Wall Street Soars: Nvidia Hits $5T, AI Sparks Market Rally

By MD Rubel islam: Global Finance News.   

Updated, 29 October 2025, 8:05 PM (GMT+6)

Wall Street hits record highs as Nvidia’s $5 trillion valuation drives AI-led market rally.

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The main point 

• Wall Street Hits Record Highs The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all reached new record highs.Investor optimism is rising, especially in U.S. equities and the broader stock market.

• Nvidia Reaches $5 Trillion Valuation Nvidia (NVDA.O) has surpassed a $5 trillion market cap for the first time.Its AI chip orders, supercomputers, and data centers are driving the AI-driven economy worldwide.Nvidia’s GPUs are also powering projects related to the U.S.-China trade deal.

• Big Tech Earnings Surpass ExpectationsApple (AAPL.O), Microsoft (MSFT.O), Alphabet (GOOGL.O), and Meta (META.O) recently reported strong earnings results.Positive corporate earnings and profit forecasts fueled market confidence.The S&P 500 tech index and Nasdaq Composite reached new highs.

• Federal Reserve Hints at Interest Rate Cut Fed monetary policy and possible rate cut expectations have energized the market.The Semiconductor index (SOX) and Philadelphia SE Semiconductor index saw gains of over 3%.While the U.S. economy appears stable, risks like government shutdown or quantitative tightening remain.

• AI-Driven Market Rally Continues Semiconductor companies such as Seagate Technology (STX.O), Western Digital (WDC.O), and Sandisk (SNDK.O) are benefiting from growing AI demand.Combined investor optimism, strong stock performance, and rising market cap/value are fueling a sustained market rally.

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Wall St Rises on Trade & Tech Gain

Wall Street Hits Record Highs: Nvidia Reaches $5 Trillion Valuation — A New Milestone for AI and Big Tech

Introduction: Wall Street Makes History

Wall Street has once again made history. The major U.S. stock indices — S&P 500, Dow Jones Industrial Average, and Nasdaq Composite — all reached new record highs.

The driving force behind this surge is Nvidia (NVDA.O), whose market cap has surpassed $5 trillion valuation for the first time.

Investor optimism is rising, especially as the Federal Reserve (Fed) signals a possible interest rate cut. This news has breathed new life into the market. 

Nvidia’s Success: Pioneering a New Era at $5 Trillion Valuation

The Surge of AI and Supercomputing

Artificial intelligence (AI) and supercomputers are now at the center of global technology. Nvidia dominates both sectors. Its AI chip orders have created unprecedented global demand.

Experts say Nvidia is no longer just a semiconductor company but a driving force behind the entire AI economy. Its GPUs are powering supercomputers, data centers, and even projects related to the U.S.-China trade deal.

Big Tech Earnings: Apple to Microsoft — Outstanding Performance Across the Board

Strong Earnings Results

Apple (AAPL.O), Microsoft (MSFT.O), Alphabet (GOOGL.O), and Meta (META.O) — these Big Tech companies have recently reported earnings results that exceeded expectations:

Apple increased profit forecasts due to strong iPhone and Mac sales.

Microsoft saw rapid growth in AI services and its cloud business (Azure).

Alphabet (Google) reported strong gains in advertising revenue.

Meta boosted user engagement through its AI-driven recommendation systems.

These corporate earnings sent a positive signal to the market, pushing the S&P 500 tech index to new highs.

Federal Reserve and Interest Rate Cut: A Ray of Hope

The Federal Reserve (Fed) hinted last week that it may consider an interest rate cut later this year.

This has fueled renewed investor optimism in U.S. equities and the stock market.

The Fed’s accommodative monetary policy also affected the semiconductor index (SOX) and Philadelphia SE Semiconductor index, both of which rose more than 3%.

Rate Cut Expectations and Market Rally

Market analysts suggest that if rate cut expectations materialize, the ongoing market rally could accelerate.

Both market cap and market value are expected to rise, particularly in the tech-heavy Nasdaq Composite.

The U.S. economy appears stable, though risks like government shutdown or quantitative tightening remain. Investors, however, remain optimistic about the future.

Macro and Global Context: U.S.-China Deal and Asia Trip

Discussions on the U.S.-China trade deal and South Korea agreement have also had a positive impact on the markets.

Recent diplomatic communications between Xi Jinping and Donald Trump have reinforced optimism around tech investment and economic stability.

During the Asia trip, remarks by U.S. trade officials indicate that the United States is looking to strengthen its tech dominance further.

Company Performance at a Glance

Company Ticker Recent Trend

Nvidia NVDA.O Reached $5 Trillion Valuation

Apple AAPL.O Strong iPhone demand

Microsoft MSFT.O Growth in Cloud & AI

Alphabet GOOGL.O Strong ad revenue

Meta META.O Increased AI engagement

Boeing BA.N Higher deliveries

Caterpillar CAT.N Increased infrastructure demand

Seagate STX.O Improved storage tech

Western Digital WDC.O Rising NAND chip demand

Sandisk SNDK.O Steady storage growth 

Verizon VZ.N Expanded 5G services

Kraft Heinz KHC.O Higher consumer demand

Mondelez MDLZ.O Strong global snack business

Fiserv FI.N Stable fintech performance

Supporting Context: What’s Happening in the Market

The market is currently experiencing an AI-driven rally.

Investor optimism, corporate earnings, and profit forecasts combined have significantly boosted stock performance.

Seagate Technology (STX.O) and Western Digital (WDC.O) are benefiting from growing AI demand.

Both the S&P 500 and Nasdaq Composite have reached record highs, marking a historic moment in the market.

Analysis: Is Nvidia’s Rise Signaling a New Era for the Tech Sector?

Nvidia’s $5 trillion market cap is more than just a number — it reflects the reality of the AI revolution.

The world is now at a point where semiconductors, AI, and supercomputing are central to the economy.

Market analysts believe that if the Fed rate cut occurs, Big Tech earnings could surge even higher, strengthening the U.S. economy and pushing the stock market to new heights.

Conclusion: This Wall Street Rally is Just the Beginning

Wall Street is entering a new era where AI, tech innovation, and monetary policy together are shaping the future.

Companies like Nvidia, Apple, and Microsoft are at the center of this transformation.

Ifrate cut expectations come true, investor optimism will rise further, and the market rally could sustain for the long term.

Read more details  Nvidia Boosts Wall St to Record Highs