Bank Earnings Drag S&P Lower from Recent High
Markets were mixed on Tuesday as early gains faded by afternoon trading. While the Nasdaq stayed in positive territory, the S&P 500 and Dow pulled back. Investors reacted to fresh inflation data and a wave of earnings reports from major banks and tech companies, keeping overall sentiment cautious.
Key Points:
- Nasdaq rose 0.5% while S&P 500 and Dow slipped.
- June inflation hit 2.7%, matching forecasts but still above Fed’s target.
- Nvidia surged over 4% on news of resuming AI chip sales to China.
- Wells Fargo and BlackRock stocks dropped sharply after weak earnings.
- Bitcoin and gold prices declined; Treasury yields and the dollar rose.
Nvidia Leads Tech Rally Amid Chip Policy Shift;
Nvidia shares jumped over 4% after announcing it would resume shipments of its H20 AI chips to China, following signals from the White House about easing export restrictions. This triggered a wider rally across semiconductor stocks: AMD surged 6%, Arm rose 3%, and Broadcom gained 2%. Super Micro Computer led the S&P 500 with a 7% gain, while Microsoft, Apple, and Alphabet each climbed about 1%. However, Tesla and Meta ended down 1%, showing the rally wasn’t across the board.
Also Read; Top Stock Movers: Nvidia, BlackBerry, Paychex, and more
Earnings season kicked off with mixed results from big financials. Wells Fargo and BlackRock both saw sharp declines after underwhelming reports, while Citigroup posted a modest gain. Elsewhere, Bitcoin dropped to $117,300 after recent record highs, and oil and gold prices both fell. Treasury yields rose to 4.48%, and the dollar continued its upward trend. Overall, the day reflected investor uncertainty as strong tech gains battled against inflation concerns and weak bank earnings.
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