Market Update: S&P 500 Wavers as Nasdaq Climbs on Nvidia News
The U.S. stock market today showed a clear divergence in performance Tuesday, July 15th, 2025, with technology stocks powering higher while financial shares dragged down the Dow Jones Industrial Average. The tech-heavy Nasdaq Composite gained 0.74% to close at 20,792.26, reaching another record high, while the Dow fell 0.75% to 44,126.42, shedding over 330 points. The S&P 500 finished nearly flat, dipping just 0.02% to 6,267.26 as gains in technology offset weakness in other sectors.
The markets today were influenced by several key factors, including the latest inflation data, major earnings reports from financial institutions, and significant news from the technology sector. The Consumer Price Index (CPI) for June increased 0.3% month-over-month, putting the annual inflation rate at 2.7%, up from May’s 2.4% but in line with economists’ expectations. Core CPI, which excludes food and energy prices, rose 0.2% for the month, marking the fifth consecutive month it has come in below forecasts.
“The market is more focused on this year-over-year number, but the fact that for five straight months the month-over-month headline CPI number has come in below expectations is meaningful,” said Scott Wren, senior global market strategist at Wells Fargo Investment Institute.
Tech Stocks Surge as Nvidia Announces Resumption of China Sales
The stock market live action was dominated by Nvidia (NVDA), which surged 4.2% to $170.95 after the chip giant announced it would soon resume sales of its H20 AI chips to China. “The U.S. government has assured NVIDIA that licenses will be granted, and NVIDIA hopes to start deliveries soon,” the company said in a statement released Tuesday. The news came just days after CEO Jensen Huang met with President Donald Trump and Chinese government officials.
The development represents a significant shift in U.S. policy, as the Trump administration had halted these sales in April. Analysts estimate the resumption of sales could represent $15-20 billion in additional revenue for Nvidia this year. The H20 GPU was specifically designed to comply with U.S. government restrictions on exports of advanced chips to China.
Other technology stocks also rallied on the news, with Advanced Micro Devices (AMD) jumping 6.7% to $156.06 and Taiwan Semiconductor (TSM) gaining 2.2%. The information technology sector was the only S&P 500 sector solidly higher, up 1.6% for the day.
Financial Stocks Weigh on Dow as Banks Report Mixed Earnings
While tech stocks soared, financial shares dragged down the Dow Jones Industrial Average as several major banks reported earnings. JPMorgan Chase (JPM) dipped 0.3% despite posting better-than-expected second-quarter results driven by strong trading and investment banking revenue. Wells Fargo (WFC) fell nearly 4% after reducing its net interest income guidance, overshadowing its earnings beat.
Citigroup (C) was the lone bright spot among major banks, gaining as much as 3% after topping second-quarter estimates. The financial sector’s weakness was particularly impactful on the Dow, which includes six financial stocks accounting for 20% of the index: JPMorgan Chase, Goldman Sachs (GS), UnitedHealth Group (UNH), Travelers Companies (TRV), American Express (AXP), and Visa (V).
The contrast between the Dow and Nasdaq performance highlights the current market’s bifurcation, with technology continuing to outperform while other sectors struggle.
Apple Partners with MP Materials in $500 Million Rare Earth Deal
In another significant market news today, Apple (AAPL) announced a $500 million deal with Pentagon-backed MP Materials (MP) for a supply of rare earth magnets, marking one of the first U.S. tech companies to centralize its supply chain inside the country. Apple shares gained 1.37% on the news, while MP Materials stock soared 23.54% to an all-time high.
The partnership includes a $200 million pre-payment from Apple for magnets to be delivered starting in 2027. The magnets will be produced at MP’s Fort Worth, Texas facility using materials recycled at the company’s Mountain Pass, California mining complex.
“Rare earth materials are essential for making advanced technology, and this partnership will help strengthen the supply of these vital materials here in the United States,” Apple CEO Tim Cook said in a statement.
