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Stocks rise as Nvidia reaches $4-trillion valuation, euro inch lower

The major stock indexes rose Wednesday, as Nvidia briefly reached a valuation of $4 trillion. Meanwhile, the euro dipped, as the Trump administration was getting closer to an agreement with its largest trading partner, the European Union.

The U.S. president Donald Trump has issued final tariff notifications to seven minor trading partner.

Bitcoin reached a new high of $112,000 on late Wednesday. This was largely due to increased risk appetite and continued institutional demand.

The U.S. stock market rose after the minutes of the Federal Reserve meeting on June 17-18 revealed that only "a few" officials said they believed interest rates could drop as early as this month.

The majority of policymakers are concerned about the inflationary pressure that they expect will come from Trump's use import taxes to reshape international trade.

Trump expanded his trade war on Tuesday, announcing that he would impose an import tariff of 50% on copper. 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 levies up to 200% on pharmaceuticals.

On Wednesday, U.S. Copper Futures increased their premium over the London benchmark.

After Trump warned 14 countries on Monday that they would face a sharply increased tariffs by a new deadline, August 1, more developments in the trade conflict are expected.

Oliver Pursche is a senior vice president with Wealthspire Advisors, based in Westport, Connecticut.

He said that investors aren't paying attention to the noise because they don't believe that tariffs will cause a lot of inflationary pressure or economic disorder. This hasn't been the case.

Nvidia's shares, which are a supporter of the stock, closed the session up 1.8%. The company briefly exceeded a $4 trillion market cap, becoming the first company to do so in the history of the world, before closing at $3.9 billion.

"Whenever you have an event like this in the market - which is a historic event - it's generally good for the overall market. This shows that investors have their eyes on the future. Peter Cardillo is the chief market economist of Spartan Capital Securities, New York. The Dow Jones Industrial Average gained 217.54 points or 0.49% to 44,458.30. The S&P 500 rose 37.74 points or 0.61% to 6,263.26. And the Nasdaq Composite gained 192.87 point, or 0.9%, at 20,611.32.

The MSCI index of global stocks rose by 4.99 points or 0.54% to 924.30. The pan-European STOXX 600 ended up with a 0.78% gain.

EU sources said that the euro fell 0.09%, to $1.171. Investors weighed up the possibility that the EU wouldn't receive a tariff notice and would be able to secure exemptions for the U.S. base rate of 10%.

The dollar index (which measures the greenback versus six major counterparts) is still down over 6% from the day Trump announced his reciprocal tariffs on "Liberation Day", April 2.

The New Zealand dollar rose 0.03% to $0.59, after the central bank of the country left its benchmark interest rate unchanged as expected. It also noted that inflation risks were near-term.

U.S. Treasury Yields dropped after Treasury saw a strong demand for $39 billion in 10-year notes. This suggests that fears about investors leaving the market are unfounded.

The yield on U.S. benchmark 10-year notes fell 7.7 basis points in the last day to 4.34%.

Investors weighed strong U.S. data on gasoline demand and attacks against shipping in the Red Sea to determine oil prices.

Brent crude futures gained 4 cents or 0.06% to settle at $70.19 per barrel. U.S. West Texas Intermediate Crude gained 5 cents or 0.07% to settle at $68,38.

(source: Reuters)