FX.co ★ Dow, S&P 500 Drop After June CPI

On Tuesday, the stock market presented a mixed response as investors analyzed June's inflation figures, recent major bank earnings, and the announcement that Nvidia might restart chip sales to China. The S&P 500 declined by 0.4%, while the Dow Jones Industrial Average decreased by 436 points (or 1%), particularly impacted by the drop in financial stocks. Conversely, the Nasdaq 100 experienced a slight increase of 0.1%, bolstered by a 4% rise in Nvidia's stock. The Consumer Price Index for June increased by 0.3% from the previous month and by 2.7% year-over-year, heightening worries that President Trump's proposed 30% tariffs on the European Union and Mexico could further escalate inflation. Although the CPI met projections, it nonetheless intensified anxieties that tariff-induced pricing pressures might be surfacing. Wells Fargo saw a decline of 5.5% and JPMorgan dropped by 0.9% following their mixed earnings reports, whereas Citigroup defied the downward trend, rising by 3.8% due to strong performance and a share buyback initiative. As earnings season progresses, Wall Street maintains a cautious stance, with expectations tempered for S&P 500 earnings growth and increasing concern over potential Federal Reserve policy adjustments amidst trade and inflation challenges.