The Nasdaq Composite closed at a record high on Tuesday, driven by gains in chipmaker Nvidia. This marks the fourth record in five sessions and the eighth since late June. Nvidia shares rose 4% after announcing it would resume sales of its H20 AI chip to China. The news gave a strong boost to other chipmakers as well.
Shares of Advanced Micro Devices and Super Micro Computer jumped over 6.4%. The semiconductor index rose 1.3%, reaching its highest level in a year. The S&P technology index climbed by the same margin, also setting a new record.
Rob Swanke, a senior investment analyst at Commonwealth Financial Network, said the move was likely short-lived. According to him, some investors who had shifted away from tech stocks due to high prices are now returning, at least for the moment. He added that future earnings reports will be key to seeing if the chip sales translate into profits.
At the close of trading, the Nasdaq Composite rose 37.47 points, or 0.18%, to finish at 20,677.80. In contrast, the Dow Jones Industrial Average dropped 436.36 points, or 0.98%, to end at 44,023.29. The S&P 500 lost 24.80 points, or 0.40%, to finish at 6,243.76.
Despite the mixed results, recent weeks have been strong for markets. Investor worries about the U.S. economy, fueled by former President Trump’s tariffs, have eased. This shift in mood has helped lift Wall Street.
This week is seen as a key moment for investor confidence, with earnings season kicking off and new inflation reports expected. Early data showed that U.S. consumer prices rose sharply in June — the biggest jump in five months. This may suggest that tariffs are beginning to increase costs. However, core inflation remained steady, which offered some comfort to investors.
Swanke noted that inflation data suggests tariffs are starting to affect prices. He said the coming weeks will offer clearer insights as companies report how tariffs have impacted their earnings.
Banking stocks saw sharp swings as the second-quarter earnings season began. JPMorgan Chase slipped 0.7% even after raising its 2025 net interest income forecast. Wells Fargo’s shares fell 5.5%, despite posting better profits due to reduced reserves for loan losses. BlackRock reached a new record in assets under management but still saw its stock drop 5.9%.
One exception was Citigroup, which surged 3.7%. The bank reported strong second-quarter results, driven by gains in its trading division. It was Citigroup’s best closing price since the 2008 financial crisis.
On Tuesday, trading volume was 16.82 billion shares on U.S. exchanges. This was slightly below the 20-day average of 17.55 billion shares.
While tech stocks continued to shine, the broader market showed caution. Investors are now looking to upcoming earnings results for clearer signs of how companies are managing costs, tariffs, and consumer demand.
