Overview of Wall Street Performance
On Tuesday, major indices on Wall Street displayed mixed performance. The Nasdaq rose, driven by a strong advance from Nvidia, as investors digested inflation data in line with expectations and the initial corporate reports of the second quarter.
- Dow Jones Industrial Average: Down 0.58% to 44,201.31 points
- S&P 500: Up 0.04% to 6,271.30 points
- Nasdaq: Up 0.73% to 20,790.29 points
Nvidia’s Impressive Performance
Shares of Nvidia surged 4.38% to $171.25, reaching a market capitalization of $4.17 billion after the company announced it would soon resume sales of AI H20 chips to China. Other chip stocks also advanced.
“The tech giant is regaining momentum at its all-time high. With technical analysis, we see it reaching new highs, even surpassing $190 per share,” said Diego Avilés, analyst at Capitaria Financial Markets.
Inflation Data and Corporate Earnings
The Consumer Price Index (CPI) for the United States increased by 0.3% on a monthly basis in June, following a 0.1% rise in May. This marked its highest level since January. On an annual basis, the CPI rose 2.7% after advancing 2.4% in May.
Mixed Corporate Earnings Reports
JP Morgan Chase fell 0.39% after reporting a 17% decline in net income compared to the previous year. Wells Fargo also dropped 5.48% following a report of a decrease in net income.
Citigroup shares rose 3.25% after reporting a 25% increase in second-quarter earnings, driven by higher fees and strong performance in its trading business. Despite Blackrock‘s solid figures, its stock fell 5.29%.
Key Questions and Answers
- What is the overall performance of Wall Street indices? The major indices on Wall Street displayed mixed performance, with the Nasdaq rising due to a strong advance from Nvidia.
- What drove Nvidia’s stock performance? Nvidia’s shares surged after the company announced it would resume sales of AI H20 chips to China.
- What are the recent inflation data and CPI trends in the US? The Consumer Price Index (CPI) increased by 0.3% on a monthly basis in June, marking its highest level since January. The annual CPI rose 2.7% after advancing 2.4% in May.
- How did major companies perform in their Q2 earnings reports? JP Morgan Chase and Wells Fargo reported declines in net income, while Citigroup saw a 25% increase in earnings. Blackrock reported solid figures but still experienced a stock decline.
