NVIDIA Crosses $4 Trillion, Nasdaq Hits Record as Bulls Regain Momentum

The stock market opened Tuesday with a burst of optimism, energized by NVIDIA (NVDA) crossing the $4 trillion market cap threshold—a symbolic milestone that underscored continued strength in the AI trade. While early gains met resistance near last week’s highs, buyers regained control by afternoon as Treasury yields dropped, easing concerns about inflation and rate policy.

The 2-year yield fell five basis points to 3.86%, while the 10-year yield declined eight basis points to 4.34%, as investors brushed aside inflationary worries tied to ongoing tariff developments. Instead, markets continued to price in the view that trade tensions would eventually resolve into improved terms without derailing economic growth or triggering policy tightening.

Mega-cap tech once again carried the load, led not just by NVIDIA but also by Broadcom (AVGO +2.24%), which outperformed among the giants. Other key contributors included Meta (+1.68%), Amazon (+1.45%), Alphabet (+1.43%), and Microsoft (+1.39%), the latter bolstered by an upgrade to Outperform at Oppenheimer.

Their combined strength helped the Nasdaq Composite set a new all-time high, while the S&P 500 remained firmly in positive territory throughout the session. Meanwhile, small- and mid-cap stocks continued to play catch-up—the Russell 2000 gained 1.1%, and the S&P Midcap 400 added 0.5%, as lower yields benefited rate-sensitive names.

Market breadth was solid, with advancers outpacing decliners by roughly 8-to-5 on the NYSE and 7-to-4 on the Nasdaq.

At the sector level, utilities (+1.0%) led the way thanks to falling yields, followed closely by information technology (+0.9%), communication services (+0.9%), industrials (+0.7%), and consumer discretionary (+0.7%). The only laggards were consumer staples (-0.6%), energy (-0.5%), and real estate (-0.02%).

In corporate news, Merck (MRK) announced a $10 billion acquisition of Verona Pharma (VRNA +20.6%), pushing both stocks higher. Also of note, the FOMC Minutes from the June 17–18 meeting suggested a stronger bias toward rate cuts later this year, reinforcing the bullish narrative.

With the broader market catching a second wind, investors remain focused on whether this rally can extend beyond the AI-led mega-cap surge and broaden meaningfully into other sectors. So far, today’s price action suggests that rotation—and not just concentration—is finally gaining traction.

Our FTInvest 11 portfolio came under renewed pressure today, once again lagging behind the broader market benchmark. Midway through the session, the index briefly slipped into negative territory, reflecting weakness across several components.

However, the decline was short-lived. The portfolio quickly recovered its footing in the afternoon and managed to close the day with a modest gain of 0.19%, finishing at 795.98. That puts it just 0.13% below its all-time high, underscoring continued resilience even amid uneven intraday sentiment.

While today’s result was not enough to set a new record, the index’s ability to bounce back highlights underlying strength and investor confidence as the new quarter unfolds.