Stocks Erase 2025 Drop as Nvidia Drives Tech Rally – US Market Wrap

A rally in the world’s largest technology companies erased the stock market’s year-end losses on bets that tensions over Donald Trump’s trade war are easing, with inflation data showing limited impacts so far.

Equities rose to their highest level since February, when the S&P 500 reached an all-time high. The gauge was up nearly 1%, with chipmakers leading the charge after Nvidia and Advanced Micro Devices announced that they would supply semiconductors to Saudi firm Humain for a massive data-center project. Treasuries lost ground on speculation that the Federal Reserve will remain on hold as it assesses the potential impact of tariffs. The dollar fell.

Trade tensions have eased, and earnings have been surprisingly positive, sparking optimism after a period of doubt about Corporate America’s ability to meet high profit expectations. The stock market is “gonna go a lot higher,” Trump said, citing a “explosion of investment and jobs” as Saudi Arabia commits to investing $1 trillion in the United States.

The Trump administration intends to overhaul regulations governing the export of semiconductors used in artificial intelligence, abandoning a Biden-era approach that had sparked strong opposition from America’s allies. The United States is also considering a deal that would allow the United Arab Emirates to import more than a million advanced Nvidia chips, according to people familiar with the matter.