Nasdaq posts latest record close on Nvidia's China chip cheer
It was the tech-heavy index's fourth record close in five sessions, and its eighth since Jun 27.
Artificial-intelligence chip leader Nvidia gained 4 per cent after it unveiled plans to resume sales of its H20 AI chips to China. The news buoyed other chipmakers, with Advanced Micro Devices and Super Micro Computer both gaining more than 6.4 per cent.
The semiconductor index also advanced 1.3 per cent to its highest point in a year, while the S&P technology index climbed by the same percentage to hit a record high.
"The Nvidia news meant that some investors, who had moved into other stocks due to high tech valuations, were rotating back," said Rob Swanke, senior investment research analyst at Commonwealth Financial Network. "I would probably say it's a one-day pop," he added, noting that investors would look to see the sales reflected in upcoming earnings.
The Nasdaq Composite added 37.47 points or 0.18 per cent to end at 20,677.80. The Dow Jones Industrial Average dropped 436.36 points or 0.98 per cent to 44,023.29, and the S&P 500 lost 24.80 points or 0.40 per cent to 6,243.76.
INFLATION PICKS UP, BUT CORE STAYS MODERATE
Markets have been buoyant in recent weeks as concerns over the economic impact of President Donald Trump's trade policies eased. However, this week is seen as a key test, with second-quarter earnings and inflation data in focus.
US consumer prices posted their largest gain in five months in June, suggesting tariffs may be contributing to rising costs. Still, underlying inflation remained moderate, offering investors some relief.
"The picture from inflation this morning, coming in a little bit higher than expected but pretty much in line, gives you some sense that the tariffs are starting to flow through into the economy," said Commonwealth's Swanke.
"We'll get more concrete news, as we go through earnings, to see how companies are delivering the impact of higher tariffs."
BANK EARNINGS MIXED
The second-quarter earnings season opened on a muted note. JPMorgan Chase slipped 0.7 per cent despite raising its 2025 net interest income outlook, while Wells Fargo fell 5.5 per cent even as its profit improved due to reduced loan-loss reserves.
BlackRock reported a new milestone in assets under management, but its shares slid 5.9 per cent.
Citigroup bucked the trend, climbing 3.7 per cent to its highest finish since the global financial crisis, after its trading division delivered a strong performance that lifted second-quarter profits.
The number of shares changing hands on US exchanges on Tuesday was 16.82 billion, compared with the 17.55 billion average for the last 20 trading days.
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