By Krystal Hur

A big day for Nvidia shares helped power a fresh all-time high for the Nasdaq composite on Wednesday, despite new tariff threats from the Trump administration.

All three major U.S. indexes posted gains after President Trump released new letters setting levies on goods from a half-dozen countries including the Philippines, Libya and Iraq. That followed the prior day's tariff announcements, which included a tax of up to 200% on pharmaceutical imports.

Wednesday was the original deadline for reaching trade deals with Washington, before Trump extended it to Aug. 1, and many investors have begun wagering the White House won't ultimately follow through on its harshest threats.

Traders are now looking ahead to financial reports from major companies due to arrive in coming weeks, hoping for signs that ongoing growth in corporate earnings will help extend the rally that carried stocks from the depths of the tariff meltdown to fresh records.

The Dow Jones Industrial Average rose 0.5%, or about 218 points, to 44458 on Wednesday. The S&P 500 gained 0.6% and the tech-heavy Nasdaq added 0.9%.

"Investors have become accustomed to the tariff news and the volatility, " said Joseph Shaposhnik, founder of Rainwater Equity. "I would expect that to continue."

A 1.8% gain in Nvidia's stock helped boost stocks midafternoon after new tariff developments dampened the rally. The S&P 500 and Dow industrials are both less than 1.3% off their record highs.

Nvidia's climb also made the chip maker briefly the world's first company with a market value of $4 trillion. Wednesday's milestone came barely two years after the Santa Clara, Calif.-based company, led by Chief Executive Jensen Huang, notched a $1 trillion closing valuation for the first time.

Nvidia eventually closed with a market cap of $3.974 trillion, still the highest for any company on record, according to Dow Jones Market Data.

Some trade-sensitive stocks also gained. Williams-Sonoma shares gained 2.7%, Stanley Black & Decker added 1.7% and E.l.f. Beauty added 0.6%. Automakers such as General Motors and Stellantis gained.

A European Union spokesman said Wednesday the bloc was aiming for an outline trade deal within days or weeks, and didn't expect to receive a letter, although Trump has indicated otherwise. Any deal is expected to retain 10% tariffs for most European goods.

The Cboe Volatility Index, or VIX, known as Wall Street's fear gauge because it tracks investors' bets on stock swings over the next 30 days, fell below 16 for the first time since February.

Copper futures retreated 3.6%, losing some ground after Trump's announcement of 50% duties on the metal sent prices to records the day before.

Traders also got a new window into the outlook for monetary policy. Minutes from the Federal Reserve's latest meeting released Wednesday revealed that some central bank officials see no interest-rate cuts for the rest of the year, while others are open to easing rates at the rate-setting committee's next meeting.

Analysts say one reason investors are looking through the tariff chaos is that recent data suggests the economy remains resilient against those already in place. Inflation readings in recent months have also indicated that price increases are trending closer to the Fed's 2% target.

Bond yields extended declines after a U.S. Treasury auction of $39 billion in 10-year notes in the afternoon garnered strong demand. The yield on the 10-year note fell to 4.34% Wednesday, from 4.41% the day before.

"There's a view that's been developing that is getting people more comfortable with the idea that maybe tariffs are OK, and maybe we don't see inflation," said Dave Grecsek, managing director in investment strategy and research at Aspiriant. "It's probably a little premature to come to that conclusion."

Write to Krystal Hur at krystal.hur@wsj.com

(END) Dow Jones Newswires

July 09, 2025 16:49 ET (20:49 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.