The U.S. equity markets saw mixed activity in the wake of fresh inflation data and ongoing tariff concerns. The S&P 500 declined 0.4% to close at 6,243.76, reflecting broad-based selling as nearly 90% of index components ended lower. The Dow Jones Industrial Average registered its steepest drop in a month, falling 1% (down 436 points) to 44,023.29. In stark contrast, robust gains in the technology sector lifted the Nasdaq Composite 0.2% to a new record close at 20,677.80, powered in large part by Nvidia’s rally. The Russell 2000, representing small-cap stocks, shed 2% to finish at 2,205.05.
Macroeconomic Reports
Today’s economic calendar was dominated by the release of June’s Consumer Price Index (CPI), which showed a 0.3% month-over-month increase and a 2.7% rise year-over-year, accelerating from May’s 2.4%. The uptick came in line with consensus estimates but was significant enough to diminish hopes for a swift Federal Reserve pivot to rate cuts. Core CPI (excluding food and energy) rose 0.2%, slightly below expectations. Economists noted the first meaningful signs of tariff-induced price pressures emerging in key consumer goods categories such as clothing and toys.
Tariffs and Trade Developments
Tariff headlines once again exerted market influence as President Donald Trump reiterated threats of broad new measures, including 100% tariffs on Russian goods should diplomatic progress stall and new 30% tariffs under consideration. The latest CPI data indicated initial pass-through of these tariffs into consumer inflation, something keenly noted by market strategists. Internationally, Trump continues to pressure major trading partners, amplifying the overall climate of uncertainty around global trade.
Federal Reserve, Yield Curve, and Interest Rates
Following the inflation print, bond yields rose as investors dialed back expectations for imminent rate cuts. The 10-year Treasury yield advanced over 5 basis points to 4.50%, marking its highest in a month, while the 30-year yield ticked up to 5.02%, the highest since late May. No major FOMC decisions were issued today, but market participants continue to anticipate commentary from Fed officials throughout the week as inflation and tariffs complicate the policy backdrop.
Major Movers and Corporate News
NVIDIA (NVDA)
Nvidia surged 4% to a new all-time high, cementing its position as the world’s most valuable company with a market capitalization of roughly $4.14 trillion. The rally followed news that the Trump administration would allow Nvidia to resume sales of its high-demand AI chips, particularly the H20 series, to China after high-level discussions. This development represents a meaningful alleviation of geopolitical risk and opens renewed access to a critical growth market, fueling bullish sentiment across the broader AI and chip sectors.
Tesla (TSLA)
Tesla shares dipped modestly despite the company’s formal entry into the Indian market, where it opened its first showroom in Mumbai. Analyst sentiment remains mixed amid broader concerns over the slowing global pace of electric vehicle adoption. Additionally, management turnover in North American sales made headlines, contributing to the stock’s muted response. Wall Street analysts maintain a cautious outlook, with the consensus rating hovering at ‘Hold’.
Meta Platforms
Meta was relatively quiet in today’s session, lacking headline developments and dropped 1.46% to close at $710.39.
McDonald’s (MCD)
No material corporate news or earnings updates moved McDonald’s shares today. The stock closed at $299.62, -.75%, reflecting consumer staples’ defensive posture during a day marked by risk-off sentiment in most non-tech areas.
Oracle (ORCL)
Oracle shares closed at $234.96, +2.48%.
Palantir Technologies (PLTR)
Palantir traded with the broader software cohort and did not register any notable company-specific news closing at $148.58, -.38%.
Rio Tinto Group (RIO)
Rio Tinto’s U.S.-traded ADRs reflected the global mood, ending 2.26% lower amid modestly weaker demand signals from China and persistent trade tensions. There were no major announcements from the company today.
Precious Metals, Energy, and Cryptocurrency Markets
– Gold prices edged slightly lower to $3,331.80 as rising Treasury yields curbed demand for non-yielding assets.
– Silver prices followed gold’s lead, retracing recent gains on the back of higher yields and a stronger dollar and closing at $38.065.
– Crude oil closed at $66.83/bbl, +.47%.
– Bitcoin traded in a volatile hitting a new high of $120,030.98, but has now traded down to $117,923.36.
