‘Everything Rally’ in Full Swing. What About Tariffs & Earnings?It’s official: we’re witnessing one of those rare, confounding moments when nearly every big risk-on thing is screaming ATH! (All-Time High, for those who haven’t worn out that abbreviation on X this month).
Bitcoin BITSTAMP:BTCUSD blew past $122,000 on Monday — a turbo rally that made anyone who stepped away to brew coffee rethink their life choices.
Meanwhile, Nvidia NASDAQ:NVDA ? It didn’t just approach the $4 trillion milestone — it showed up, took the crown as the world’s most valuable company , and made the Nasdaq Composite NASDAQ:IXIC pop a fresh record close for dessert.
And the S&P 500 SP:SPX ? The broadest slice of US equities did its part too, hitting a record high last week, despite the world’s loudest tariff chatter from Trump 2.0. So, what gives?
💎 Bitcoin: Too Fast to Chart
Let’s start with the fire-breathing dragon. Bitcoin BITSTAMP:BTCUSD rocketed to $122,500 on Monday morning, bruising all those short sellers and juicing up the memes. The OG coin now has a market cap above $2.3 trillion — bigger than most economies, enough to make gold bugs break into cold sweats. (True, it did pare back some of those gains to float at $119,000 Thursday morning.)
What’s fueling it? Institutional FOMO. Forget diamond hands — big money managers, ETF behemoths , and corporates are scooping up every sat they can find.
When you see that, plus macro tailwinds — a weaker dollar, simmering inflation that nudges the Fed toward cuts — the rocket fuel writes itself. But we all know what traders really want to know: is $125,000 next? Short answer: if momentum holds, you bet. Long answer: mind the next Fed move and the tariff chess match.
🎯 Nvidia: From GPUs to GDPs
If you thought Bitcoin’s wild run was the only headline, look again. The real flex this month came from Jensen Huang’s chip juggernaut. Nvidia NASDAQ:NVDA didn’t just break a record — it basically invented a new category for corporate mega-caps.
The world’s biggest semiconductor firm hit the $4 trillion mark — the first company ever to do so. And this isn’t some overnight fad. Back in 2019, Nvidia crossed $100 billion for the first time on the back of crypto mining booms.
Five years later, it’s stacked on 4,000% gains, riding the AI hype like it’s a permanent bull market. Governments, hyperscalers, cloud titans — they’re all shoving billions at Huang’s AI chips.
💻 Nasdaq: AI, Chips, Crypto — Party On
The Nasdaq Composite NASDAQ:IXIC logged yet another record close , up about 7.5% on the year so far.
Just three months ago, this index looked battered — trade war threats, tariff rants, sticky inflation. Who’s doing the heavy lifting? The Magnificent Seven, mostly. But it’s Nvidia’s chart that’s turned this whole index into a de facto AI ETF.
Is it healthy? That depends. As long as earnings season doesn’t break the dream — and there’s no rug-pull from the Fed — traders are letting the momentum do its thing.
🏦 S&P 500: The Record Chaser
What about the S&P 500 SP:SPX — the broadest barometer of America’s corporate muscle? It rose to set its own record high last week before coming down on Friday on renewed tariff jitters.
The Wall Street darling looks less explosive than its tech-packed peer, the Nasdaq. But it’s still up nearly 7% year-to-date — and up 26% from the April dip when tariffs spooked everyone out of their leveraged longs. Now? It’s back in record territory, brushing aside GDP contraction and inflation that won’t quit.
Why? Because the market is forward-looking. Tariffs may sting, but when the Fed hints at cuts and Trump sticks to his MAGA narrative, risk assets catch a bid.
🧨 What About Those Tariffs, Though?
Speaking of tariffs, let’s not pretend they’re not looming. Trump threatened over the weekend to ramp up levies on EU goods to 30% starting August 1 if no new deal emerges. Canada got an earful too: 35% on certain Canadian exports — and Ottawa announced a $21 billion tit-for-tat.
The “pause” on reciprocal tariffs ends in a few weeks. So, is this noise or real risk?
For now, markets are calling the bluff. Investors have tuned out the saber-rattling, choosing to front-run the Fed’s next move instead. If tariffs spark a deeper trade war, stocks may get a reality check. Until then, the melt-up rules.
🔮 What’s Next? Eyes on Earnings
Earnings season is around the corner (be sure to follow the Earnings Calendar ), and you can bet every fund manager is watching Nvidia NASDAQ:NVDA , Microsoft NASDAQ:MSFT , and the rest of the Mag 7 for cracks in the AI gold rush.
If the big names keep printing double-digit revenue growth, investors should be happy. But any hint of deceleration, cautious guidance, or margin pressure could slam the brakes on this record run.
Your turn : Do you see this melt-up stretching into the second half of the year? Or are we due for a rude awakening once the earnings calls roll in? Drop your take below!
