Stock market today: S&P 500, Nasdaq climb on Nvidia boost, with CPI inflation, bank earnings in focus
Tech led US stocks higher on Tuesday as a key consumer inflation print showed inflation accelerated in June, big banks kicked off earnings season, and Nvidia (NVDA) looked set to receive a green light for trade with China from the Trump administration.
The S&P 500 (^GSPC) moved up 0.4%, while the tech-heavy Nasdaq Composite (^IXIC) climbed 0.8%, buoyed by AI chipmaker Nvidia's gains. The Dow Jones Industrial Average (^DJI) was just below the flat line on the heels of closing gains for the major gauges.
Nvidia eyed a fresh record close after the company said that it's planning resume sales of its AI chips to China — one of its most important markets — after receiving assurances from the US government that it will be granted approval. The dramatic reversal in the Trump administration's earlier stance on export curbs, part of its trade standoff with Beijing, helped lift shares of chip stocks across the board.
President Trump's trade policy also loomed over the June consumer inflation report, which showed the first real signs of tariff-driven price increases. The Consumer Price Index headline number rose 0.3% month over month and 2.7% year over year, both accelerations from May's data.
Meanwhile, big banks unofficially kicked off earnings season Tuesday morning. Shares of Citi (C) and JPMorgan (JPM) climbed after reporting better-than-expected earnings, while Wells Fargo (WFC) fell as the bank cut its full year forecast for net interest income, a key profitability metric. JPMorgan's dealmaking boost in the quarter demonstrated how Wall Street recovered from Trump's most sweeping tariffs in real time.
Read more: Full earnings coverage in our live blog
The backdrop to both events is Trump's escalatory moves on tariffs over the past week. He has spent the last several days threatening key trade partners, most notably Canada, the European Union, and Mexico, with high duties from Aug. 1.
The tariffs drama and the inflation and earnings pictures also factor into the Federal Reserve's next move on interest rates, coming in just over two weeks. The vast majority of bets are on a hold this month, followed by a rate cut in September.
Of course, Trump has spent the past few weeks pushing for more cuts. He and his allies are beefing up their criticism of Fed Chair Jerome Powell, both on rates and on new fronts, like the Fed's headquarters renovation.
LIVE10 updates-
Laura Bratton
Tech leads US stocks higher
Tech led stocks higher on Tuesday as chip stocks rose across the board following news that AI chipmaker Nvidia (NVDA) and its rival AMD (AMD) were on track to resume sales of their chips to China.
The Nasdaq Composite (^IXIC) jumped 0.7%, while the S&P 500 (^GSPC) rose 0.3%. The Dow Jones Industrial Average (^DJI) fell 0.3%, as a key consumer inflation report showed prices accelerated in June.
Meanwhile, big banks' earnings season kicked off with mixed results from JPMorgan (JPM), Citi C) and Wells Fargo (WFC). Shares of Citi rose after better-than-expected earnings, while Wells Fargo fell as the bank cut its full year forecast for net interest income, a key profitability metric.
JPMorgan's dealmaking boost in the quarter demonstrated how Wall Street recovered from Trump's most sweeping tariffs in real time but wasn't enough to push the stock higher, with shares falling 1% early Tuesday.
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Laura Bratton
Chip stocks jump, Nvidia eyes fresh record as it looks to resume H20 sales to China
Chip stocks climbed Tuesday before the market open after Nvidia (NVDA) and AMD (AMD) said they are planning to resume sales of their AI chips to China after the US government approves them.
Nvidia climbed more than 4%, while AMD jumped over 5%.
Micron (MU) and Broadcom (AVGO) rose about 2%. US-listed shares of Nvidia and AMD's contract manufacturer, TSMC (TSM), gained more than 2%.
Nvidia's gain is set to push the stock to a new record high, boosting the company's market cap further above the $4 trillion mark after cementing its spot as the world’s most valuable company in history last week.
Read the full story about Nvidia stock's gain on Tuesday here.
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Josh Schafer
Consumer price increases accelerate in June
The latest data from the Bureau of Labor Statistics showed that consumer prices increased 2.7% over the prior year in June, an acceleration from May's 2.4% and above economists' forecast for 2.6%.
