Index Climbs as Nvidia Breaks Records

Major U.S. equities indexes rose Wednesday as AI chipmaker Nvidia (NVDA) became the first company in the world to reach a $4 trillion market capitalization and President Trump released letters to more trading partners outlining tariff rates set to take effect on Aug. 1.

The S&P 500 advanced 0.6%, closing just shy of a new record. The Dow ended the midweek session up 0.5%, while outperformance from the tech sector helped the Nasdaq climbed 0.9% to a record closing high. 

Shares of AES Corp. (AES) skyrocketed 19.8%, leading gains on the S&P 500 following reports that the power generator is exploring a sale. Several major infrastructure investors including BlackRock’s (BLK) Global Infrastructure Partners unit have been evaluating an acquisition of AES amid declines in its share price over the past few years, Bloomberg reported. AES generates energy from a variety of sources, including hydro, wind, and solar, and has signed agreements with multiple tech firms to provide renewable energy for data centers.

Reports of a potential takeover bid also helped lift shares of engineering design software firm PTC Inc. (PTC), which surged 17.7%. Bloomberg indicated that rival Autodesk (ADSK), which competes with PTC in the computer-aided design and product lifecycle management markets, is evaluating a potential acquisition. Autodesk shares slipped 2.4%.

Major cryptocurrencies moved higher, with the price of Bitcoin hitting a record high around $112,000 amid optimism about a crypto-friendly regulatory environment in the U.S. under the Trump administration. Shares of Coinbase Global (COIN), operator of the largest crypto exchange in the U.S., advanced 5.4%, adding to a string of recent gains leaving the stock up over 50% since the start of the year.

Newly released minutes from the latest Federal Open Market Committee meeting showed that policymakers believe tariff-related inflationary pressure will be moderate and still anticipate interest-rate cuts in 2025. The projection for potential Fed rate cuts and the likelihood of lower mortgage rates helped lift housing-related stocks. D.R. Horton (DHI) shares gained 5.4% Shares of fellow home builders Lennar (LEN) and PulteGroup (PHM), as well as shares of residential construction supplier Builders FirstSource (BLDR), all added around 4.5%.

Boeing (BA) shares climbed 3.7%, a day after the company reported it delivered 150 commercial jets in the second quarter, up from 92 in the year-ago period and ahead of analysts’ forecasts. The aviation giant also topped expectations for quarterly deliveries of helicopters and jets in its defense segment.

Shares of data analytics firm Fair Isaac (FICO) logged the weakest performance in the S&P 500 for the second straight session, dropping 6.5% Wednesday. The two-day slide came after Bill Pulte, director of the Federal Housing Finance Agency, indicated that lenders will be able to evaluate the creditworthiness of mortgage borrowers using the VantageScore system, a competitor to Fair Isaac’s FICO credit scores.

Hershey (HSY) shares fell 4.7% after the chocolate maker named a new CEO. The confectionery company announced that Kirk Tanner, who currently serves as the top executive for fast-food giant Wendy’s (WEN), will take the helm at Hershey starting next month. Tanner is slated to replace retiring Hershey CEO Michele Buck.

Rothschild & Co Redburn analysts downgraded Monster Beverage (MNST) stock to “neutral” from “buy,” suggesting that tariffs on aluminum imports could weigh on the performance of the energy drink maker. Monster Beverage shares sank 3.3%.