Welcome to the world of stock market madness where Nvidia, the tech giant, is dragging Nasdaq to new record highs, while the rest of the market is sinking into chaos due to inflation and shaky bank earnings! In June, the Consumer Price Index (CPI) rose by 0.3%, leading to an annual inflation rate of 2.7%. The core CPI, which excludes food and energy prices, increased by 0.2%, slightly less than analysts expected but still showing growth compared to May. These figures align with expectations but indicate a rise in inflation compared to the previous month.
On the US stock exchanges, the Dow Jones fell by 0.2%, while the S&P 500 edged up by 0.2%, thanks to a surge in Nvidia shares which jumped over 4.5%. The Nasdaq advanced 0.7%, mainly due to Nvidia’s announcement that it will soon resume shipments of its advanced H20 graphics processors to China, sparking euphoria among investors.
However, it’s not all sunshine and rainbows. Financial reports from major banks brought mixed results. Wells Fargo saw its stock value drop by 4% due to weaker-than-expected interest income. JPMorgan Chase experienced a slight decline despite reporting better-than-expected results, thanks to investment banking revenues. On the flip side, Citigroup’s shares rose about 1% after the bank beat second-quarter estimates.
On Wall Street, the Dow Jones dropped 0.98% or 44 points, the S&P 500 fell 0.40% or 6 points, while the Nasdaq hit a new record high thanks to the rise in Nvidia’s stock price. Shares of other chipmakers like AMD and Super Micro Computer rose over 6%, with the chip sector gaining 1.3% in value.
Inflation and tariffs remain the main worries for investors. The tariff hikes announced by former President Donald Trump are starting to be felt in the economy, further dampening market optimism. European markets also fell, with London’s FTSE down 0.66%, Frankfurt’s DAX down 0.42%, and Paris’s CAC down 0.54%.
The quarterly earnings season is in full swing, and investors are eagerly watching how the situation unfolds. Will the tech sector continue to pull the market up, or will inflation and banking sector troubles crush all hopes? One thing is certain – the stock market is never boring!
If the stock market feels like a rollercoaster ride to you, you’re not far off. So, are you riding the Nvidia hype or worried about inflation and bank troubles? Drop a comment and let’s see who’s right!
