Wall Street Rallies as Nvidia Hits $4 Trillion Despite Tariff Tensions and Trade Turbulence

9 July 2025

photographer: Justin Sullivan/Getty Images

On July 9, a wave of optimism swept through Wall Street as stock markets opened strong, propelled by soaring investor confidence in artificial intelligence and a staggering milestone from chipmaking titan Nvidia. Early gains in the Dow Jones, S&P 500, and Nasdaq reflected a collective shrug in response to President Trump’s latest tariff announcements, including aggressive new duties targeting copper, semiconductors, and pharmaceuticals. The underlying message was clear: markets were choosing to view these escalating trade actions as leverage rather than outright conflict.

Nvidia’s stock rallied roughly 2.2 percent, landing its market capitalization at an unprecedented $4 trillion. This achievement cemented the company’s dominance in the AI-chip sector and served as a rallying point for tech-heavy indexes. On this day, the Nasdaq rose nearly 1 percent, the S&P 500 gained 0.64 percent, and the Dow moved up by approximately 0.65 percent. Tech stocks led the broader ascent, with the sector up 1.2 percent.

Market players seemed to interpret Trump’s tariff threats not as immediate barriers but as strategic negotiation tools. The president revealed plans to slap a 50 percent tariff on copper and hinted at broader tariffs on pharmaceuticals and computer chips, though many believe these measures will be deferred. Analysts pointed out that the deadline for implementation was postponed to August 1, and noted that the tone of political maneuvering, rather than direct confrontation, is keeping risk appetite intact.

This cautious optimism was mirrored in the bond and commodities markets. Treasury yields edged higher while gold prices retreated to their lowest level in a week, reflecting waning demand for traditional safe havens. Meanwhile, the U.S. dollar strengthened against other major currencies as global markets digested the evolving trade landscape.

Investors are not just focused on tariffs; two key reports are also grabbing attention. Pending U.S. jobless claims, due Thursday, will offer another gauge of labor market resilience. More critically, the Federal Reserve’s June meeting minutes are scheduled for release later today, and markets will be scrutinizing these for signals about potential rate cuts. A growing consensus within the Fed suggests a mild easing could come in September, though July appears off the table.

A closer look at individual stocks also provides insight into today’s market narrative. AES Corp surged over 14 percent on rumors of a potential sale, drawing interest from infrastructure investors. UnitedHealth dipped nearly 2 percent amid news of a Justice Department inquiry into its billing practices. Major advertising agencies Interpublic and Omnicom tumbled more than 1.5 percent, a product of lingering concerns following WPP’s earnings warning in London.

Looking ahead, Wall Street is entering a critical phase. Q2 earnings season is on the horizon, bringing with it fresh data amid the trade backdrop. Markets have regained much of their footing since the April tariff shocks when indexes plunged and volatility spiked following initial Trump tariffs but the upcoming weeks will test whether corporate earnings and economic indicators justify current valuations. As one strategist aptly noted, if earnings remain resilient, investors may extend this calm, but any sign of tariff fatigue could quickly reignite market fears.

In the short term, Nvidia’s entry into the $4 trillion club reinvigorates investor confidence and gives markets a sense of direction amidst geopolitical noise. But the evolving trade calculus and a shifting Federal Reserve stance mean investors must stay alert. As both tariffs and central bank moves unfold, the financial world may yet experience another defining moment before summer’s end.