US stock markets closed higher on Wednesday as Nvidia briefly became the first company to reach a USD 4 trillion market valuation, confirming continued strong demand for hardware used by artificial intelligence applications. The rally in Nvidia shares also lifted sentiment in Asia, where technology stocks led gains on Thursday despite concerns over new US tariffs on Japanese goods. European stock indices ended Wednesday firmly in positive territory with the Euro Stoxx 50 advancing 1.3%. Meanwhile, bitcoin hit a new all-time high just under USD 112,000 due to institutional demand.
US stock markets saw gains on Wednesday as Nvidia became the first company globally to reach a USD 4 trillion market valuation, buoyed by strong demand for artificial intelligence technologies. Its shares closed slightly below this threshold at USD 162.88, gaining 1.8% on the day. Nvidia’s stock has surged over fifteenfold in the past five years, solidifying its position as the global leader in AI hardware manufacturing. The Dow Jones Industrial rose 0.5%, while the Nasdaq 100 hit a record intraday high before closing 0.7% higher. The S&P 500 climbed 0.6% to 6263.26 points.
Asian equities mostly advanced on Thursday, led by gains in technology stocks following Nvidia’s record-breaking valuation. South Korea’s KOSPI outperformed, surging 1.3%, driven by a rally in chipmakers like SK Hynix. Investors were also evaluating the Bank of Korea's decision to maintain its policy rate at a nearly three-year low of 2.5%, reflecting South Korea's economic challenges. Japan’s Nikkei 225 lagged after the US imposed 25% tariffs on Japanese goods, trading down 0.7%. Australia’s S&P/ASX 200 rose 0.6%. Hong Kong’s Hang Seng Index was trading 0.4% higher, while mainland China’s CSI 300 added 0.6%.
US President Donald Trump announced on Wednesday that a 50% tariff on copper imports will take effect on 1 August, citing a national security assessment. Copper prices surged 2.6% following the announcement, extending gains from the previous day when prices rose over 13%. The US, which imports nearly half of its copper, aims to reduce reliance on foreign supplies, though experts caution that domestic production capacity will take years to meet demand. This could lead to short-term shortages and elevated prices, as the tariff is expected to impact industries reliant on copper, including semiconductors and defence systems.
Bitcoin surged to a record high just under USD 112,000 on Wednesday, driven by growing institutional interest, including corporate treasury allocations and exchange-traded funds (ETFs) from major asset managers. Despite these gains, concerns over upcoming US tariffs and profit-taking slightly tempered the rally with bitcoin advancing nearly 2% to trade around USD 111,100 by Thursday morning.
Corporate news in focus: Quarterly figures from Delta Air Lines, Gerresheimer, Swatch, and Tata Consultancy Services.
Economic data in focus: German Harmonized Consumer Price Index (08:00), US weekly initial jobless claims (14:30).
Global economic and market trends at a glance
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Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.