Nvidia's $5.5 Trillion Milestone Drives US Markets to New Heights

The S&P 500 and Nasdaq closed at fresh all-time highs on Wednesday, led by a broad technology rally even as hotter-than-expected inflation data tempered sentiment.

Gains were concentrated at the top, as roughly two-thirds of S&P 500 constituents finished the session lower, underscoring the narrow breadth beneath the headline records.

NVIDIA was the standout, surging 2.29% to become the first company in history to reach a $5.5 trillion market capitalisation. CEO Jensen Huang's appearance alongside President Trump and Chinese President Xi Jinping at the Beijing summit lent the stock additional momentum.

Micron Technology also advanced on AI-driven optimism. After the close, Cisco Systems jumped 18% in extended trading following an earnings beat and an AI-focused restructuring that includes approximately 4,000 job cuts.

On the macro front, inflation continued to reassert itself. April's Producer Price Index rose 6.0% year-over-year — the fastest pace since December 2022 — and climbed 1.4% month-over-month, exceeding consensus on both measures.

Core wholesale prices advanced 5.2% annually. The print compounds Tuesday's April CPI reading of 3.7% and a Q1 PCE of 4.5%, stacking a formidable case that inflation remains well above the Fed's 2% target.

The U.S. Senate confirmed Kevin Warsh as the next Federal Reserve Chair. Boston Fed President Susan Collins separately flagged a potential rate hike as a tail risk should inflationary pressures broaden, though she was careful to characterise it as outside her base case.

The 10-year Treasury yield pressed toward 4.5%, and rate-cut expectations for the remainder of the year have largely been priced out ahead of the June 16–17 FOMC meeting.

Asian markets are trading higher today as investors look to a high-stakes meeting between U.S. President Donald Trump and his Chinese counterpart Xi Jinping for clues on the future of U.S.-China ties and global trade.

The Indian rupee weakened for a fourth straight session and plummted to an all-time low of 95.80 per dollar. Despite the government’s move to raise import duties on gold and silver to discourage purchases, the currency remained under pressure amid sustained foreign capital outflows.

Government banned sugar exports with immediate effect until September 30, 2026, or until further orders, as the world’s second-largest sugar producer moved to contain rising domestic prices. The restrictions apply to both raw and white sugar exports, although shipments already in the pipeline will be permitted under specified conditions.

Nifty snapped its four-session losing streak, rising 33 points to close at 23412. The recovery was supported by strong performance in the metal, oil, and gas sectors, despite continued selling pressure in the IT and Auto stocks. The former support near 23800 is now likely to act as resistance on pullbacks, while immediate downside support is seen around 23100.

Indian markets are likely to open higher on strong global cues.