Wall Street Gains Push Nasdaq to Record High

A rise in large technology stocks contributed to a higher market close on Wednesday, with the Nasdaq reaching a record high and offsetting most of Wall Street's earlier losses this week.

The S&P 500 increased by 0.6%, marking its first gain of the week. The index remains near its record set last week following a favorable U.S. jobs report.

The Dow Jones Industrial Average rose by 0.5%. The Nasdaq composite, which includes a significant proportion of technology stocks, closed 0.9% higher. This increase moved the index above the previous record set last Thursday.

Nvidia's share price rose by 1.8%, making it the first public company to surpass $4 trillion in value after its share price briefly exceeded $164. At the beginning of 2023, Nvidia shares were valued at approximately $14 each.

The increase in technology stocks occurred as investors considered recent developments in President Donald Trump's renewed efforts to use the possibility of higher tariffs on imported goods to secure new trade agreements with other countries.

Wednesday was initially set as a deadline by Trump for countries to reach agreements with the U.S. or face higher tariffs. Since April, two trade deals have been announced, one with the United Kingdom and one with Vietnam. The negotiation period has been extended to August 1.

This phase in the administration's trade policy increases the possibility of more significant tariffs, which could impact the global economy. Higher taxes on imported goods may slow economic growth and increase the risk of recession.

On Tuesday, Trump stated he would announce tariffs on pharmaceutical drugs at a rate of approximately 200%. He also indicated plans to sign an executive order imposing a 50% tariff on copper imports, aligning with rates on steel and aluminum.

Copper prices decreased on Wednesday after rising the previous day. Shares of mining company Freeport-McMoRan declined by 1.5%.

Financial markets have experienced fluctuations in recent weeks following the administration's proposed tariff increases in the spring. With the new tariffs scheduled to take effect next month, Wall Street has a period of stability as the next corporate earnings season approaches.

"I think most people are tired of tariff news and they're starting to realize it just doesn't matter much," said Jay Hatfield, CEO of Infrastructure Capital Advisors. "We're pretty bullish about earnings. I think the rest of the market is too."

Analysts predict that companies in the S&P 500 will report a combined 5% annual growth in second-quarter earnings, according to FactSet. This would be the lowest growth rate for the index since the fourth quarter of 2023.

Delta Air Lines will begin the earnings season on Thursday. Most analysts expect the airline's second-quarter profit to decrease compared to the previous year. Delta and other major U.S. carriers have reduced flight schedules and adjusted forecasts this year as consumers reduce travel and other discretionary spending due to uncertainty about the potential impact of tariffs.

Increases in technology and communication services stocks outweighed declines in energy and other sectors on Wednesday.

• Microsoft increased by 1.4%
• Meta gained 1.7%
• Alphabet (Google's parent company) added 1.3%

Amazon rose by 1.4% following the start of Prime Day, which was extended to four days for the first time.

Overall, the S&P 500 rose 37.74 points to 6,263.26. The Dow increased by 217.54 points to 44,458.30, and the Nasdaq gained 192.87 points to close at 20,611.34.

In bond market trading, the yield on the 10-year Treasury decreased to 4.34% from 4.40% on Tuesday.

In international markets, stock indexes closed higher in Europe after mixed results in Asia.

In corporate news, Merck announced plans to acquire Verona Pharma, a U.K. company specializing in respiratory diseases, in a deal valued at approximately $10 billion. If approved by Verona shareholders and U.K. officials, Merck will gain access to Verona's chronic obstructive pulmonary disease medication Ohtuvayre. Verona shares increased by 20.6% following the announcement, while Merck shares rose by 2.9%.