Remember when your biggest worry was whether your graphics card could handle the latest video game? Well, Nvidia just casually became 8% of the entire S&P 500. No big deal, right?
Here’s the thing that’s got everyone talking: NVDA hit a $4.47 trillion market cap yesterday, making it the heaviest-weighted stock in S&P 500 history. To put that in perspective, this single company now represents more of the index than some entire countries’ stock markets. It’s like that friend who got really into CrossFit and now deadlifts more than your car weighs.
The technical nerds are having a field day because Nvidia triggered something called a “Golden Cross” back in June – basically when short-term trends cross above long-term ones, which sounds way more mystical than it actually is. Since then, the stock has jumped 19% while the broader market managed a measly 6%. Show-offs.
Meanwhile, Tariffs Are Actually Working (Sort Of)
Plot twist nobody saw coming: U.S. tariff revenue exploded over 300% in July, raking in a record $29.6 billion in one month. That’s putting us on track for $350+ billion annually. Trump’s been floating the idea of ditching income taxes for people making under $200K, but here’s the math reality check – even these massive tariff hauls would only cover about half of what income taxes bring in.
The weirdest part? All this tariff drama isn’t actually causing the inflation everyone was freaking out about. Sure, your car insurance is up 5.3% and hospital bills are still ridiculous (up 5.8%), but that’s not because of trade wars – that’s just regular old “everything costs more” inflation.
Crypto’s Having Its Main Character Moment
While everyone was obsessing over Nvidia, crypto quietly had its best day in months. Bitcoin’s chilling around $120,376 (casual Tuesday, apparently), and Ethereum ETFs just had their biggest day ever with $1 billion flowing in. The Ethereum Trust ETF alone grabbed $640 million – more than some small countries’ entire GDP.
Gold’s also having a moment, up 37% over the past year, because apparently when governments spend $630 billion in a month while only collecting enough taxes to cover 10% of it, people start buying shiny things. Who could have predicted that?
The Fed’s Awkward Position
Here’s where it gets interesting: Fed Chair Jerome Powell was expecting tariff-related inflation to spike, which would have given him cover to keep interest rates high. Instead, tariff inflation is basically a no-show, but core inflation is still running hot in all the wrong places. It’s like preparing for a hurricane and getting a heat wave instead.
This puts the Fed in the awkward position of potentially cutting rates in September, even though your electricity bill is up 5.5% and car repairs cost more than your first car did.
Bottom line: Nvidia’s rewriting the rules of market concentration, tariffs are generating serious cash without the expected inflation drama, and crypto’s having its moment while the Fed tries to figure out what the heck is actually happening with prices. Just another normal day in 2025 markets, folks.