Tech Surge Lifts Nasdaq as Inflation and Bank Earnings Weigh on Dow

 

U.S. stocks traded mixed on Tuesday as investors digested fresh inflation data and the kickoff of bank earnings season. The Nasdaq Composite jumped 0.8%, powered by a rally in semiconductor stocks, while the Dow Jones Industrial Average slipped 0.3% amid concerns over rising prices and uneven financial sector results.

Key Drivers:

• Nvidia (NVDA) soared nearly 5% after announcing plans to resume AI chip sales to China, following a green light from the U.S. government. The move sparked a broader rally in chipmakers, with AMD and Micron also posting strong gains.

• The Consumer Price Index (CPI) rose 0.3% month-over-month and 2.7% year-over-year in June, signaling a slight acceleration in inflation. Core CPI, excluding food and energy, climbed 2.9% annually.

• Bank earnings painted a mixed picture: JPMorgan and Citigroup beat expectations, while Wells Fargo fell short, cutting its net interest income forecast. BlackRock also reported record assets under management but saw its stock dip on revenue concerns.

Investor Outlook:

With inflation ticking up and President Trump’s tariff threats looming, traders are closely watching the Federal Reserve’s next move. Most bets point to a rate hold this month, with a potential cut in September. Meanwhile, tech optimism continues to buoy sentiment, even as financials face headwinds.

Want a deeper dive into how AI chips and trade policy are reshaping the market? I can break it down further.