Daily summary: Nvidia tests all-time high with $3.74 trillion market cap 🎯

Wall Street indices are testing historic highs, supported by the de-escalation of conflict in the Middle East, though markets appear to be awaiting a new bullish catalyst for a clear breakout.

The gains are mainly driven by Big Tech stocks, which remain firmly in the green, in contrast to smaller companies.

Nvidia is up 3.72% to $153.40, reaching a market cap of $3.74 trillion. A close at these levels would mark a new all-time high on the daily chart.

BP shares are currently up 1.20% (peaking earlier at 9.30%) on U.S. markets following reports from the Wall Street Journal that Shell is in preliminary talks to acquire its London-based rival. If completed, the deal would rank among the largest in European history, potentially creating an oil giant capable of competing with ExxonMobil and Chevron.

During the second day of his testimony, Fed Chair Jerome Powell reiterated a cautious, data-dependent approach to monetary policy, noting that the Fed is waiting to see further developments in core inflation.

The market currently prices in about a 25% chance of a rate cut at the July 30 meeting. Powell stressed that federal debt levels are not a factor in monetary policy decisions.

Senate questions were heavily focused on rate cuts, with multiple participants suggesting Powell is the only one who can reduce the government’s high interest expenses on public debt — though Powell remained firm in his stance.

Trump announced that the U.S. will meet with Iran for talks, with a potential agreement on the table as soon as next week, though he emphasized it's not a necessity. He also said there are no current signs that Iran is rebuilding its nuclear infrastructure.

U.S. new home sales in May came in at 623,000 — below expectations of 694,000 and down from 743,000 previously — highlighting ongoing weakness in the housing market, with supply rising but a lack of new buyers.

At the NATO summit, Trump reaffirmed the U.S. commitment to the alliance, which he said would grow stronger under his administration.

European defense stocks such as Rheinmetall, BAE Systems, Thales, and Safran rose following remarks that significantly higher defense spending is "inevitable."

WTI crude oil rebounded 0.90% to $65.60 per barrel.