DJI: Dow Jones Washes Out 430 Points as Inflation Data, Bank Earnings Fan Concerns

By the power of a single company the Dow’s tech-heavy peer didn’t flip underwater — Nvidia rose 4% and helped the Nasdaq end at a record. The S&P 500? In the red.

📉 Inflation & Banks Shake Confidence

• The Dow Jones Industrial Average DJI tumbled 436 points, or 1%, on Tuesday, after June’s hotter-than-expected inflation data and an underwhelming start of the earnings season (thanks, banks!) fanned worries about the economic outlook.
• Consumer prices in the US rose 0.3% month-on-month, bumping the annual clip to 2.7%, the highest level this year. The print reignited fears that the Fed’s much-anticipated rate cuts may stay on ice a bit longer.
• Big bank results: Wells Fargo WFC sank over 5% after slashing its net interest income forecast despite topping profit estimates. JPMorgan JPM dipped too on a double-digit slide in earnings and revenue, while BlackRock shed nearly 6% after missing revenue targets.

📊 S&P 500 Tumbles from Record High

• The S&P 500 slipped 0.4% on the day, retreating from a fresh record session high hit earlier in the day as financials and defensives lagged.
• Expectations for S&P 500 companies aren’t too grand this season with growth rate consensus pinned at 4.3% year-on-year. Can the Magnificent Seven save the day (or the season?) once again?
• Amid the sea of red, however, one bright spot stood out. Chips. Nvidia stock NVDA jumped 4% after CEO Jensen Huang said the company expects to “soon” resume sales of its H20 GPU chips to China.

🟢 Nasdaq Logs New Record in the Books

• The Nasdaq Composite IXIC edged up 0.2% to close at a record 20,677.80, logging its eighth all-time high for the year as traders piled into tech despite the inflation jitters.
• Nvidia’s strength was the hero, helping the tech-heavy index stay in the green even as the Dow tanked and the S&P 500 lost steam.
• Next up: the second-quarter earnings season is nearing fever pitch, with Wall Street bracing for more bank reports and big-tech updates. Against that backdrop, the ongoing question remains — will sticky inflation spoil the party and force Fed policymakers to stay their hand when they meet later this month?