Wall Street Indices End Mixed on Tuesday
On Tuesday, major Wall Street indices concluded trading in a mixed fashion. While the Nasdaq reached new heights, driven by NVIDIA, its counterparts fell amidst the market absorbing inflation figures and quarterly reports from large financial institutions.
Key Index Movements
- The Dow Jones Industrial Average dropped 0.98% to 44,022.89 points.
- The S&P 500 declined 0.40% to 6,243.71 points.
- The Nasdaq Composite, a technology-heavy index, advanced 0.18% to 20,677.80 units.
This marked the fourth out of five consecutive sessions where the Nasdaq, heavily weighted towards technology, closed at a historical high since June 27.
NVIDIA’s Impact on the Market
NVIDIA, a leading chip manufacturer for artificial intelligence, was the primary catalyst behind the Nasdaq’s rise after announcing plans to resume sales of its H20 semiconductor in China.
- NVIDIA’s stock price surged 4.01% to $170.65, resulting in a market capitalization of $4.17 trillion.
- The positive news encouraged other chip manufacturers, such as Advanced Micro Devices and Super Micro Computer, to see gains.
- The semiconductor index and the S&P technology index also rallied.
Rob Swanke, Chief Investment Research Analyst at Commonwealth Financial Network, noted that the NVIDIA news signaled investors returning to technology stocks after moving away due to high valuations.
“I would say it’s a one-day bounce,” Swanke added, pointing out that investors are waiting to see if increased sales translate into profits.
Inflation Concerns and Trade Tensions
A report indicated that U.S. consumer prices rose in June by the largest margin in five months, suggesting tariffs might be starting to fuel inflation. However, underlying inflation remained moderate, offering some reassurance despite the price surge.
“Investors are digesting U.S. inflation figures, keeping an eye on tariffs announced by Donald Trump and potential retaliation from trading partners,” according to experts at CiBanco.
Uncertainty in Banking Sector
Wall Street began the second-quarter earnings season on a gloomy note, with banking stocks experiencing volatility.
