Wall Street Ends Mixed After Inflation Data; Nasdaq Hits Record High Led by Nvidia
Information technology was the only S&P sector to close higher, thanks to gains in chipmakers. Materials and healthcare led the decliners.
Quick overview
- Stocks on Wall Street closed mixed, with the Nasdaq reaching a record high driven by Nvidia's strong performance.
- The Dow Jones fell 0.98% and the S&P 500 declined 0.40%, while Nvidia shares surged 4.01% after resuming sales of AI chips to China.
- U.S. consumer inflation rose 0.3% in June, prompting analysts to expect a cautious stance from the Federal Reserve.
- Oil prices declined due to the lack of new U.S. sanctions on Russian crude and concerns about oversupply.
Stocks on Wall Street closed mixed on Tuesday as investors digested inflation figures and corporate earnings. The Nasdaq reached a new record high, buoyed by a strong performance from Nvidia, while the Dow and S&P 500 declined.
The Dow Jones Industrial Average fell 0.98% to 44,023.29 points, while the S&P 500 lost 0.40% to 6,243.76. In contrast, the tech-heavy Nasdaq Composite gained 0.18%, closing at a new record of 20,677.80.
Shares of Nvidia surged 4.01% to $170.65, lifting its market capitalization to $4.17 trillion. The AI chipmaker rallied after announcing it would resume sales of its H20 AI chips to China. Other chip stocks and the broader Philadelphia Semiconductor Index (SOX) also advanced.
On the macro front, U.S. consumer inflation rose 0.3% in June, following a 0.1% increase in May — marking the largest monthly rise since January. Year-over-year inflation accelerated to 2.7%, up from 2.4% the prior month.
Analysts caution that the full impact of recently announced tariffs has yet to be reflected in inflation figures. As a result, the Federal Reserve is expected to maintain a cautious stance at its upcoming policy meeting.
In the early stages of earnings season, JPMorgan Chase shares slipped 0.85%, and Wells Fargo dropped 5.49% after both banks reported declines in net income. Meanwhile, Citigroup gained 3.61% after beating analysts’ expectations.
Information technology was the only S&P sector to close higher, thanks to gains in chipmakers. Materials and healthcare led the decliners. Within the Dow, Nvidia stood out as the top performer, while American Express fell 3.20%, leading losses.
Oil Prices Decline on Lack of New Sanctions Against Russian Crude
Oil prices fell again on Tuesday, pressured by the absence of new U.S. sanctions on Russian crude and renewed concerns about oversupply.
Brent crude for September delivery declined 0.72% to $68.71 per barrel, while U.S. benchmark West Texas Intermediate (WTI) for August delivery dropped 0.69% to $66.52.
President Donald Trump warned Monday that he may impose “secondary tariffs” — penalties on nations doing business with Moscow — if no peace deal is reached within 50 days. “If we don’t have a deal in 50 days, it’s very simple — tariffs will be 100%,” he told reporters.
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