Dow Jones Futures: JPMorgan Beats, CPI Inflation Due After Nvidia, Tesla Slide

Dow Jones futures rose slightly after hours, along with S&P 500 futures and Nasdaq futures, as investors awaited the consumer price index (CPI) inflation data and earnings from major banks, including JPMorgan Chase (JPM), Goldman Sachs (GS), Wells Fargo (WFC), Citigroup (C), Charles Schwab (SCHW), and BlackRock (BLK). The market rally closed mixed on Tuesday, with some up and down moves, as tech stocks like Nvidia (NVDA) and Tesla (TSLA) pulled back from aggressive entries.



JPMorgan Chase reported strong earnings, beating analysts' expectations for both earnings per share and revenue. The bank's earnings growth was driven by robust consumer spending, higher trading activity, and a rebound in dealmaking, supported by a resilient economy. JPMorgan stock flirted with a cup-with-handle breakout on Tuesday, with its relative strength line hitting a new high, and a blue dot indicating a potential buy signal.



The upcoming CPI inflation data, due on Wednesday, is expected to show a moderation in inflation, with core CPI expected to rise 0.3% month-over-month and 2.9% year-over-year. However, investors should be prepared for increased volatility, as the market reaction will depend on the specific data and how it is interpreted. A lower-than-expected inflation print could boost tech stocks like Nvidia and Tesla, as investors may see this as a sign that the Fed's rate hike cycle may be nearing an end or that the economy is stronger than anticipated. On the other hand, a higher-than-expected inflation print could exacerbate the recent slide in tech stocks, as investors may become more concerned about the potential for higher interest rates and the impact on tech valuations.

Nvidia stock fell 1.1% to 131.76 on Tuesday, giving up a modest early gain, as investors awaited the CPI inflation data and the earnings reports from major banks. Tesla stock rebounded from the 10-week line on Friday, but closed down just 20 cents, as investors digested the launch of the refreshed Model Y and the potential impact of the CPI inflation data on the broader market.



In conclusion, the market rally closed mixed on Tuesday, with some up and down moves, as investors awaited the CPI inflation data and earnings from major banks. JPMorgan Chase reported strong earnings, beating analysts' expectations, while tech stocks like Nvidia and Tesla pulled back from aggressive entries. The market reaction to the CPI inflation data will depend on the specific data and how it is interpreted, but investors should be prepared for increased volatility.