Nvidia Takes Charge as US Stocks Hover Near Record Highs

Nvidia's Impact on US Stocks

U.S. stocks are drifting around their record levels in mixed trading on Tuesday. The S&P 500 was 0.1% higher and nearing its all-time high, while the Dow Jones Industrial Average fell by 167 points, or 0.4%. The Nasdaq composite increased by 0.6%.

Tech Stocks on the Rise

Nvidia, known as Wall Street's most influential stock, climbed 3.7% after reports of government assurance on licenses for its H20 chip. Earlier concerns regarding US restrictions on AI chips could have significantly impacted Nvidia's fiscal outcomes.

Economic Indicators

Inflation remains a pressing concern, having risen to 2.7% from 2.4% last month. This uptick, spurred partly by President Trump’s tariff threats, may affect Federal Reserve policies regarding interest rates. Traders are anticipating at least one rate cut by the year's end.

Market Movements

• JPMorgan Chase fell 1.1% despite strong profit results.
• Citigroup rose 0.8% post earnings.
• Wells Fargo dropped 4.8%, despite outperforming analyst expectations.

Meanwhile, overseas markets showed a mixed response, with a minor slip in European indexes following positive news from Hong Kong.