Investors also had their eyes on the latest Consumer Price Index (CPI) data, which showed inflation heating up again, and on early bank earnings reports that painted a mixed but market-moving picture. As inflation ticks up and Trump’s tariffs raise concerns about price pressures and trade frictions, traders are weighing what comes next for interest rates, AI chip exports, and the global economy.
How are the major indexes performing today?
- S&P 500: Up 0.3%, hovering near record highs
- Nasdaq Composite: Gained about 0.8%, powered by chip stocks
- Dow Jones Industrial Average: Down 0.2%, lagging behind due to bank stock weakness
Tech dominated the session while financials saw mixed moves after key earnings reports.
Why did Nvidia stock surge and what does it mean for AI chipmakers?
Nvidia (NVDA) shares soared on Tuesday after the company revealed it expects to resume AI chip sales to China, one of its top markets. This comes after the Trump administration gave signs that it will approve such exports — a sharp shift from earlier restrictions amid tensions with Beijing.
This policy reversal helped Nvidia approach a fresh record close, driving strength in the tech sector and especially in chip stocks. The move is seen as a big win not just for Nvidia, but for the broader AI ecosystem, which had feared a prolonged block on Chinese sales.
Nvidia (NVDA) jumped nearly 5% after the U.S. cleared it to resume H20 AI chip sales to China, easing trade tension fears and reviving bullish sentiment in the semiconductor sector.Other big tech gainers:
- AMD: +8%
- Super Micro Computer: +6%
- Micron & Broadcom: Posted solid gains, lifting the Philly Semiconductor Index by over 2%
Which stocks are making the biggest moves today?
Here are some of today’s standout gainers and losers:
Winners
- Nvidia (NVDA): +4.8%
- AMD (AMD): +7.9%
- Super Micro (SMCI): +6%
- MP Materials: +19% after Apple signed a rare-earth magnet deal
- Trade Desk (TTD): +11% after being added to the S&P 500
Losers
- Wells Fargo (WFC): −4.7%
- BlackRock (BLK): −6.2%
What did the June CPI inflation data reveal?
Inflation is showing signs of picking up again. The Consumer Price Index rose 0.3% month-over-month in June and 2.7% year-over-year, up from May’s pace. According to analysts, these numbers reflect early impacts of new tariffs and trade-related cost pressures, tied directly to President Trump’s tariff threats.
Trump’s latest trade actions — including planned duties on Canada, the EU, and Mexico from August 1 — are starting to ripple through pricing data. Some analysts believe these tariff-driven price hikes could influence future Fed decisions, especially as Trump continues to push hard for interest rate cuts.
June’s Consumer Price Index (CPI) came in right on target, calming market nerves:
- Headline CPI: +0.3% month-over-month, +2.7% year-over-year
- Core CPI (excluding food and energy): +0.2% m/m, +2.9% y/y
While inflation remains sticky, the report didn’t come in hotter than expected, reducing fears of a surprise Fed hike—but it’s also not cool enough to guarantee a July rate cut.
How are big banks performing as earnings season begins?
Bank earnings kicked off with mixed results on Tuesday. JPMorgan Chase (JPM) and Citigroup (C) both beat expectations, helping their stocks edge higher. JPMorgan, in particular, saw strength in deal-making, a sign Wall Street is rebounding from earlier shocks linked to Trump’s aggressive tariff strategies.
On the flip side, Wells Fargo (WFC) fell after it lowered its full-year net interest income forecast, a key indicator of bank profitability. While some banks are adapting well to higher rates and trade volatility, others remain under pressure.
Q2 results from major U.S. banks were a mixed bag:
- JPMorgan Chase (JPM): Beat estimates but fell slightly
- Citigroup (C): Reported a 25% profit surge, stock up nearly 1%
- Wells Fargo (WFC): Beat expectations, but dropped ~5% on weaker net interest income
- BlackRock (BLK): Hit a record $12.5 trillion in assets under management, but slid over 6% on revenue concerns
Bank investors were cautious, especially with interest rate headwinds still looming.
How are Trump’s new tariff threats impacting market sentiment?
President Trump’s escalating tariff plans are becoming a growing concern for investors. Over the past week, he’s issued strong warnings to key trade partners, calling for increased tariffs on a wide range of imports. This aggressive stance — set to intensify by August 1 — is sparking fears of global trade disruption, supply chain issues, and inflation pressures.
These moves also put additional weight on companies with international exposure, particularly manufacturers, automakers, and tech exporters. Wall Street is closely watching for any signs of retaliation from global partners.
What does this mean for the Fed’s next move on interest rates?
With both inflation rising and global trade risk growing, all eyes are now on the Federal Reserve. The Fed’s next meeting is just over two weeks away, and most market bets point to a rate hold this month, followed by a possible rate cut in September.
However, President Trump and his allies continue to pressure Fed Chair Jerome Powell for deeper and faster rate cuts. They’ve also started criticizing the Fed on other issues, including a controversial renovation of its headquarters, reflecting broader tensions between the White House and the central bank.
What else are investors watching?
- Fed outlook: With inflation cooling but not collapsing, investors are dialing back July rate cut bets.
- Bond yields: The 10-year Treasury yield is hovering around 4.46%
- Oil prices: WTI crude trading between $66–$67, slightly down
- Global economy: China posted 5.2% Q2 GDP growth, boosting global sentiment
What should investors watch next?
The stock market today reflects a tug-of-war between tech optimism, inflation fears, and tariff uncertainty. With Nvidia’s China win boosting confidence in AI growth and bank earnings delivering mixed signals, markets remain sensitive to Trump’s trade moves and any shift in Fed policy.
Key dates to watch include the Fed meeting in two weeks, the August 1 tariff deadline, and continued corporate earnings over the next few days. For now, markets are cautiously optimistic — but volatility could return fast if inflation accelerates further or trade tensions boil over.
FAQs:
Q1: Why did Nvidia stock rise today in the stock market?
Nvidia stock rose after Trump’s team backed AI chip sales to China.
Q2: What did the June CPI inflation data show for the US market?
June CPI showed inflation jumped 2.7% year-over-year due to tariffs.
