American stocks edge higher as investors await US-EU trade talks outcome

On Wednesday, Wall Street indices closed modestly higher, with the Nasdaq leading the gains after Nvidia’s market valuation surged to $4 trillion. The uptick occurred as investors monitored the ongoing US-EU trade negotiations regarding reciprocal tariffs, Reuters reported.

Although the S&P 500 and Nasdaq indices are still climbing up, uncertainty surrounding potential import restrictions on European goods has limited more substantial gains. 

Market participants are now considering the risk of escalating trade disputes and keeping corporate earnings expectations low. The tech sector showed slight strength, with Nvidia shares rising 1.8% by the close, the news agency commented. 

Despite concerns that Donald Trump’s tariffs could fuel inflation, the S&P 500 index hit record highs last week. However, Chris Zaccarelli of Northlight Asset Management noted that such worries contributed to the Fed’s decision to pause its cycle of rate changing.