Stock Markets Gain on Wednesday as Nvidia Hits New Market Cap
Stocks are high today after elevated trading on Wednesday helped push tech stocks much higher thanks to increasing growth in the AI market.
Quick overview
- The stock market saw gains on Wednesday, with the Dow Jones up 0.49% and the Nasdaq Composite rising by 0.94%.
- Big Tech stocks, particularly Nvidia, led the market surge, with Nvidia achieving a record market cap of $4 trillion.
- Despite fears over impending tariffs that could impact tech companies, the AI market continues to grow rapidly, with significant investments from major firms.
- The positive momentum in the stock market may be at risk if upcoming tariff news proves unfavorable.
As trading closed off Wednesday, the stock market indices marked another day of gains in spite of looming fear over new tariffs for many of the United States’ trade partners.
The Dow Jones closed with a gain of 0.49%, and the Nasdaq Composite finished up by 0.94%. The S&P 500 added 0/61% for an overall positive day that comes soon after President Donald Trump announced he would be sending out multiple tariff letters to countries that the United States does business with. He is not taking the time to negotiate, he says, because there are simply too many countries to contact about his new tariff plans.
Big Tech stocks led the small surge in the market, with Nvidia (NVDA) achieving a significant milestone. The AI chipmaker managed to hit a new market cap of $4 trillion, a first for any company around the world.
Why Are Tech Stocks High?
There is fear and selling pressure surrounding some tech stocks right now because of the impending news about tariffs that investors know is coming either later this week or sometime next week. Those tariffs will tend to hit tech companies the most, but they are not here yet.
Even with that impending problem, tech stocks have taken off recently, and that is partly because of the AI boom. The market for AI technology is growing larger than ever, with China quickly becoming one of the biggest players in this tech niche. Morgan Stanley Research says that core AI tech in China could bring in $140 billion for the country in 2030. The global market for AI technology is at $244 billion right now and growing.
Companies that are at the forefront of this niche are trending now, with Microsoft (MSFT), Alphabet (GOOG), and Meta Platforms (META) all investing heavily in this area. Tesla (TSLA) may become one of the big AI players in the coming years, though, with self-operating humanoid robots like Optimus perhaps hitting markets as early as 2026.
The rapidly rising stock market could come to a halt very soon, though, if tariff news is bad on the coming days. That could cause stocks to deflate quickly and market corrections to eliminate millions of dollars in gains from this week.
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