UPDATE: Wall Street’s main indexes are surging to record highs as investors react to Nvidia’s historic achievement of surpassing a $5 trillion valuation. This milestone comes amid anticipation of a Federal Reserve rate cut and a wave of critical earnings reports from major tech companies.
Nvidia’s stock jumped 4.7 percent after CEO Jensen Huang announced a staggering $500 billion in AI chip orders and plans to construct seven supercomputers for the U.S. government. This remarkable growth has propelled Nvidia’s stock up nearly 50 percent in 2025, positioning it as a key driver of U.S. equities.
In a significant move, Apple briefly reached a market capitalization of $4 trillion on Tuesday, while Microsoft continues to trade above that level. Art Hogan, chief market strategist at B Riley Wealth Management, remarked, “While the $5 trillion milestone seems unfathomable historically, it reflects a company that has consistently outperformed on all metrics.”
As of early trading on Wednesday, the Dow Jones Industrial Average rose 0.6 percent, the S&P 500 gained 0.35 percent, and the Nasdaq Composite increased 0.66 percent. The three major indexes have reached record highs recently, fueled by optimism surrounding artificial intelligence, positive earnings momentum, and expectations of imminent rate cuts by the Federal Reserve.
However, not all stocks are thriving. Boeing’s shares fell 3.0 percent after the company revealed a nearly $5 billion charge due to delays in its 777X jet program. Conversely, Caterpillar shares soared nearly 10 percent after surpassing third-quarter profit expectations. In another bright spot, Seagate Technology shares surged 13.5 percent following a forecast for second-quarter earnings that exceeded Wall Street estimates.
As the earnings season progresses, investors are particularly focused on the upcoming results from Meta and Alphabet, which are expected after market close today. The S&P tech index gained 1.4 percent, while the Philadelphia SE Semiconductor index rose 2.1 percent, reflecting the sector’s robust performance.
In a concerning development, Kraft Heinz and Mondelez International lowered their annual profit forecasts, causing their shares to tumble by 2.4 percent and 4.2 percent, respectively. Overall, nearly 85 percent of the 222 companies in the S&P 500 that have reported earnings so far have exceeded analysts’ expectations, according to data compiled by LSEG.
Investors are eagerly awaiting an expected quarter-point rate cut from the Federal Reserve later today, with traders speculating about another potential cut in December. This comes on the heels of a prolonged U.S. government shutdown, which has obscured key economic data. Investors are keen for insights into the Fed’s future rate strategy and any discussions about ending its quantitative tightening policy.
Meanwhile, U.S. President Donald Trump is currently on the last leg of his Asia trip, announcing a deal with South Korea and expressing optimism about upcoming discussions with China’s Xi Jinping. The two leaders are scheduled to meet on Thursday in Busan.
Other notable stock movements include Fiserv, which plummeted 44.3 percent after revising its annual earnings forecasts downward for the second consecutive quarter. As the market reacts to these developments, investors remain vigilant for further updates and trends.
This exciting market activity underscores the rapidly changing landscape of Wall Street, driven by technological advancements and economic policy shifts. Stay tuned for more updates as the situation develops.
