Nvidia becomes world’s first US$4 trillion company

Good morning. Here's what happened overnight and what you need to know today.

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1.

No cap: Nvidia became the first company in history to achieve a USD4 trillion ($6.1 trillion) market capitalisation, as it rides a rebound across Wall Street’s technology stocks in recent months. Shares in US-based Nvidia rose 2.8% on Wednesday to a record intraday high of USD164.42, having already risen by over 40% since the beginning of May and are up over 1,000% since the beginning of 2023. Nvidia now accounts for 7.5% of the S&P 500 Index. Nvidia’s momentum dwindled in early 2025, as China’s DeepSeek models spurred concerns that big spending on AI would slow, followed by Trump’s tariff threat in April. By May, however, trade talks progressed and spending commitments from key customers and new deals in the Middle East brought investors back toward risky assets. CEO Jensen Huang also fanned investor appetite with bullish predictions that AI and robotics will fuel trillions of dollars in sales for Nvidia in the future. (FT)(Bloomberg)(Reuters)(CNN)(Capital Brief)

2.

X-tra drama: CEO of Elon Musk's X social media platform, Linda Yaccarino, announced via the platform on Wednesday that she plans to step down from the role. Yaccarino, the first permanent CEO to be hired by Musk after he bought the platform in 2022, has helmed the company (then called Twitter) for two years. Yaccarino did not provide a reason for her departure, nor did she state whether the departure was effective immediately. Yaccarino oversaw a tumultuous period for X, with controversies continuing this week as Musk’s AI chatbot Grok repeatedly praised Adolf Hitler and shared antisemitic rhetoric. A Turkish government minister also said the country was monitoring Grok for its use of “tailored profanity,” which could lead to a ban on the platform. xAI is due to release a new version of its Grok 4 chatbot this afternoon. (Linda Yaccarino X)(Capital Brief)(FT)(Bloomberg)

3.

Trump tariffs: US President Donald Trump issued a new round of tariff letters on Wednesday (Thursday AEST), with duties set to take effect on 1 August unless agreements are reached. Posting on social media, Trump announced a 20% tariff on goods from the Philippines, 30% on Sri Lanka, Algeria, Iraq and Libya, and 25% on Brunei and Moldova. These followed 14 letters earlier in the week, including notifying of 25% tariffs to Japan and South Korea. Speaking at the White House, Trump said the rates were “based on common sense, based on deficit… and raw numbers.” He flagged more letters to come, including a steep rate for Brazil. The EU, the US’s biggest bilateral trading partner, has not received a notice but is in trade talks, with EU trade chief Maros Sefcovic saying a framework deal could be reached “potentially even in the coming days.” (Capital Brief)(WSJ)(Bloomberg)(Reuters)

4.

OpenAI it: OpenAI is close to releasing an AI-powered web browser that will challenge Google Chrome, Reuters reported citing three unnamed sources. The browser was built atop Google's open-source Chromium code and is designed to include a ChatGPT-like native chat interface and enable integration with AI agents that can perform tasks on behalf of users. Two sources told the news agency the browser aims to keep some user interactions within the chat interface instead of clicking through to websites. One source said the product is part of a broader strategy by OpenAI to weave its services across the personal and work lives of consumers. OpenAI has not commented on the report. (Reuters)

5.

Fed minutes: With “considerable uncertainty” over how tariffs will shape inflation, Federal Reserve officials showed they are now “split” on the path for interest rates this year, according to minutes from their 17–18 June meeting. While all policymakers voted to hold rates at 4.25%–4.5%, “most participants” said “some reduction” would likely be appropriate in 2025, though views diverged sharply: ten projected at least two cuts, seven projected none, and two expected one, according to the minutes. Just “a couple” supported a cut as soon as the next meeting in July. The debate comes as President Donald Trump demands steep cuts and continues to call for Fed Chair Jerome Powell’s resignation. (US Fed)(Reuters)(Bloomberg)(NYT)

6.

Pharma hit: CSL has urged the Trump administration to target “specific non-allied countries” that could “weaponise” control over medicine supplies rather than impose a blanket tariff on pharmaceutical imports. In a detailed submission to the US Commerce Department, which has begun reviewing medicine imports in response to requests from the Trump administration, CSL called for exemptions for Australia, Switzerland, the EU and the United Kingdom, according to The Australian Financial Review, which cited the submission. It comes as Trump yesterday flagged import duties on the pharmaceutical industry could reach 200%, potentially affecting over $2 billion in Australian exports, largely CSL’s Melbourne-made goods. Treasurer Jim Chalmers said the government was “urgently seeking more details” and reiterated that Australia’s “Pharmaceutical Benefits Scheme is not something that we’re willing to trade away”. (AFR)

7.

Deeptech Breakthrough: Victoria’s state-owned venture capital fund, Breakthrough Victoria, reduced its workforce by almost 40% over the past two years, the AFR reports. Budget cuts reportedly led to a $90 million annual funding reduction, with projections showing it will receive $1.68 billion over 15 years rather than $2 billion over a decade as initially promised in 2021, the masthead writes. Breakthrough Victoria chief Rod Bristow told the AFR that the layoffs ensure that the VC fund has a “really strong foundation” with $480 million in committed capital. Bristow said that private VC had significantly pulled back from deep tech investing and that Breakthrough Victoria plans to fill that gap. “As a patient capital investor, Breakthrough Victoria plays a critical role in filling this gap to ensure these transformative technologies continue to be funded,” he said. (AFR)

8.

Party crashers: Police raided the headquarters of France’s far-right party National Rally (RN) on Wednesday over alleged campaign finance violations and fraud. RN leader Jordan Bardella said in a post on X that around 20 officers from France’s “financial police brigade” raided RN offices just before 9am local time in Paris, seizing documents and accounting information. He said that two investigating judges accompanied the police and that he did not know the grounds for the raid. Bardella labelled the raid as “a new harassment campaign” and a “serious attack on pluralism”. The operation comes after former party leader and three-time presidential candidate Marine Le Pen and other RN party members were convicted of embezzling around €7 million ($12 million) of EU funds in March, potentially halting her ability to run for office in France’s 2027 elections. Le Pen is appealing the decision. (Jordan Bardella X)(FT)(Politico)(Capital Brief)