US stock markets broke new ground Tuesday, with Nvidia dragging the entire market higher after its GTC event in Washington, D.C., where Cryptopolitan reported it dropped a flood of announcements.
Nvidia’s stock surged 5% and closed at a record high, sending its valuation to $4.89 trillion. That puts the AI chipmaker within reach of becoming the first company ever to be worth more than $5 trillion.
This comes just a few months after Nvidia became the first to finish a trading day above $4 trillion back in July, according to reporting from Yahoo Finance.
The rally wasn’t just Nvidia. It dragged the rest of the tech sector with it. The S&P 500 closed at 6,890.89, up 0.23%.That came after crossing the 6,900 mark for the first time earlier in the day.
The Nasdaq Composite gained 0.80% to finish at 23,827.49. And the Dow added 161.78 points, ending Tuesday at 47,706.37. All three indexes logged all-time intraday and closing highs. The surge came one day before the Federal Reserve announces its next interest rate decision.
Microsoft takes stake in OpenAI, Apple hits $4 trillion
Tuesday’s rally also pushed Microsoft and Apple past $4 trillion in valuation. Microsoft’s gains followed news that it finalized a 27% stake in OpenAI’s for-profit arm. The company’s been funding OpenAI since 2019.
Microsoft’s stock rose about 2% on the day and is now up 6% over the last three months. It will report earnings on Wednesday.
Apple, which ended the day just below $4 trillion, saw gains fueled by stronger sales of the iPhone 17 lineup, which hit stores in September. Apple’s stock has jumped 25% in the past three months. Its fiscal fourth-quarter earnings are due Thursday.
JPMorgan analyst Samik Chatterjee said Monday that “Apple shares are heading into the upcoming earnings print with a greater halo of positivity than any time in the past year.” Samik maintained a buy rating and raised his target to $290 per share.
Apple’s also dodged potential fallout from Trump-era tariffs by relocating major parts of its US-bound supply chain to India and Vietnam. The company has also kept good ties with the White House on domestic manufacturing.
The rest of the so-called “Magnificent Seven” — Amazon, Alphabet, and Meta — are all scheduled to report later this week. These five names now make up about a quarter of the S&P 500’s total weight.
So far, about a third of companies in the index have reported earnings. Of those, 83% beat expectations, according to FactSet. Mike Dickson from Horizon Investments told CNBC it’s been a “fantastic” season so far.
Powell’s next move comes as Trump and Xi prepare to meet
The Federal Reserve is expected to announce a second rate cut for 2025 on Wednesday. But that’s not enough for Wall Street.
Investors want to see Fed Chair Jerome Powell hint at another cut before year-end, likely at the December meeting, as inflation pressures stay mixed and economic data remains shaky.
On top of that, markets were tracking global politics too. Trump is scheduled to meet with Chinese President Xi Jinping on Thursday. On Monday, Trump said he expects both sides to “come away with” a trade agreement.
Talks are expected to touch on China’s restrictions on rare earth exports, soybean purchases from the US, and the future of TikTok.
Trade tensions have been a major overhang, and the fentanyl crisis has now been pulled into the negotiations.
The Wall Street Journal reported Tuesday that the US would consider reducing tariffs on Chinese imports if Beijing cracks down on chemical exports used to manufacture fentanyl.
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