Today’s Stock Market in 2-Minutes

By Alex Financials

Tariff‑Fueled Inflation Keeps Fed on Caution

June’s Consumer Price Index (CPI) showed a 0.3% month-over-month rise and a 2.7% increase year-over-year—right in line with forecasts. Core CPI (excluding food and energy) rose 0.2% MoM and 2.9% YoY. Traders are taking this as confirmation that tariff-related inflation is creeping in, which may delay any Federal Reserve rate cuts beyond the widely expected September timeline.

Tech Leads the Charge: Nvidia & AMD Surge

  • Nvidia ($NVDA) soared about 5% after receiving U.S. government approval to resume shipments of its H20 AI chip to China—the stock hit fresh highs and powered the Nasdaq’s rally.

  • AMD ($AMD) also rose ~6–8%, buoyed by similar export license news.

  • The Philadelphia Semiconductor Index climbed around 2.1%, reflecting a broad resurgence in chip-sector optimism.

Overall, tech strength was central to today’s gains, helping push the S&P 500 and Nasdaq to new record highs.

Bank Earnings Mixed: Profit Beats Masked by Outlook Concerns

  • JPMorgan ($JPM) delivered a solid beat on earnings, though net interest income lagged expectations; shares edged slightly higher.

  • Citigroup ($C) reported an impressive ~25% profit rise and also saw its stock gain.

  • Wells Fargo ($WFC) beat on earnings but cut forward guidance, dragging shares down ~5%.

Bank performance was a mixed bag, offering both support and pressure amid broader economic uncertainty.

The Trade Desk ($TTD): Index Boost Ahead

Shares of Trade Desk jumped ~9–15% in pre-market trading, ahead of its formal inclusion in the S&P 500 index this Friday. The move underscores momentum in digital advertising and algorithmic trading spaces.

Macro Backdrop: Tariffs, Bonds, and Global Trade

  • U.S. Treasury yields jumped; the 10-year note reached 4.47‑4.48%, while the 30-year hit 5%, reflecting concerns over tariff-driven inflation .

  • President Trump floated 30% tariffs on goods from the EU and Mexico starting August 1, though markets seem to believe diplomatic interventions could soften the final terms.

  • China’s Q2 GDP grew 5.2%—a beat versus expectations—helping offset some trade negativity.

Global Market Round-Up

  • Europe: FTSE 100 briefly topped 9,000 with European indices modestly higher.

  • Asia: Indian markets advanced—Nifty50 closed around 25,200 and Sensex jumped ~300 points on improving local inflation data.

Key Takeaways for Investors

  1. Tech stocks, especially chipmakers like $NVDA and $AMD, remain the main growth engine.

  2. Inflation remains sticky due to tariffs, likely delaying rate cuts into the year’s second half.

  3. Bank earnings provide mixed signals—strong trading results may be weighed down by interest income softness.

  4. Trade policy volatility continues to cast shadows across global markets.

  5. Passive portfolios (SPY, QQQ) are performing well, but rising yields and geopolitical risk warrant caution.

Final Thoughts

Today’s action underscores a market split: robust gains in tech and passive strategies like SPY and QQQ (see tickers above), contrasted with pressure on financials and bond yields. With tariffs and inflation data shaping policy future, markets may remain volatile. Still, resilient global growth and strong tech momentum could sustain the rally—at least through the summer.

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