President Donald Trump told the Saudi crowd on Tuesday that the market is still in its infancy. “It’s going to be much higher,” he said.
The stock market and the crypto were both rising, with the Nasdaq 100 rising 1.6% and the S&P 500 index rising 0.72%. Bitcoin has been well over $100,000, showing strength for the second day in a row. That same day, investors’ moods changed as China and the US agreed to temporarily cut tariffs.
https://www.youtube.com/watch?v=wj1qoz3iuce
It was the first time the S&P 500 has finished on the green since February 28th. The crypto market capitalization exceeded $3.5 trillion, the highest since February 2nd. The energy on Wall Street was clear. Nvidia has surged 5.6% after announcing a contract to send 18,000 AI chips to Saudi Arabia. It helped to boost other chip makers. Broadcom jumped almost 5%, while AMD added about 4%.
High-tech stock runs while the Dow sinks
Tech stocks continue to push upwards, but not every corner of the market continues. The Dow Jones industrial average fell 269.67 points (0.64%) as UnitedHealth collapsed 18%.
Despite the Dow’s fall, Apple recorded its profits on the fourth day. It was Amazon’s fifth time, and Goldman Sachs also moved high in five consecutive sessions, with Disney extending its own winning streak to six days.
Futures showed a quiet mood early on Wednesday. S&P 500 futures rose 0.06%, Nasdaq 100 futures rose 0.1%, and Dow futures were flat. However, optimism from Tuesday’s bounce was still visible. Especially after Nvidia’s chip shipping news, Tech once again led the rally.
The company’s plan to distribute thousands of AI chips overseas has sent a strong signal, especially as chip stocks took a central stage during the ups and downs of 2025.
On the crypto front, Gaines coincided with the Wall Street mood. Traders responded to two things: easing trade tensions and new economic data. The Federal Reserve, which we met earlier this month, had warned about the potential for male dogs due to the high tariffs rolled out by Trump in April.
But that concern has been cooled after the US suspends most mutual tariffs for 90 days, trades with the UK and strikes a temporary agreement with China to lower most taxes.
Investor’s eyes inflation and future data
The consumer price index for April rose 2.3% year-on-year. It was under a 2.4% forecast from economists. Core inflation excluding energy and food landed at target at 2.8%. These numbers have calmed the markets that were supported for the hotter.
Treasury yields fell quickly. The 10-year yield fell to 4.468%, above 3 basis points, and the 2-year yield fell by 4%, above 1 basis point.
Deutsche Bank said that inflation data for April does not fully reflect the tariffs on Trump’s release date, and analysts don’t think these effects will be visible until June. “US economists believe the April data is too early for tariffs on the release date to appear in the total,” their memo says.
Meanwhile, Etoro, a trading platform that handles both stocks and crypto, priced the IPO at $52 per share. I plan to list it on Nasdaq under ticker ETOR. The company had pulled the original IPO in March due to tariff concerns, but is now moving forward. Originally, I was aiming for a range of $46-50.
Investors are currently waiting for Thursday when the government releases producer price index and retail sales data. These reports can give another window into how the US economy is absorbing all the moving parts of its US economy: taxes, inflation and changes in global trade transactions.
