U.S. stocks ended higher on Wednesday, as markets digested fresh tariff threats from U.S. President Donald Trump and celebrated a historic milestone in the tech sector, with Nvidia becoming the first company to briefly surpass the market capitalization level of 4 trillion U.S. dollars.
The Dow Jones Industrial Average rose 217.54 points, or 0.49 percent, to 44,458.3. The Standard and Poor's 500 added 37.74 points, or 0.61 percent, to 6,263.26. The Nasdaq Composite Index increased by 192.87 points, or 0.94 percent, to 20,611.34.
Eight of the 11 primary Standard and Poor's 500 sectors ended in green, with utilities and technology leading the gainers by adding 1.00 percent and 0.94 percent, respectively. Meanwhile, consumer staples and energy led the laggards by losing 0.55 percent and 0.50 percent, respectively.
Technology shares, particularly chipmakers, continued to lead the rally. Nvidia rose 1.8 percent, helping to lift broader indexes, although shares pulled back slightly from intraday highs that briefly propelled its market value above the 4-trillion-dollar mark. Broadcom added 2.24 percent, while Meta Platforms advanced 1.68 percent. Amazon, Alphabet and Microsoft each gained more than 1 percent. Tesla was the only one in "magnificent 7" ticked slightly lower.
The gains came even as Trump intensified his trade offensive, unveiling a new batch of tariff letters aimed at countries including the Philippines, Libya, Algeria and Iraq. The newly announced levies, ranging from 20 percent to 30 percent, add to the growing list of reciprocal tariffs set to take effect on Aug. 1. Trump reiterated that "no extensions will be granted" to trading partners that fail to reach agreements before that deadline, marking the end of the temporary tariff pause initiated in April.
Despite the sharp rhetoric, markets remained resilient, appearing to take the escalation in stride. Meanwhile, investors instead focused on key corporate milestones and clues from the Federal Open Market Committee (FOMC) about the path of interest rates.
Minutes from the Fed's June policy meeting, released Wednesday afternoon, revealed that only "a couple" of officials supported cutting rates as early as this month.
"Most participants assessed that some reduction in the target range for the federal funds rate this year would likely be appropriate," the minutes said, noting that "upward pressure on inflation from tariffs may be temporary or modest, that medium- and longer-term inflation expectations had remained well anchored, or that some weakening of economic activity and labor market conditions could occur."
U.S. stocks close higher as Nvidia reaches milestone
