Wall Street Rallies as Nvidia Tops $5T Ahead of Fed Decision/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Nvidia became the first publicly traded U.S. company to reach a $5 trillion valuation on Wednesday, boosting markets ahead of a major interest rate decision from the Federal Reserve. Stocks rallied across the board, with investors optimistic about another rate cut. Wall Street also reacted to key earnings reports and global economic developments.
Nvidia Tops $5 Trillion Quick Looks
- Nvidia climbs 4.4%, becoming first $5 trillion U.S. company.
- S&P 500, Dow, and Nasdaq all hit new highs.
- Wall Street awaits Fed’s interest rate announcement this afternoon.
- Markets expect a second rate cut this year.
- Earnings from Caterpillar and Teradyne beat expectations.
- Fiserv plunges 42.6% after slashing forecast, restructuring leadership.
- Mondelez drops amid cocoa price pressures, despite beating earnings.
- Treasury yields steady at 3.99% as bond market holds.
- Asian markets surge after Trump visits Japan and South Korea.
- Investors watch for signs of further Fed cuts in December.
Deep Look: Nvidia Reaches $5 Trillion as Wall Street Focuses on Federal Reserve Rate Decision
NEW YORK — October 29, 2025 — Wall Street entered Wednesday in record-setting territory, lifted by a surge in Nvidia’s stock price, which propelled the AI chipmaker to an unprecedented $5 trillion market valuation. It’s a historic moment for Nvidia — and a bullish signal for tech — as investors await a major announcement from the Federal Reserve later today regarding the direction of interest rates.
The S&P 500 climbed 0.3% in early trading, the Dow Jones Industrial Average rose by 231 points (0.5%), and the Nasdaq added 0.6%, with all three major indexes continuing to set fresh all-time highs.
Nvidia Makes Wall Street History
Nvidia stock jumped 4.4% Wednesday morning, pushing its market capitalization above $5 trillion — a first for any U.S. company. The rapid ascent comes just three months after the company broke the $4 trillion barrier, fueled by extraordinary demand for its chips used in artificial intelligence, data centers, and advanced computing systems.
Nvidia’s momentum remains unmatched, and its valuation now exceeds the GDP of some of the world’s largest economies, including the UK and Japan.
Federal Reserve Rate Cut Expected
Markets are closely watching the Federal Reserve’s upcoming announcement, with expectations high for a second interest rate cut this year. The Fed’s decision, due this afternoon, is widely seen as an effort to counteract a cooling job market and persistent inflation concerns.
What’s more important than the cut itself is the Fed’s forward guidance — whether Chair Jerome Powell signals additional rate reductions in December or early 2026. Wall Street is betting on a dovish tone to help sustain market growth.
The bond market showed little movement ahead of the announcement. The 10-year Treasury yield held steady at 3.99%, a steep drop from earlier this year when it neared 4.80%.
However, the Fed continues to signal caution. If inflation begins to rise again, the central bank may pause further rate cuts, potentially rattling markets.
Adding complexity is the ongoing U.S. government shutdown, which has delayed key economic data typically used by the Fed to guide monetary policy decisions.
Strong Corporate Earnings, Mixed Results
Beyond Nvidia, earnings season continued with several major companies reporting results:
- Caterpillar soared 12% after beating analyst estimates on both profit and revenue. CEO Joe Creed highlighted “resilient demand” for machinery and equipment despite a challenging global environment.
- Teradyne surged 14.6%, driven by strong AI-related demand for its automated testing and robotics systems. CEO Greg Smith noted robust interest from the AI sector continues to boost revenue.
- Fiserv cratered by 42.6% after posting weaker-than-expected profits, cutting its full-year forecast, and announcing a major leadership shake-up. The drop marked its worst trading day since becoming publicly listed in 1986.
- Mondelez International fell 2.8%, as inflation in cocoa prices continues to pressure margins despite stronger-than-expected earnings. The Oreo and Toblerone maker expects difficult pricing environments to persist in some global markets.
Global Markets Respond to Asia Diplomacy
Stock markets in Asia rallied following President Donald Trump’s meetings with regional leaders during his visits to Japan and South Korea. Tokyo’s Nikkei 225 jumped 2.2%, reaching another record, while Seoul’s Kospi climbed 1.8%, also hitting an all-time high.
In Shanghai, markets rose 0.7% ahead of a much-anticipated meeting between Trump and Chinese President Xi Jinping. Investors remain alert to the ongoing U.S.-China trade standoff, which has seen tariffs and technology restrictions escalate from both sides.
Washington’s recent curbs on tech exports and China’s retaliatory limits on rare earth shipments have fueled uncertainty — and made tech stocks like Nvidia even more central to U.S. economic strategy.
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