Nvidia Surge Pushes Nasdaq To Record High Amid Inflation, Dow, S&P Fall

The Nasdaq Composite reached a new record high, driven primarily by a nearly 4% rally in Nvidia shares following the U.S. government's approval of export licenses for its H100 AI chips to China, easing previous restrictions. This tech-led surge contrasted with declines in the broader market, as the S&P 500 and Dow Jones Industrial Average fell due to hotter-than-expected inflation data prompting concerns that the Federal Reserve might maintain higher interest rates longer than anticipated. Inflation rose 2.7% year-over-year in June, leading Treasury yields to climb and dampening sectors sensitive to interest rates such as real estate, utilities, and financials. While bank stocks showed mixed earnings results, with Citigroup up but others like Wells Fargo and JPMorgan Chase down or cautious, technology stocks remained resilient amid growing enthusiasm for AI. Market sentiment reflects uncertainty over future Fed rate cuts, with some officials signaling inflation remains too high for immediate easing. Despite macroeconomic headwinds and tariff concerns, Nvidia's advances and the broader AI hardware sector helped sustain Nasdaq's strength and investor optimism.