Nasdaq 100: Nvidia Powers US Stocks Higher Despite Rising CPI Concerns

S&P 500 Opens at New High as Nvidia Powers Tech Rally

U.S. stocks opened Tuesday with mixed moves, as the S&P 500 set a fresh intraday record above 6,300, supported by a strong rebound in Nvidia. Gains in tech helped offset early pressure from inflation data showing consumer prices picked up in June.

Shortly after the open, the S&P 500 was up 0.2%, the Nasdaq Composite added 0.7%, while the Dow Jones Industrial Average slipped 0.3%.

June’s consumer price index rose 0.3% month over month, lifting the annual rate to 2.7%, up from May and matching economist forecasts. Core CPI, which excludes food and energy, increased 0.2% on the month and 2.9% from a year ago — also in line with expectations. The data points to a re-acceleration in inflation, adding to uncertainty around Federal Reserve policy and potential tariff effects heading into late summer.

Can Nvidia’s China Reentry Sustain the Technology Bid?

Tech is leading at the open, with the S&P technology sector up 1.6% — the only sector in positive territory.

Nvidia jumped 4.8% after confirming it expects to resume H20 AI chip sales to China, contingent on licensing approvals from the U.S. government. The announcement comes after prior export restrictions had halted deliveries, and traders welcomed the update as a sign of stabilizing supply chains.

The chipmaker’s strength lifted peers, with AMD up over 7%, Broadcom climbing 2.5%, and Micron gaining 2%. Broader AI-related names also saw early gains, including Super Micro Computer, Lam Research, and Monolithic Power Systems.

Why Are Financials Under Pressure Despite Earnings Beats?

Financials fell 1.1% after mixed reactions to big bank earnings.

Wells Fargo shares slid over 5% despite a profit beat, after it lowered its full-year net interest income forecast.

JPMorgan dipped slightly after reporting stronger-than-expected trading and investment banking revenue. Citigroup rose nearly 2% on an earnings beat, standing out in an otherwise weak sector.

The pullback reflects investor concerns about profit compression as rates stay elevated, and skepticism over whether trading and fee income can fully offset margin pressure. Treasury yields held steady following the CPI release, but remain at levels that weigh on interest-sensitive stocks.

Early Look: Will Tech Strength Offset Inflation Concerns?

With tech showing early leadership and inflation coming in hotter than May, traders are watching for signs of resilience beyond Nvidia-driven gains. Earnings from additional financial names and forward guidance will be key as investors assess broader corporate health.

All eyes remain on the Federal Reserve’s next move. While today’s CPI doesn’t shift expectations dramatically, a sustained rise in inflation could delay rate cuts further into the year. For now, tech momentum is keeping the bulls in control.

More Information in our Economic Calendar.