Recent news about Nvidia and inflation data have led to improved sentiments for the US stock market.
US Stock Market Overview
U.S. stock indexes opened higher on Tuesday amid positive investor sentiment. Despite tariff constraints and trade war tensions, major indices showed gains, except for the Dow Jones, which fell by 0.3%. The S&P 500 rose by 0.21%, and the Nasdaq outperformed with a 0.65% increase. Tech stocks, particularly Nvidia, were driving the gains as the company reported a breakthrough in its efforts to resume AI chip sales in China.
Inflation Data
Data from the Bureau of Labor Statistics indicated that the U.S. Consumer Price Index rose by 0.3% month over month and 2.7% year over year. Compared to May's data, where consumer prices increased by 0.1%, current figures exceeded the economist forecast of 2.6%. 'Both stock and bond markets have reacted favorably to the June U.S. CPI data,' said Mohamed El-Erian, president of Queens' College, Cambridge. He added that these figures might intensify pressure on the Federal Reserve to cut rates.
Large Banks' Earnings Reports
Major banks have started reporting second-quarter results, including JPMorgan, Citigroup, and Wells Fargo. For instance, JPMorgan exceeded expectations with an 8% quarter-over-quarter revenue increase, reaching $2.5 billion. Investors are also looking forward to earnings reports from Goldman Sachs, Johnson & Johnson, United Airlines, Netflix, and others.
The U.S. stock market is showing positive trends due to Nvidia's news and inflation data, and significant earnings reports from major banks are anticipated.
