Dow, S&P 500 Drop After June CPI
Stocks closed mixed on Tuesday as investors digested hotter June inflation data, a fresh batch of big bank earnings, and news that Nvidia may resume chip sales to China.
The S&P 500 lost 0.4% and the Dow fell 436 points, or 1%, weighed down by financial stocks, while the Nasdaq gained 0.1% thanks to a 4% jump in Nvidia shares. June’s Consumer Price Index rose 0.3% month over month and 2.7% year over year, reinforcing concerns that President Trump’s planned 30% tariffs on the EU and Mexico could push inflation higher.
Despite meeting expectations, the CPI report raised fears that tariff-driven price pressures are starting to emerge. Wells Fargo (-5.5%) and JPMorgan (-0.9%) fell after mixed earnings, while Citigroup bucked the trend, gaining 3.8% on strong results and a buyback plan.
As earnings season picks up, Wall Street remains cautious, with low expectations for S&P 500 earnings growth and growing uncertainty over future Fed policy amid trade and inflation risks.
Source: Trading Economics
