URGENT UPDATE: Wall Street’s main indexes are surging to record highs as tech giant Nvidia becomes the first company to hit a staggering $5 trillion valuation. This landmark achievement comes just as the market anticipates a significant rate cut from the Federal Reserve later today, alongside a wave of tech earnings reports.
Nvidia’s shares skyrocketed 4.7% following CEO Jensen Huang’s announcement of $500 billion in AI chip orders and plans to construct seven supercomputers for the U.S. government. The stock has seen an impressive rise of nearly 50% this year, marking it as a key driver of U.S. equity growth in 2025.
In a notable market performance, the S&P 500 tech index rose 1.4%, and the Philadelphia SE Semiconductor index increased 2.1%. While Meta and Microsoft remained flat, Alphabet gained 0.3% ahead of their earnings reports due after market close.
As of early trading on Wednesday, the Dow Jones Industrial Average was up 0.6%, the S&P 500 increased 0.35%, and the Nasdaq Composite rose 0.66%. These gains highlight strong investor sentiment fueled by optimism around artificial intelligence and favorable earnings momentum.
“While the $5 trillion milestone seems unfathomable in a historic context, it comes in the wake of a company that has managed to outperform on all metrics,”
said Art Hogan, chief market strategist at B Riley Wealth Management.
However, not all stocks participated in the rally. Boeing shares fell 3.0% after the company announced nearly $5 billion in charges related to delays in its 777X jet program. Conversely, Caterpillar shares surged nearly 10% after exceeding third-quarter profit expectations. Seagate Technology also saw a significant rise, with shares up 13.5% following a strong earnings forecast. Meanwhile, Sandisk and Western Digital gained 7.3% and 8.7%, respectively.
In consumer staples, the S&P index dipped 0.9% as Kraft Heinz and Mondelez International both lowered their annual profit forecasts, leading to declines of 2.4% and 4.2%.
According to data compiled by LSEG, nearly 85% of the 222 companies in the S&P 500 that have reported earnings thus far exceeded analyst expectations.
Investors are eagerly awaiting the Federal Reserve’s decision on a rate cut, expected to be 25 basis points, with another cut anticipated in December. This follows a prolonged government shutdown that has obscured key economic data, leaving traders to rely on private surveys and corporate results for insights.
Additionally, U.S. President Donald Trump has kicked off the final leg of his Asia trip, announcing a deal with South Korea and expressing optimism about negotiations with China’s Xi Jinping, set to occur this Thursday in Busan.
As these market dynamics unfold, the focus remains on future earnings reports and the potential end of the Fed’s “quantitative tightening” policy, which has been in place to reduce the central bank’s balance sheet.
The market’s response to these developments is critical, as investors monitor closely for future trends and shifts. Stay tuned for the latest updates as they occur.
