Inflation Hit Indexes, Nvidia Pulled Nasdaq Out

Nvidia (NVDA) just gave the Nasdaq a solid boost, climbing over 4% to hit a brand-new record high at $170.70. This random increase happened when the news broke that Nvidia is expected to resume selling its powerful AI chips to China.

The Trump administration, which had previously attempted to restrict these exports, now appears ready to approve the trade. This one move sent chip stocks flying and helped the Nasdaq close the day up 0.18%, setting another record high.

Dow Takes a 400-Point Hit

While tech was all green, the Dow Jones had a rough day, dropping nearly 400 points, or 0.98%. The S&P 500 didn’t do much better, slipping 0.4% as well.

The main reason for this drop has been rising inflation. The recent June Consumer Price Index (CPI) report showed prices climbing 0.3% month-over-month and 2.7% year-over-year. That’s a little faster than in May and spooked some investors, especially with President Trump throwing around more tariff threats.

Big Banks Caught on Inflation Radar

JPMorgan (JPM) and Wells Fargo (WFC) shares slipped after earnings dropped, but Citi (C) pulled a surprise and actually rose. These banks basically kicked off Q2 earnings season, and Wall Street is watching closely to see how they hold up with all this inflation and rate uncertainty in the air.

What It All Means

The final takeaway is, we see tech flexing hard right now, and Nvidia is the MVP. But rising prices and trade drama are putting pressure on the broader market. If you’re watching index stocks, especially within the S&P 500 or Dow, this mix of inflation fears and geopolitical moves might keep the market a bit shaky for now.

The Nasdaq might keep riding the AI wave, but keep your eyes on inflation data, Treasury yields (which both jumped), and any more policy shakeups from D.C. The next few weeks could get interesting.