Major U.S. stock indices closed higher on Wednesday, with Bitcoin approaching the $70,000 mark. Fitch Ratings indicated that the U.S. effective tax rate decreased to 9.4% after a 10% comprehensive tariff replaced tariffs levied under the International Emergency Economic Powers Act.
U.S. Markets: At the close, the Dow Jones Industrial Average rose by 307.65 points, or 0.63%, to 49,482.15. The Nasdaq Composite increased by 288.40 points, or 1.26%, to 23,152.08. The S&P 500 gained 56.06 points, or 0.81%, closing at 6,946.13. NVIDIA (NVDA.US) advanced 1.4% and saw its after-hours trading rise more than 3% following its earnings report. Circle (CRCL.US) surged 35%, and Western Digital (WDC.US) climbed 7.5%. The Nasdaq Golden Dragon China Index declined 0.48%, with XPeng (XPEV.US) falling nearly 3%.
European Markets: Germany's DAX 30 index increased by 153.73 points, or 0.61%, to 25,175.38. The UK's FTSE 100 rose by 115.21 points, or 1.08%, to 10,795.80. France's CAC 40 gained 39.86 points, or 0.47%, reaching 8,559.07. The Euro Stoxx 50 advanced by 56.76 points, or 0.93%, to 6,173.36. Spain's IBEX 35 jumped 255.81 points, or 1.41%, to 18,445.31. Italy's FTSE MIB increased by 488.78 points, or 1.05%, to 47,140.50.
Cryptocurrencies: Bitcoin surged nearly 8% to $69,141.45. Ethereum rose over 14% to $2,111.69.
U.S. Dollar Index: The index, which measures the dollar against a basket of six major currencies, fell 0.15% to settle at 97.700. By the end of New York forex trading, one euro was worth $1.1805, up from $1.1779 the previous day. One pound sterling traded at $1.3551, higher than $1.3502. One dollar bought 156.44 Japanese yen, up from 155.78. It traded at 0.7729 Swiss francs, down from 0.7735, and 1.3678 Canadian dollars, down from 1.3704. Against the Swedish krona, the dollar was at 9.0219, lower than 9.0449.
Crude Oil: The price of West Texas Intermediate crude for April delivery fell 21 cents, or 0.32%, to settle at $65.42 per barrel. Brent crude for April delivery rose 8 cents, or 0.11%, to close at $70.85 per barrel.
Metals: Spot gold increased by 9% to $5,168.92 per ounce. Spot silver was priced at $89.245 per ounce.
Macro News: The New York Fed reported that a decline in the attractiveness of government bonds has led to a rise in the "natural rate of interest." Researchers stated that this key global rate has seen a "statistically significant increase" since 2019, rising by about 1 percentage point in the U.S. and other advanced economies. Reduced investor appetite for government bonds as safe assets may account for half of this increase. Although theoretical, the natural rate is a crucial reference for central banks setting market rates.
Atlanta Fed President Raphael Bostic stated that the Fed's independence has been eroded. He noted that fissures between the Fed and the White House have begun to undermine public trust in the central bank's political neutrality. This was one of the most direct warnings from a senior official about the consequences of the Trump administration's tough stance toward the Fed.
Fed Governor Christopher Waller emphasized that inflation remains a key problem for the Fed, though he did not specify how monetary policy should respond. He acknowledged that work remains on inflation while the employment situation is fairly good. Waller had previously been skeptical of last year's rate cuts.
Media reports indicated that major tech companies will pledge to build their own power supplies for new data centers to control energy costs. Executives from companies including Amazon, Google, Meta, Microsoft, xAI, Oracle, and OpenAI are scheduled to meet with President Trump in March to sign a "Power Price Protection Pledge," ensuring U.S. households are not burdened with higher electricity bills.
The EU believes the new Trump tariff plan violates agreements. The policy would subject approximately €42 billion of EU exports to tariffs above the 15% ceiling agreed in the EU-U.S. trade deal. Goods affected include cheese, butter, certain agricultural products, plastics, textiles, and chemicals. An EU Commission spokesperson reiterated that EU products must receive the most competitive treatment without tariffs exceeding agreed limits. About 7% of EU exports would face tariffs above the 15% cap under the new system.
Individual Stock News: NVIDIA (NVDA.US) reported strong Q4 FY2026 results, with revenue of $681 billion and data center revenue of $623 billion, both exceeding market expectations. The company provided an optimistic revenue forecast for Q1 FY2027, projecting approximately $780 billion in sales, compared to Wall Street's average estimate of $726 billion. CEO Jensen Huang stated that customers are racing to invest in AI computing. The positive outlook helped alleviate concerns about an AI investment bubble. Following the report, NVIDIA's stock rose more than 3% in after-hours trading.
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