Nasdaq posts latest record close on Nvidia’s China chip cheer

The Nasdaq Composite (.IXIC), posted its latest record finish on Tuesday, supported by a jump in shares of heavyweight Nvidia, but the other Wall Street benchmarks ended lower as a key inflation report and a flurry of bank earnings failed to excite investors.

It was the fourth session in five that the technology-heavy Nasdaq index has posted a record close, and the eighth time since June 27.

Artificial intelligence-chip leader Nvidia (NVDA.O), was the primary factor behind the Nasdaq’s increase, gaining after it unveiled plans to resume sales of its H20 AI chip to China.

The news buoyed other chipmakers, including Advanced Micro Devices (AMD.O), and Super Micro Computer (SMCI.O), while both the semiconductor index (.SOX), and the S&P technology index (.SPLRCT), also increased.

Rob Swanke, senior investment research analyst at Commonwealth Financial Network, said the Nvidia news meant that some investors, who had moved into other stocks due to technology’s high valuations, were rotating back.

“I would probably say it’s a one-day pop,” he added, noting that investors would be waiting for sales to be reflected in its earnings.

According to preliminary data, the S&P 500 (.SPX), lost 25.68 points, or 0.40%, to end at 6,243.67 points, while the Nasdaq Composite (.IXIC), gained 37.47 points, or 0.18%, to 20,677.80. The Dow Jones Industrial Average (.DJI), fell 437.07 points, or 0.98%, to 44,022.58.

Markets have been buoyant in recent weeks. Investor concerns that the U.S. economy would be tarnished by President Donald Trump’s policies, including major tariff announcements, have started to abate, allowing Wall Street to move higher.

This week was expected to be a significant test of that improving sentiment, with the start of second-quarter earnings season and inflation reports that were forecast to reflect sellers starting to pass on higher tariff-related costs.

The first of these reports showed U.S. consumer prices posted their biggest jump in five months in June, hinting that tariffs may be starting to heat up inflation. Still, underlying inflation stayed moderate, offering some reassurance despite the headline spike.

Meanwhile, Wall Street opened the second-quarter earnings season on a somber note, with banking stocks whipsawing in volatile trade.

JPMorgan Chase (JPM.N), slipped despite raising its 2025 net interest income outlook, while Wells Fargo (WFC.N), fell even as its profit rose on reduced loan-loss reserves. BlackRock (BLK.N), notched a new milestone for assets under management, yet its shares slid.

Bucking the trend, Citigroup (C.N), opens new tab climbed after its traders delivered a windfall that boosted second-quarter profit.