The situation on Wall Street has become more complicated due to rising inflation and expectations of new tariffs. The markets are experiencing turmoil amid weak reports from financial institutions.
Market Reaction to Inflation Data
Tuesday was a day when inflation data strongly influenced the stock market. The Dow Jones dropped by 313 points, losing 0.5% by the end of the session. Meanwhile, the S&P 500 decreased slightly by 0.1%, moving away from a new record. However, the Nasdaq Composite rose by 0.5%, thanks to Nvidia, which announced plans to soon resume shipments of its GPUs to China.
Bank Earnings Under Pressure
Traders were also digesting a wave of bank earnings. Wells Fargo beat earnings expectations but saw its stock drop by more than 4% due to lowered forecasts for net interest income. JPMorgan Chase had solid second-quarter results but still faced a decline in stock prices. The biggest hit was suffered by BlackRock, whose shares fell by over 6% after missing quarterly revenue expectations.
Uncertainty in the Stock Market
Currently, Wall Street is engulfed in uncertainty about what will have a greater impact: accelerating inflation or a weak earnings season that might drag stocks down. Statistics show that indexes are already sitting at record highs, leaving little room for mistakes.
With numerous factors influencing the market simultaneously, investors remain perplexed, as each new report and inflation data could significantly alter the market situation.
