FX.co ★ US Stocks Erase Gains

On Tuesday, US stock indices primarily declined as investors continued to evaluate the potential impact of tariffs set to be implemented by the US and the Federal Reserve's policy direction. The S&P 500 remained unchanged after achieving a new all-time high earlier in the day, whereas the Dow Jones Industrial Average dropped by 200 points. While headline inflation increased in June as anticipated, the core inflation rate fell slightly short of expectations. Nonetheless, market participants largely expect the Federal Reserve to maintain current interest rates this month, as the Federal Open Market Committee (FOMC) is anticipated to perceive continued inflationary risks due to the tariffs. White House representatives indicated ongoing trade negotiations with the European Union, Japan, and South Korea, following the imposition of significant levies on these regions, which could lead to noticeable price hikes in August. Shares of JPMorgan and Wells Fargo declined markedly after releasing their second-quarter results, whereas Citibank outperformed its banking peers following its earnings announcement. Meanwhile, Nvidia saw a 4% increase as the US eased restrictions on certain export controls to China, contributing to the Nasdaq 100's 0.6% rise.