Market Update: Nvidia Hits $4T Market Cap, Merck Acquires Verona Pharma, Q2 Earnings Ahead

Nvidia hits $4T market cap, Merck acquires Verona Pharma, and President Trump's tariffs are set to take place on August 1. Investors are also monitoring Q2 earnings and central bank signals. Gold prices are flat, while oil rose fractionally following yesterday's API crude numbers. Key movers include Nvidia, Merck, Apple, Starbucks, and Penguin Solutions. Oppenheimer upgrades Starbucks to Buy, while Citi downgrades Wynn Resorts to Neutral.

Nvidia Becomes First Company to Reach $4 Trillion Market Cap

Nvidia shares surged more than 2% on Wednesday, topping a $4 trillion market cap for the first time ever [1]. The chipmaker's success can be attributed to the generative AI boom, which has significantly boosted demand for its AI hardware and chips [1]. Despite geopolitical tensions and ongoing chip curbs that have hampered sales to China, Nvidia's stock has experienced a remarkable rally, increasing more than fifteenfold over the last five years [1].

Nvidia's CEO, Jensen Huang, attended a roundtable discussion at the Viva Technology conference in Paris, where he emphasized the company's leadership in creating the graphics processing units that power large language models [1]. Nvidia is now the world's most valuable company, surpassing Microsoft and Apple, both of which hit the $3 trillion mark before Nvidia [1]. The company first passed the $2 trillion mark in February 2024 and surpassed $3 trillion in June [1].

Merck Acquires Verona Pharma for $10 Billion

Merck & Co. (NYSE: MRK) has agreed to acquire Verona Pharma plc (Nasdaq: VRNA) for approximately $10 billion, marking a significant expansion of Merck's pipeline and portfolio of treatments for cardio-pulmonary diseases [3]. The acquisition includes Ohtuvayre, a first-in-class selective dual inhibitor of phosphodiesterase 3 and 4 (PDE3 and PDE4) for the maintenance treatment of chronic obstructive pulmonary disease (COPD) in adult patients [3]. Ohtuvayre, which was approved by the U.S. Food and Drug Administration in June 2024, combines bronchodilator and non-steroidal anti-inflammatory effects [3].

The acquisition aligns with Merck’s science-led business development strategy and is expected to drive near- and long-term growth while delivering value to shareholders [3]. The transaction is subject to approval under the Hart-Scott-Rodino Antitrust Improvements Act and other customary conditions, with a closing expected in the fourth quarter of 2025 [3].

Trump's Tariffs Set for August, Q2 Earnings and Central Bank Signals Awaited

Investors are closely monitoring the upcoming implementation of President Trump's tariffs on August 1, which could have significant implications for various sectors [4]. Additionally, Q2 earnings reports from major corporations and signals from central banks are expected to influence market sentiment in the coming weeks [4].

Key Movers and Analyst Updates

Key movers in the financial markets include Nvidia, Merck, Apple, Starbucks, and Penguin Solutions. Oppenheimer upgraded Starbucks (NASDAQ: SBUX) to Buy, while Citi downgraded Wynn Resorts (NASDAQ: WYNN) to Neutral [4].

Gold and Oil Prices

Gold prices remain flat, while oil rose fractionally following yesterday's API crude numbers [4].

References

[1] https://www.cnbc.com/2025/07/09/nvidia-4-trillion.html
[2] https://www.tweaktown.com/news/106311/nvidia-becomes-first-company-in-the-world-to-hit-4-trillion-market-value/index.html
[3] https://www.merck.com/news/merck-to-acquire-verona-pharma-expanding-its-portfolio-to-include-ohtuvayre-ensifentrine-a-first-in-class-copd-maintenance-treatment-for-adults-and-expected-to-drive-growth-into-the-next-dec/
[4] https://www.merck.com/news/merck-to-acquire-verona-pharma-expanding-its-portfolio-to-include-ohtuvayre-ensifentrine-a-first-in-class-copd-maintenance-treatment-for-adults-and-expected-to-drive-growth-into-the-next-dec/