On a month-over-month basis, prices increased 0.3%, in line with economists' expectations. Prices increased 0.1% on a monthly basis in May by comparison.
On a "core" basis, which strips out the more volatile costs of food and gas, prices in June climbed 0.2% over the prior month, ahead of May's 0.1% rise but below consensus projections for a 0.3% increase. Over the last year, core prices rose 2.9%, in line with expectations and above the 2.8% seen the month prior.
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Grace O'Donnell
Trending tickers premarket: Nvidia, JPMorgan, BlackRock, The Trade Desk
Here's a look at the top tickers trending on Yahoo Finance this morning:
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Grace O'Donnell
JPMorgan gets a dealmaking boost as Wall Street recovered from tariff tumult
JPMorgan Chase's (JPM) second quarter results came in better than expected on Tuesday, though shares in the bank were lower by less than 1% in premarket trading.
Yahoo Finance's David Hollerith reports:
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Karen Friar
Jerome Powell has more housing problems now, including the Fed's
For all the talk about the Fed's prolonged challenge to tame the frenzy of the COVID-era housing market, it's the central bank's own headquarters that's drawing intense scrutiny from the White House.
But that's just one of the Fed's housing problems, Yahoo Finance's Hamza Shaban reports in today's Morning Brief:
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Karen Friar
BlackRock assets balloon to over $12 trillion in Q2
BlackRock's (BLK) assets under management surged to top $12 trillion in the second quarter, the first money manager to pass that milestone.
Adjusted quarterly profit came in at $1.88 billion, or $12.05 per share, up from $1.55 billion, or $10.36 per share, a year earlier. That compares with an average estimate for $10.78 a share, per a FactSet survey of analysts.
Shares in BlackRock slipped 1% in premarket trading as investors parsed its results.
Reuters reports:
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Karen Friar
Nvidia shares pop as US clears way for AI chip sales to China
Nvidia (NVDA) stock is popping in premarket trade after the AI chipmaker got a breakthrough in its China sales logjam.
Shares are up 5% after Nvidia said it had secured Trump administration approval to restart deliveries of its China-tailored AI chip.
Bloomberg reports:
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Rian Howlett
Gold bounces back from early week slip
Gold (GC=F) prices rebounded from a mild dip Monday as global tariff talks have failed to offer investors a sense of security, bolstering the value of the haven asset.
Bloomberg reports:
Bullion rose as much as 0.5% after dropping by a similar amount in the previous session. President Donald Trump said he was open to more talks with major economies including the European Union. But that appeared to be at odds with his insistence that letters to governments setting tariff rates are “the deals” for trade partners.
The precious metal has surged by more than a quarter this year, hitting a record above $3,500 an ounce in April, as the US’s aggressive and erratic trade policy enhanced its appeal as a store of value in uncertain times. However, the rally has stalled over the last three months as investors wait for more clarity on the eventual contours of the new trade system, and on signs they’re hesitant to buy gold at such elevated levels.
“If trade talks deteriorate before August, we could easily see bullion retest or even breach its former highs,” said Fawad Razaqzada, a market analyst at City Index. “For now, the market seems firmly in wait-and-see mode, keeping the gold forecast leaning cautiously bullish.”
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Rian Howlett
Nvidia eyes return to Chinese markets with China-compliant H20 chip
Nvidia (NVDA) is moving to reestablish its foothold in the Chinese market, announcing late Monday night that it plans to restart sales of its H20 AI chips in the region. The company has also unveiled a new GPU model specifically engineered to align with US export regulations.
In a company blog post, Nvidia said it is currently seeking approval from US authorities to resume shipments of the H20, with licensing expected "soon." Once cleared, deliveries could begin in short order.
To further strengthen its China strategy, Nvidia announced a "new, fully compliant NVIDIA RTX PRO GPU" that “is ideal for digital twin AI for smart factories and logistics.”
CEO Jensen Huang recently met with both US and Chinese officials, including former President Donald Trump, in efforts to foster international cooperation on AI and reinforce Nvidia’s role in open-source AI research.
As of Monday's close, Nvidia shares were down 0.5% at $164.07. However, the stock saw a rebound in after-hours trading, gaining 4.2% to $170.78.
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