Nasdaq Hits New High, But Other Market Indices End in Losses Despite Positive Earnings and Low Inflation

The Nasdaq Composite reached a new record high, driven by tech stocks, while the S&P 500 and Dow fell 0.4% and 1%, respectively. Despite a tame inflation report and healthy earnings from banks, the market ended with losses.

The Nasdaq Composite (.IXIC) reached a new record high on Tuesday, July 15, 2025, as tech stocks led the way. The index gained 0.59%, closing at 20,762.84. This performance was driven primarily by Nvidia (NVDA.O), which surged 4% after announcing plans to resume sales of its H20 AI chip to China [1]. This development, which reverses a ban imposed in April by the Trump administration, is seen as a significant breakthrough in US-China trade relations [2].

Meanwhile, the S&P 500 (.SPX) and the Dow Jones Industrial Average (.DJI) both ended the day with losses. The S&P 500 fell 0.09%, closing at 6,262.63, while the Dow dropped 0.76%, closing at 44,123.08. The market's performance was mixed, with some sectors, such as technology, showing strength, while others, like banking, faced volatility.

The second-quarter earnings season began on a somber note for banking stocks. While Wells Fargo (WFC.N) and JPMorgan Chase (JPM.N) reported mixed results, Citigroup (C.N) stood out by climbing 3.4% after its traders delivered a windfall that boosted second-quarter profit [1]. The KBW Bank Index (.BKX) sank to a two-week low, down 1.1% [1].

The market's reaction to the latest inflation report was mixed. While the consumer price index (CPI) in June increased 0.3% on the month, putting the annual inflation rate at 2.7%, the market was more focused on the year-over-year number [3]. The core CPI, which excludes food and energy prices, grew 0.2% month over month, slightly less than expected [3]. Despite the tame inflation report, the market remained cautious, with investors taking profits after the recent good run [1].

The Nasdaq's gains came primarily from Nvidia, which rose 4% after unveiling plans to resume sales of its H20 AI chip to China. The news buoyed other chipmakers, with Advanced Micro Devices (AMD.O) and Super Micro Computer (SMCI.O) rising more than 6.7% each [1]. The semiconductor index (.SOX) also advanced 1.5%, to its highest point in a year, while the S&P technology index (.SPLRCT) climbed by the same percentage to hit a record high [1].

The market's performance highlights the ongoing tension between positive developments, such as the resumption of Nvidia's chip sales to China, and broader economic concerns, including inflation and trade tensions. As the second-quarter earnings season continues, investors will closely monitor the results of major companies to gauge the health of the economy and the potential impact on stock prices.

References:
[1] Reuters. (July 15, 2025). Nasdaq sp 500 futures gain ground with earnings inflation spotlight. Retrieved from https://www.reuters.com/business/nasdaq-sp-500-futures-gain-ground-with-earnings-inflation-spotlight-2025-07-15/
[2] AInvest. (July 25, 2025). Nasdaq composite index rises 0.26% from Monday’s close. Retrieved from https://www.ainvest.com/news/nasdaq-composite-index-rises-0-26-china-trade-progress-2507/
[3] CNBC. (July 15, 2025). Stock market today live updates. Retrieved from https://www.cnbc.com/2025/07/15/stock-market-today-live-updates.html