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Stocks climb as Nvidia rises to $4-trillion valuation; euro dips vs. dollar

The major stock indexes rose Wednesday, as Nvidia reached a valuation of $4 trillion. Meanwhile, the euro fell against the dollar. This was despite the European Union stating that it would be able to reach an outline trade agreement with the United States within the next few days. U.S. president Donald Trump has promised to deliver more tariff notices against unnamed nations. Trump expanded his trade war on Tuesday by announcing that he would impose an import copper tariff of 50%. This move caused the copper price in the United States to soar and stock prices in America to fall. He said that he will soon introduce pharmaceutical levies up to 200%. The premium of U.S. Copper Futures to the London benchmark grew on Wednesday. Oliver Pursche is a senior vice president with Wealthspire Advisors, based in Westport, Connecticut. "Certainly, President Trump and his administration have shown their willingness to change direction, but what's currently on the table does not necessarily mean that it will remain on the same table tomorrow," he said. Investors aren't paying attention to the noise because they don't believe that tariffs will cause a lot of inflation and economic chaos. This hasn't been the case. Investors will be watching for further developments on Trump's trade dispute in the days to come, after he warned 14 countries that they would face higher tariffs as of a new deadline set at August 1. Artificial intelligence leader Nvidia, the first publicly traded company to achieve this milestone, helped boost U.S. stock prices. The Dow Jones Industrial Average rose by 32.69 points or 0.07% to 44,272.15, while the S&P 500 rose by 10.39 points or 0.16% to 6,235.46, and the Nasdaq Composite gained 82.75 or 0.4% to 20,499.80. The MSCI index of global stocks rose 3.15 points or 0.34% to 922.46. The pan-European STOXX 600 gained 0.68%. The dollar index (which measures the greenback versus a basket including the yen, the euro and other currencies) rose by 0.03% at 97.58. Meanwhile, the euro fell 0.1% to $1.1712. The dollar reached its highest level against the yen in over two weeks, with Japan, which is heavily dependent on exports, being the most far away from a deal between Washington and Washington. The dollar last fell 0.13% against the Japanese yen at 146.36. Investors who are concerned that tariffs may increase inflation and slow the economy will be paying close attention to the minutes of the Federal Reserve's latest meeting, which is due to come out later on Wednesday. U.S. Treasury rates fell, but benchmark 10-year yields were near a two-week-high as investors waited for a $39 billion sale of notes to provide further insight on the demand for longer-dated bonds. The yield of the benchmark 10-year U.S. notes fell 3.6 basis points to 4.381% after hitting 4.435% on June 20, which was its highest level since then. The yield on the benchmark German 10-year bond was 2.637%. U.S. crude oil rose by 0.09%, to $68.38 per barrel. Brent increased to $70.19 a barrel, an increase of 0.06%.

(source: Reuters)