fed’s upcoming rate decision remains the central focus. Global markets are supporting gains, but concentrated leadership and looming risks suggest cautious optimism for investors.
US Stock Market Today:
- Dow Jones Industrial Average: +193 points (+0.4%)
- S&P 500: +0.3%
- Nasdaq Composite: +0.7%
Nvidia (NVDA) made history on Wednesday, becoming the first company ever to cross a $5 trillion market capitalization.
The stock jumped 3.07% to $207.21, following comments from President Donald Trump hinting at potential easing of China restrictions.
Trump said he plans to discuss Nvidia’s Blackwell AI processors with Chinese President Xi Jinping during their upcoming meeting.
Investors viewed this as a signal of possible relief for Nvidia’s China sales, lifting sentiment across the AI and semiconductor sectors.
The gains extend Nvidia’s winning streak after a flood of new product announcements at its GTC 2025 event, which drew strong investor enthusiasm for AI infrastructure and chip demand.
The spotlight now shifts to the “Magnificent Seven” as earnings season heats up.
Reports from Alphabet (GOOG), Meta Platforms (META), and Microsoft (MSFT) are due after the bell Wednesday, followed by Apple (AAPL) and Amazon (AMZN) on Thursday.
Investors are focusing on AI-driven revenue growth and data center spending trends. Analysts warn that any weak guidance could pressure the broader market.
Amazon’s Anthropic deal deepens AI race
Amazon (AMZN) announced that Anthropic will deploy 1 million of its custom AI chips by 2025, marking one of the largest AI infrastructure deals to date.
The deal represents billions in potential revenue for Amazon Web Services (AWS), according to Hedgeye analyst Andrew Freedman.
The announcement comes amid rising AI chip competition between Amazon, Google, and Microsoft.
Amazon shares edged 0.81% higher to $231.10, while Alphabet rose less than 1% ahead of its earnings report.
OpenAI–Microsoft deal reshapes AI power balance
In a major industry development, OpenAI’s new for-profit structure and deal with Microsoft have freed it from corporate limitations.
The AI leader, now valued at $500 billion, can raise capital and expand more aggressively — possibly paving the way for a future public listing.
Which stocks are leading today’s rally?
Tech and industrial stocks are taking the spotlight. Large companies are driving most of the gains.
Nvidia, the AI chipmaker, is the main market hero today. The company’s share price jumped nearly 5%, making it the first company to approach a $5 trillion market valuation. This has boosted investor confidence across tech stocks.
Other major gainers include industrial and healthcare companies that exceeded expectations in earnings.
Top performing stocks:
- Nvidia: +4.9%
- Caterpillar: +9.3%
- Teradyne: +19%
- CVS Health: +3.1%
Meanwhile, some companies saw declines. High raw material costs and other pressures affected certain sectors.
Top lagging stocks:
- Mondelez International: -3.3%
- Other small-cap stocks with mixed results
How is the Federal Reserve affecting the market?
The Fed’s interest rate policy is the biggest focus for traders. Markets are pricing in a possible rate cut, which could make borrowing cheaper and encourage investment.
If the Fed signals further cuts, investors expect a continued rally. However, any unexpected statements could cause volatility. Traders are watching the bond market as well for signs of the economy’s strength.
Data points related to Fed influence:
- Expected rate cut: 25 basis points
- 10-year Treasury yield: 3.98%
- Market sentiment: positive but cautious
Investors are carefully weighing whether the Fed will act immediately or maintain a wait-and-see approach. The decision could impact not just tech stocks but all major sectors.
How are global markets performing?
Global markets are also reflecting investor sentiment. Positive news from Japan, South Korea, and China is helping the U.S. markets maintain momentum.
Asian markets are performing well, lifted by optimism in trade discussions and tech demand. European markets, however, show a mixed performance as economic data remains uncertain.
Key global market movements:
- Japan Nikkei 225: +2.2%
- South Korea Kospi: +1.8%
- Shanghai Composite: +0.7%
Global trade updates, especially between the U.S. and China, are closely monitored. Any major developments could influence investor behavior worldwide.
What risks should investors be aware of?
Even with record highs, the market carries risks. Gains are concentrated in a few companies, meaning a sudden drop in mega-cap stocks could affect overall indexes.
Earnings reports over the coming weeks will test market confidence. Companies failing to meet expectations could create volatility.
Other risk factors include geopolitical tensions, inflation concerns, and the Fed’s future guidance. Traders are monitoring these carefully.
Main risks:
- Narrow market gains concentrated in tech
- Earnings surprises from large companies
- Federal Reserve policy and guidance
- Global trade tensions
Investors are advised to stay diversified and not rely solely on the tech surge to drive portfolios.
What should investors watch next?
Market participants are focusing on the Fed announcement and corporate earnings. These events will set the tone for the coming weeks.
Tech stocks, particularly AI-related companies like Nvidia, remain the main driver. Industrial stocks like Caterpillar and Teradyne continue to provide support to the broader market.
Global developments, such as trade agreements and economic data, also remain crucial. Investors should track both domestic and international news closely.
As Wall Street eyes the Fed’s announcement, tech remains the engine of growth.
With Nvidia’s $5 trillion valuation, record-breaking indices, and the AI race intensifying, markets are entering one of their most pivotal weeks of 2025.
Investors will tune in to Powell’s remarks for cues on whether the rate cut cycle continues into December — a decision that could shape the rest of the year’s market rally.
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