Nvidia’s $4 trillion leap and the tariffs that rattled wall street

2 minutes read

10 July 2025

Nvidia’s $4 trillion leap and the tariffs that rattled wall street

The morning sun cast its usual glow over Wall Street, but the mood was anything but ordinary. Traders huddled around their screens, eyes glued to the numbers flickering in green and red. The world’s financial heart was about to witness a day for the history books, a day when technology, politics, and ambition collided to send ripples across the globe.

The rise of a silicon titan

Nvidia, once a niche chipmaker for gamers, had just done the unthinkable. With a surge in its share price, it became the first company in history to reach a $4 trillion market capitalisation. The news swept through the trading floors like wildfire. The company’s shares soared to an all-time high of $164, driven by relentless demand for artificial intelligence. Investors, hungry for a piece of the future, piled in, making Nvidia the undisputed king of the tech world.

Art Hogan, chief market strategist at B Riley Wealth, captured the sentiment: “It began as a gaming chip producer, then transitioned to a crypto mining chip supplier, and now it has evolved into a provider of AI computing power. It continues to advance and stands out as a clear frontrunner in artificial intelligence”.

The scale of Nvidia’s achievement was staggering. In just over a year, it had tripled its valuation, outpacing even Apple and Microsoft. “Companies are shifting their asset spend in the direction of AI and it’s pretty much the future of technology,” said Robert Pavlik, senior portfolio manager at Dakota Wealth in New York. The Nasdaq Composite followed suit, closing at a record high as tech stocks led the charge. The rally wasn’t just about numbers; it was about belief, a collective conviction that AI would shape the next decade. Graph showing Nvidia's stock price from January to July 2025

Tariffs, turbulence, and the next chapter

But just as the market basked in the glow of tech’s triumph, a chill swept in from Washington. President Trump announced sweeping new tariffs, targeting goods from six more countries and threatening a 50% levy on copper imports. The move sparked immediate uncertainty. Investors recalled the last round of tariffs and the havoc they wrought.

Financial experts were quick to weigh in. Thomas Shohfi, associate professor of finance at Wayne State University, warned, “It’s going to be highly inflationary, it’s going to be a big dent in the consumers’ budget. The market is rife with fear. They don’t know how bad a recession could be, how badly this will damage the economy, how bad it will damage the dollar”. Stash Graham, managing director at Graham Capital Wealth Management, added, “Tariffs could set off a negative feedback loop in the stock market. As consumer spending contracts and manufacturing orders decline, falling profits could lead to lower share prices and a diminished wealth effect”.

Yet, the market’s resilience shone through. Despite the shock, the S&P 500 and Dow Jones managed gains, buoyed by the momentum from tech. The lesson? Wall Street thrives on both innovation and uncertainty. As the earnings season looms, all eyes are on the next twist in this unfolding drama.

Nvidia’s $4 trillion leap and the tariff tremors are reminders that the market’s story is never static. It’s a tale of ambition, risk, and relentless change, one that keeps us all watching, day after day.

Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.