Overview of Wall Street Indices Performance
On Tuesday, major indices on Wall Street closed in a mixed fashion. The Nasdaq reached new heights, driven by Nvidia, while other stocks declined amidst the digestion of inflation data and quarterly reports from large banks.
Individual Index Performance
- Dow Jones Industrial Average: Fell 0.98% to 44,023.29 points.
- S&P 500: Dropped 0.40% to 6,243.76 points.
- Nasdaq Composite: Increased 0.18% to 20,677.80.
Nvidia’s Impact on the Nasdaq
Shares of Nvidia surged 4.01% to $170.65, resulting in a market capitalization of $4.17 trillion after the company announced it would resume sales of AI chips H20 to China. Other chip values and the SOX semiconductor index also advanced.
Inflation Data and Economic Context
The U.S. Consumer Price Index showed a monthly increase of 0.3% in June, following a 0.1% rise in May. This marked its highest level since January. Annually, inflation rose 2.7% compared to 2.4% in May.
“The rise in inflation should be interpreted cautiously, as the effects of tariffs are not yet fully visible. The Fed is expected to maintain a prudent stance in its upcoming meeting,” explained Diego Gonzalez, business development manager at Excent Capital.
Bank Quarterly Reports and Their Impact
During the start of the earnings season, shares of JP Morgan Chase (-0.85%) and Wells Fargo (-5.49%) fell after reporting declines in net income, while Citigroup (+3.61%) rose due to better-than-expected figures.
Sector Performance
Only the information technology sector reported gains, supported by chip manufacturers. Losses were led by materials and healthcare sectors. Within the Dow Jones, Nvidia shares excelled while American Express (-3.20%) led the declines.
Key Questions and Answers
- What was the overall performance of Wall Street indices? The major indices on Wall Street ended mixed, with the Nasdaq reaching new highs while the Dow Jones and S&P 500 experienced declines.
- Which company significantly influenced the Nasdaq’s performance? Nvidia‘s shares surged 4.01%, driving the Nasdaq to new heights and overcoming overall market declines.
- What were the monthly and annual inflation rates reported in June? The U.S. Consumer Price Index showed a monthly increase of 0.3% in June and an annual inflation rate of 2.7%, up from 0.1% in May and 2.4% respectively.
- How did bank quarterly reports affect stock performance? JP Morgan Chase and Wells Fargo shares fell due to reported declines in net income, while Citigroup stocks rose after presenting better-than-expected figures.
- Which sectors showed gains, and which led the declines? The information technology sector was the only one to report gains, supported by chip manufacturers. Materials and healthcare sectors led the declines.
