The Nasdaq rose 0.5% at 20,742.9, while the S&P 500 fell 0.2% to 6,258.7 and the Dow Jones Industrial Average was 0.7% lower at 44,133.1. All sectors except technology retreated intraday. Healthcare, materials, and financials led the decliners.
Wells Fargo (WFC) lowered its full-year net interest income outlook despite reporting Q2 results above market expectations.
JPMorgan Chase (JPM) reported better-than-expected Q2 results as investment banking activity gained momentum amid improving market sentiment. Chief Executive Jamie Dimon, however, warned that the US economy still faces substantial risks, including trade tariffs.
Citigroup (C) reported a year-over-year gain in net income and revenue during Q2.
In economic news, the consumer price index rose 0.3% month-over-month in June, the Bureau of Labor Statistics reported Tuesday. That's in line with an estimate from a Bloomberg-compiled survey but above the 0.1% gain in May. Annually, inflation accelerated to 2.7% from 2.4%, faster than the 2.6% consensus.
"Inflationary pressures heated up in June, as tariff impacts helped to push goods prices higher -- even after accounting for the pullback in vehicle prices -- while services inflation also gained some momentum following softer readings in two of the prior three months," Thomas Feltmate, senior economist at TD Economics, said in a note.
Core inflation, which excludes the volatile food and energy components, grew 0.2% from 0.1%, below the 0.3% forecast. The annual core measure came in at 2.9%, in line with market projections.
"Looking ahead, we expect tariff passthrough to intensify through the summer, as pre-tariff inventory stockpiles are drawn down, and businesses are forced to restock under significantly higher import duties," Feltmate said. "But the degree of tariff passthrough remains uncertain."
Most US Treasury yields rose, with the 10-year Treasury up 5.8 basis points to 4.49% and the two-year 6.1 basis points higher at 3.96%.
The ICE US Dollar Index advanced 0.6% to 98.68 intraday, while gold futures fell 0.6% to $3,338.30 per ounce.
Nvidia (NVDA) secured a "monster win" as the US government assured that licenses for the H20 graphic processing units sales in China will be granted, Wedbush Securities said. The tariff war halted H20 sales, and Wedbush said this cost Nvidia about $8 billion in quarterly sales. Shares jumped 3.9% intraday, among the top gainers in the S&P 500, the Nasdaq, and the Dow.
Among the top gainers in the S&P 500 and the NASDAQ was Advanced Micro Devices (AMD), with shares up more than 6%. The company plans to restart shipments of its MI308 chips to China as export licenses are approved, after the US Commerce Department recently informed the company that its applications would move forward for review, a spokesperson confirmed to MT Newswires.
In energy markets, West Texas Intermediate crude oil futures dropped 0.8% to $66.44 a barrel.
President Donald Trump on Monday said he will give Russia 50 days to reach a ceasefire agreement with Ukraine, promising 100% punitive tariffs on Russian imports to the United States and secondary tariffs on countries importing Russian oil if no deal is reached with the US.
"There probably has never been a US President more attuned to oil prices than the current, and one that is all too aware that depriving the global oil puzzle of Russian exports at this present time would be the final accelerative to a building seasonal rally which would no doubt push the Brent price to $80/barrel," PVM Oil Associates said in a note.
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