S&P500 and Nasdaq 100: Tech Stocks Forecast Strong Amid $4T Nvidia Surge

Nvidia Hits $4 Trillion as Markets Shrug Off Trump Tariff Threats

Wall Street is posting modest gains mid-session Wednesday as Nvidia becomes the first company to reach a $4 trillion market cap, while traders display surprising resilience to President Trump’s latest tariff announcements. The tech giant’s 2% surge underscores continued institutional appetite for AI infrastructure plays.

The Dow is up 0.06% to 44,268.92, while the S&P 500 is gaining 0.24% to 6,240.73 and the Nasdaq is climbing 0.55% to 20,530.36.

Can Nvidia Sustain Its AI Infrastructure Dominance?

Nvidia’s historic $4 trillion valuation reflects its stranglehold on AI chip demand, with portfolio managers viewing further upside potential. “Nvidia is sort of the backbone of artificial intelligence infrastructure,” said Robert Pavlik of Dakota Wealth. The milestone comes as enterprise AI spending shows no signs of cooling.

Trump’s 50% Copper Tariffs Meet Market Indifference

Trump escalated trade rhetoric Tuesday, announcing 50% tariffs on copper and threatening levies on semiconductors and pharmaceuticals. However, markets are showing remarkable composure, with analysts noting trader familiarity with Trump’s negotiating tactics.

The August 1 deadline for new tariffs has created a window for diplomatic resolution, with the EU signaling potential trade agreement progress. “The tariff issue continues to be this sort of seesaw,” notes Philip Blancato of Osaic Wealth.

Sectors: Technology and Communication Services Drive Gains

Six of 11 S&P sectors are posting gains, with communication services leading at 1.3% and technology adding 0.44%. The sector rotation is favoring growth names as traders position for continued AI infrastructure spending.

Stocks: AES Corp Surges on Sale Speculation

Individual movers are painting a mixed picture beyond Nvidia’s milestone. AES Corp is jumping 16.6% after Bloomberg reported the power provider is exploring strategic options including a potential sale. Boeing is advancing 4.1% following strong June delivery data.

UnitedHealth Group is slipping 2.4% after the Wall Street Journal reported DOJ investigation into the insurer’s Medicare practices. Advancing issues are outnumbering decliners 1.07-to-1 on the NYSE.

Market Outlook: Bullish Momentum Prevails Despite Trade Headwinds

The market’s ability to absorb tariff threats while driving Nvidia to historic highs signals strong institutional confidence in AI sector fundamentals.

Tech leadership combined with broad market breadth suggests bulls maintain control. September rate cut expectations provide additional tailwinds, making current pullbacks attractive buying opportunities for growth-focused traders.

More Information in our Economic Calendar.