Trump Takes Credit as Nvidia Price Surge Pushes Market to Record Highs

New York – Wall Street roared to new record highs this week as Nvidia’s price surge propelled the tech-heavy Nasdaq to fresh peaks, with former President Donald Trump taking credit for what he described as a “Trump effect” driving stocks, tech, and crypto to unprecedented levels.

Nvidia Price Surge Crosses $4 Trillion Milestone

On Wednesday, Nvidia briefly reached a market capitalization of $4 trillion, becoming the first company in the world to touch this milestone, underscoring the semiconductor giant’s dominance in the artificial intelligence revolution. Shares climbed as much as 2.8% to an all-time high of $164.42 before closing up 1.8% at $162.98, bringing its market value to $3.97 trillion.

Source: X

Nvidia’s relentless rally has fueled optimism across Wall Street, with the chipmaker’s meteoric rise driven by soaring demand for high-performance chips critical for AI development, data centers, and emerging technologies. The surge in Nvidia’s valuation highlights its increasing importance as a bellwether for technology and AI investment trends.

Trump Claims “Trump Effect” for Market Boom

Amid this rally, former President Trump took to X (formerly Twitter) to claim credit for the booming market, linking Nvidia’s price surge and record tech gains to his tariff and economic policies. “The Trump Effect is back,” he posted, touting the 47% rise in Nvidia’s stock and the record-breaking rallies across crypto and tech sectors as outcomes of his administration’s strategic actions, including his calls for the Federal Reserve to lower interest rates.

Trump’s statements sparked debate among investors, with supporters crediting his stance on tariffs and monetary policy for bolstering market confidence while critics argue that the rally reflects broader macroeconomic factors and the unstoppable momentum behind AI investment.

Tariff Shockwaves: New Trade Duties Announced

Trump’s renewed calls for aggressive trade protectionism added another layer of complexity to the markets. This week, the former president threatened to impose a 50% import duty on Brazilian goods, the harshest measure yet in his trade playbook. In response, Brazilian President Luiz Inacio Lula da Silva stated that Brazil would invoke its economic reciprocity law, leading to a 2% drop in the iShares MSCI Brazil ETF.

The US has also outlined plans to impose new tariffs on Japan, South Korea, and other countries, with additional duties on imported copper set to begin on August 1. These moves are part of a broader push by Trump to reshape global trade in favor of the US, a strategy he claims is raking in billions in tariff revenue while boosting American manufacturing.

Nasdaq and Microsoft Join the Rally

As Nvidia’s price surge made headlines, the Nasdaq Composite notched another record high, powered by gains in technology and industrial sectors. Microsoft, the second most valuable US company, saw its shares climb 1.4% to close at $503.51, bringing its market capitalization to $3.74 trillion.

The Dow Jones Industrial Average rose 217 points (0.5%), while the S&P 500 edged up 0.2%, with the Nasdaq setting a record soon after markets opened before stabilizing later in the session.

Crypto Booms: Bitcoin Hits Record $118K

While equity markets celebrated Nvidia’s climb, cryptocurrency markets saw a parallel surge. Bitcoin, the world’s largest cryptocurrency, soared 6.14% to hit an all-time high of $118,196, with current prices hovering around $118,112.

The rally comes amid heightened market volatility linked to Trump’s tariff announcements, which many investors believe could drive further crypto adoption as a hedge against macroeconomic uncertainty and potential inflationary pressures.

Past trade conflicts, including Trump’s tariff wars with China, have historically fueled interest in Bitcoin and other digital assets, as investors look to decentralized assets to protect against market disruptions tied to geopolitical tensions.

The AI Race: Why Nvidia’s Price Surge Matters

Nvidia’s record-breaking valuation underscores a broader trend: artificial intelligence is reshaping global markets. The company’s GPUs are at the core of AI development, powering everything from language models to advanced robotics, making Nvidia a central player in the technology race.

Investors are pouring billions into companies linked to AI infrastructure, reflecting confidence in the sector’s transformative potential across industries. Nvidia’s price surge is emblematic of this investor optimism and signals continued bullish sentiment in the tech sector.

Trump’s Messaging Resonates Among Crypto Advocates

Trump’s calls for aggressive economic policies and his framing of the market rally as a “Trump effect” have found resonance among crypto advocates and traders. With Bitcoin’s surge coinciding with Trump’s tariff threats and policy rhetoric, many crypto investors interpret this alignment as a validation of digital assets as a hedge against traditional market volatility.

Prominent voices in the crypto space, including influencers and traders, have pointed to Trump’s statements as indicative of a pro-growth stance that could benefit crypto markets, despite the regulatory uncertainties surrounding digital assets in the US.

Inflation, Rates, and the Trump Effect

Trump has repeatedly argued that his push for lower interest rates and his tariff strategy will maintain economic momentum without triggering inflation. His claims of “no inflation” despite rising market prices have sparked discussions among economists and investors, with some analysts pointing to persistent inflationary pressures that could complicate the Federal Reserve’s policy path.

Nevertheless, Trump’s narrative of strong markets, booming crypto, and AI-driven tech growth is driving optimism among retail and institutional investors alike, positioning him as a central figure in discussions around the US economy and financial markets ahead of the upcoming election cycle.

Looking Ahead: What’s Next for Markets?

The Nvidia price surge, record highs in Bitcoin, and Trump’s economic positioning are setting the stage for a dynamic second half of 2025. With the AI boom in full swing, trade tensions brewing, and crypto markets gaining momentum, investors are closely watching for the next catalysts that could drive further gains.

Analysts predict that Nvidia’s continued dominance in the AI chip space, combined with strong institutional demand for Bitcoin and other digital assets, could sustain upward momentum in both sectors, barring major macroeconomic shocks.

Meanwhile, Trump’s tariff announcements and economic messaging are likely to remain key drivers of market sentiment, shaping expectations around trade, inflation, and monetary policy.

Final Thoughts

The Nvidia price surge to $4 trillion, Bitcoin’s explosive rise to $118K, and record highs across US markets signal a historic phase in the global financial landscape. Whether you credit these gains to Trump’s “tariff play” or the unstoppable advance of AI, one thing is clear: the markets are in the midst of a profound transformation.

As institutional investors, traders, and policymakers navigate these shifts, the convergence of AI, crypto, and geopolitics will continue to shape the narrative. Investors looking to capitalize on this momentum will need to stay informed, agile, and prepared for the volatility that accompanies these historic market movements.

Writer @Ellena

Ellena is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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