Nvidia Surge Lifts Global Stocks Despite Trump’s Tariff Escalation

Nvidia’s brief climb to a $4 trillion valuation continued to support global equities, with Asian stocks rising and European futures pointing higher despite US tariff threats. Wall Street closed higher on Wednesday, with the Nasdaq up 0.95%, the S&P 500 up 0.61%, and the Dow gaining 0.49%. President Trump announced 50% tariffs on copper and Brazilian goods starting August 1, though investors showed limited reaction, expecting possible trade deals with the EU, Japan, and South Korea.

Equities

The FTSE 100 edged up 0.2% on Wednesday as investors weighed US tariff announcements and company news. The gains were limited by a sharp fall in WPP, which dropped 19% after cutting its profit forecast. The advertising group said major clients had pulled back on spending, and new business had slowed significantly in June. This was the steepest single-day drop in WPP’s shares in over 30 years.

Mining stocks also dragged on the index. Glencore fell 2.7% and Anglo American dropped 2.5% as copper prices declined on the London Metal Exchange. Prices in the US rose, widening the transatlantic premium and raising concerns that higher prices could reduce demand. British American Tobacco rose 2% after Jefferies backed the company as its top pick in the global tobacco sector and took a bullish stance on the industry overall.

The FTSE 250 slipped 0.1%. ZIGUP fell 9.4% after posting lower annual profits, while Close Brothers lost 4.2% after announcing plans to restructure its premium finance business to cut costs.

In the US, markets rose across the board. The Nasdaq climbed 0.95% to a record close of 20,611.34, driven by gains in technology shares. The S&P 500 added 0.61%, and the Dow Jones rose 0.49%. Nvidia briefly became the world’s first company to reach a $4 trillion market value during Wednesday’s session. The chipmaker closed up 1.8%, finishing with a valuation just below the milestone at $3.97 trillion. Nvidia continues to benefit from strong demand for AI technologies.

Microsoft rose 1.4% and Amazon gained 1.5%, helping lift the broader market. Boeing jumped 3.7% after Susquehanna raised its price target following a 27% year-on-year increase in aircraft deliveries in June. AES surged 19.8% after Bloomberg reported the utility company was considering a sale.

On the downside, UnitedHealth Group dropped 1.6% after the Wall Street Journal reported that the US Department of Justice was investigating the company over how it used medical staff to support Medicare billing.

Forex & Commodities

The US dollar held steady on Thursday following a slight decline, with the dollar index at 97.404. This came after a dip of 0.2% on Wednesday, when it touched its highest level since 25 June before slipping. US Treasury yields also fell after a well-received 10-year note auction, easing some pressure on the currency. The euro and sterling each rose 0.1%, trading at $1.1735 and $1.3605 respectively. Against the yen, the dollar was unchanged at 146.31, and it also remained flat at 0.7942 Swiss franc.

The Brazilian real fell as much as 2.8% to 5.6047 per dollar overnight, its weakest level in over a month, after President Trump threatened a 50% tariff on Brazilian imports. He linked the move not only to trade policy but also to political developments in Brazil, including the ongoing trial of former president Jair Bolsonaro.

Bitcoin rose 0.3% to $111,062, staying close to its overnight record of $111,988.90, supported by stronger risk sentiment.

Gold edged higher as US bond yields and the dollar softened. Spot gold was up 0.3% at $3,321.68 per ounce. Lower bond yields reduced the opportunity cost of holding bullion, which found technical support as tariffs again dominated headlines. Spot silver was up 0.2% to $36.42, while platinum slipped 0.2% and palladium added 0.3%.

Brent crude was stable at $70.23 a barrel and WTI at $68.37. While Trump’s latest tariff announcements weighed on the economic outlook, oil prices were supported by stronger US gasoline demand and a weaker dollar. The Energy Information Administration reported a 6% weekly rise in gasoline consumption to 9.2 million barrels per day.