Nvidia takes the lead! US stocks benefit from falling inflation data, S&P 500 and Nasdaq rise together.

The latest inflation data from the United States met expectations, coupled with strong performance from chip giant Nvidia, leading to a rise in U.S. stocks on Tuesday. The S&P 500 index increased by 0.5%, and the Nasdaq Composite index rose by 0.8%, continuing the recent optimistic sentiment. Meanwhile, the Dow Jones Industrial Average showed a lackluster performance, remaining nearly flat.

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CPI data meets expectations: Year-on-year increase of 2.7%, Month-on-month increase of 0.3%

In June, the Consumer Price Index (CPI) in the United States increased by 0.3% month-over-month and has an annual increase rate of 2.7%, which aligns with market expectations from the Dow Jones survey. As for the core CPI, excluding food and energy prices, it rose by 0.2% month-over-month, slightly lower than expected; the annual increase is 2.9%, which is also in line with estimates.

Scott Wren, a senior global market strategist at Wells Fargo Investment Institute, stated that although the market is focused on year-over-year data, the more critical point is that "for five consecutive months, the CPI monthly growth rate has been below expectations, which is an important signal."

Nvidia drives the momentum of tech stocks, restarting positive news for shipments to China.

Nvidia's stock price rose more than 4% in pre-market trading, becoming a driving force behind the overall market. The company stated that it expects to resume shipments of its H20 GPU to the Chinese market, which boosted market sentiment. The rebound in tech stocks has also led investors to have higher expectations for the upcoming earnings season.

Bank financial reports show mixed performance: Wells Fargo lowers outlook, JPM slightly declines.

Major financial stocks released their earnings reports on Tuesday, with mixed performances. Although Wells Fargo exceeded profit expectations, its stock price fell by 2% due to a downgrade in its net interest income guidance. JPMorgan's second-quarter earnings report beat expectations, mainly due to strong performance in trading and investment banking, yet its stock price still dropped by 0.3%. Citigroup saw a slight increase in stock price due to better-than-expected results. Overall, the earnings season has just begun, and the performance of the financial sector suggests that the market will still be full of uncertainties.

The market expects the earnings season to boost, but growth expectations are not high.

Investors generally hope that the second quarter financial reports can further boost the stock market, especially under the condition that the S&P 500 has already reached an all-time high. However, according to FactSet data, the estimated year-on-year earnings growth for S&P 500 companies in the second quarter is only 4.3%, which would be the lowest growth rate since the fourth quarter of 2023. Such a low base may also become a potential driving force for the stock market to further advance, provided that corporate performance exceeds expectations.

Trump's tariff threats do not hinder the pump momentum, the market focuses on data and earnings reports.

Despite U.S. President Trump threatening to impose a 30% tariff on EU and Mexican goods starting August 1, the market reacted limitedly. On Monday, U.S. stocks still saw a slight rise, indicating that investors are currently more focused on inflation trends and upcoming corporate earnings reports.

This article is led by Nvidia! The US stock market benefits from the decline in inflation data, with the S&P 500 and Nasdaq both rising. First appeared in Chain News ABMedia.