Nvidia Pushes Nasdaq to New Heights, While Broader Market Stumbles
On Tuesday, the Nasdaq Composite reached yet another record high, fueled by a surge in Nvidia shares. Meanwhile, other major Wall Street indices retreated, as investors showed little excitement over the latest inflation report and a wave of bank earnings.
Tech Sector Takes the Lead
The Nasdaq has now posted record closes in four of the past five sessions — and eight times since June 27. This underscores the continued momentum in the tech-heavy index.
Nvidia led the charge, climbing 4 percent after the company announced plans to resume sales of its AI-focused H20 chip in China. This development lifted sentiment across the semiconductor space.
Chip Stocks Ride the Wave
Following Nvidia's rise, shares of Advanced Micro Devices and Super Micro Computer each jumped more than 6.4 percent. The semiconductor index gained 1.3 percent, hitting its highest level in a year. Similarly, the tech segment of the S&P 500 also rose 1.3 percent to a new all-time high.
Wall Street Ends Mixed
Despite Nasdaq's climb, the overall market closed with mixed results. The Nasdaq Composite added 37 points to finish at 20,677. The Dow Jones Industrial Average, however, fell 436 points to 44,023, while the S&P 500 slipped nearly 25 points, ending at 6,243.
Markets Rebound, But a True Test Lies Ahead
In recent weeks, signs of a market revival have begun to emerge. Investors' initial concerns about the potential damage from President Donald Trump's trade policies, particularly new tariffs, have started to ease, allowing Wall Street to regain some upward momentum.
Earnings and Inflation in the Spotlight
This week was set to challenge the cautiously improved sentiment, as the second-quarter earnings season kicked off alongside the release of key inflation data. The question looming large: would businesses begin passing on tariff-related costs to consumers?
Consumer Prices Climb, But Core Holds Steady
The first major indicator showed that US consumer prices in June jumped at the fastest rate in five months. This suggests tariffs may be beginning to exert inflationary pressure. Still, core inflation remained modest, giving investors a measure of reassurance in the midst of broader price increases.
Banks Report Mixed Signals
Financial giants delivered uneven results. JPMorgan Chase saw a 0.7 percent decline in share price, even after raising its net interest income forecast for 2025. Wells Fargo's stock dropped 5.5 percent, despite stronger earnings driven by reduced loan-loss provisions. The catch: the bank lowered its own net interest outlook for next year.
BlackRock Breaks Records but Fails to Impress
Asset management leader BlackRock reached a new milestone in assets under management. Yet the market's reaction was cool — the stock fell by 5.9 percent. The decline illustrates how current gains may not be enough to outweigh concerns over what lies ahead.
Citigroup Surprises as Shares Hit Post-Crisis Highs
Defying broader market trends, Citigroup shares surged by 3 point 7 percent, reaching their highest level since the global financial crisis. The unexpected catalyst was a robust trading performance, which significantly lifted the bank's earnings for the second quarter.
Asian Markets Under Pressure as Dollar Gains Momentum
On Wednesday, Asian stock markets came under pressure following fresh US inflation data. The figures suggested that tariffs are beginning to push prices upward, weakening expectations for a dovish shift from the Federal Reserve. As a result, the US dollar strengthened against the yen, climbing to its highest point since early April.
Treasury Yields Climb, Giving the Dollar a Boost
US Treasury yields rose to their highest level in over a month, reinforcing the dollar's appeal. Higher yields make US assets more attractive to global investors, further fueling demand for the greenback.
Tech Stocks Hold Steady Amid Uncertainty
In contrast to the general market softness, technology stocks maintained their ground. Nvidia, the AI-sector favorite, saw a four percent jump the previous evening, helping support sentiment across the broader tech landscape.
Oil Trades Sideways, Consumer Prices Edge Higher
Brent crude prices remained steady, fluctuating around the 69 dollar mark per barrel. Meanwhile, US consumer prices rose by 0 point 3 percent in June — the largest monthly gain since January. Economists attributed the rise in prices for items like coffee and household goods to the impact of Trump's latest round of import tariffs.
Asian Markets Mixed as Caution Reigns
In early Wednesday trading, Asia-Pacific markets posted a varied performance. Australia's ASX 200 and South Korea's KOSPI each slipped by about zero point six percent, reflecting continued investor caution amid global economic uncertainty.
China Dips Slightly, Japan Holds Ground
Mainland China's blue-chip index edged down by zero point one percent, showing restrained market sentiment. Meanwhile, Japan's Nikkei remained flat, as gains from US chipmaker Nvidia and a weaker yen helped offset earlier fluctuations. The yen's softness provided a boost to Japanese exporters, supporting the overall stability of the index.
Taiwan and Hong Kong Move Higher
Taiwan's benchmark rose by half a percent, while Hong Kong's Hang Seng climbed by zero point eight percent, extending Tuesday's one point six percent rally. The ongoing strength in tech stocks continued to fuel momentum in both regions.
US Futures Drift Lower
Futures on the S and P 500 fell by zero point two percent, following a zero point four percent decline in the main index during the previous session. Investors remained on edge ahead of upcoming corporate earnings and remained wary of continued trade policy actions from Washington.
Dollar Nears Multi-Week Peak
The US dollar remained firm, trading close to recent highs against major currencies. The dollar index held steady at 98 point 545, just below the 98 point 699 level reached on Tuesday — its highest since late June. The greenback's resilience is underpinned by expectations of Federal Reserve policy decisions and demand for safe-haven assets.
