STORY: U.S. stocks ended mixed on Tuesday, with the Dow dropping about one percent, the S&P 500 shedding four-tenths of a percent, but the Nasdaq ticked up nearly two-tenths of a percent.
It was the fourth session out of five that the technology-heavy Nasdaq posted a record close.
AI-chip leader Nvidia was the primary factor. Its shares jumped 4% after the company unveiled plans to resume sales of its H20 AI chip to China, explained Eric Diton, president and managing director of The Wealth Alliance.
“As we know, Nvidia is the highest-valued stock in the market in the world, north of $4 trillion. So, when Nvidia moves sharply higher, which it is today, that in and of itself can move the Nasdaq. But Oracle, Apple, Microsoft, which are now over 500, those tech stocks are back in control for sure, and that is what's moving the market today.”
The news buoyed other chipmakers, with Advanced Micro Devices and Super Micro Computer gaining nearly six-and-a-half and seven percent, respectively.
Meanwhile, Wall Street banks kicked off second-quarter earnings season, with their stocks whipsawing in volatile trade.
Shares of Wells Fargo slid five-and-a-half percent after the bank cut its net interest income forecast, though it beat quarterly profit estimates.
JPMorgan Chase raised its 2025 net interest income outlook, but shares still ended lower.
BlackRock said its assets under management hit a new high in the second quarter as global markets rallied, but its shares tumbled nearly six percent after it said a large Asian institutional client pulled money from an index strategy.
Bucking the trend, Citigroup climbed more than three-and-a-half percent to its highest finish since the global financial crisis, after its traders delivered a windfall that boosted second-quarter profit.
Data on Tuesday showed U.S. consumer prices posted their biggest jump in five months in June, hinting that tariffs may be starting to heat up inflation.
Still, underlying inflation stayed moderate.
Markets are betting the Federal Reserve will hold interest rates steady this month, with a more than 50% chance the central bank will resume rate cuts in September.