The deal comes amid a broader push by Apple to bring iPhone production to the United States following pressure from the Trump administration to reduce electronics manufacturing in China. It also follows MP Materials’ recent multibillion-dollar agreement with the U.S. Department of Defense that will see the Pentagon become MP’s largest shareholder.
Bond Yields Rise, Pressuring Broader Market
Rising yields in the Treasury market contributed to the broader market’s struggles on Tuesday. The 30-year yield climbed above 5.01%, a level it has closed above only nine times in the past 15 years. The 10-year yield approached 4.5%. Higher yields make bonds more attractive for new buyers and can drive capital away from stocks.
The rising yields come as President Donald Trump continues to call for the Federal Reserve to lower interest rates, which some analysts suggest could backfire. “All this political pressure on the makers of monetary policy could actually backfire on Trump,” wrote Steven Ricchiuto, chief U.S. economist at Mizuho Securities USA. “Easing policy with an economy already on an above-trend growth trajectory and with the underlying trend rate of inflation stuck at 3%, not 2%, will unleash inflation expectations.”
Looking Ahead: Key Earnings and Economic Data
Investors are now turning their attention to a busy earnings calendar for the remainder of the week. GE Aerospace (GE) is scheduled to release second-quarter results on Thursday, July 17, before the market opens. Analysts expect earnings of $1.43 per share on revenues of $9.7 billion, representing year-over-year growth of 19.2% and 17.9%, respectively.
Netflix (NFLX) is also among the major companies reporting this week, with investors eager to see if the streaming giant can maintain its subscriber growth momentum. Other notable earnings reports to watch include Taiwan Semiconductor on Thursday and several other financial institutions throughout the week.
On the economic front, the New York Fed’s Empire State Manufacturing index jumped to 5.5 in July, a nearly 22-point improvement over the prior month and much better than the -9.5 forecast. The gauge showed expansion in new orders, shipments, and inventories, while the employment index also improved, rising to 9.2.
As the stock market today demonstrated, investors continue to navigate a complex landscape of inflation concerns, corporate earnings, and geopolitical developments. The divergence between technology stocks and the broader market suggests that selective stock picking may remain crucial in the current environment.
Market Update: S&P 500 Wavers as Nasdaq Climbs on Nvidia News
The U.S. stock market today showed a clear divergence in performance Tuesday, July 15th, 2025, with technology stocks powering higher while financial shares dragged down the Dow Jones Industrial Average. The tech-heavy Nasdaq Composite gained 0.74% to close at 20,792.26, reaching another record high, while the Dow fell 0.75% to 44,126.42, shedding over 330 points. The S&P 500 finished nearly flat, dipping just 0.02% to 6,267.26 as gains in technology offset weakness in other sectors.
The markets today were influenced by several key factors, including the latest inflation data, major earnings reports from financial institutions, and significant news from the technology sector. The Consumer Price Index (CPI) for June increased 0.3% month-over-month, putting the annual inflation rate at 2.7%, up from May’s 2.4% but in line with economists’ expectations. Core CPI, which excludes food and energy prices, rose 0.2% for the month, marking the fifth consecutive month it has come in below forecasts.
“The market is more focused on this year-over-year number, but the fact that for five straight months the month-over-month headline CPI number has come in below expectations is meaningful,” said Scott Wren, senior global market strategist at Wells Fargo Investment Institute.
Tech Stocks Surge as Nvidia Announces Resumption of China Sales
The stock market live action was dominated by Nvidia (NVDA), which surged 4.2% to $170.95 after the chip giant announced it would soon resume sales of its H20 AI chips to China. “The U.S. government has assured NVIDIA that licenses will be granted, and NVIDIA hopes to start deliveries soon,” the company said in a statement released Tuesday.
The development represents a significant shift in U.S. policy, as the Trump administration had halted these sales in April. Analysts estimate the resumption of sales could represent $15-20 billion in additional revenue for Nvidia this year.
Other technology stocks also rallied on the news, with Advanced Micro Devices (AMD) jumping 6.7% to $156.06 and Taiwan Semiconductor (TSM) gaining 2.2%.
Financial Stocks Weigh on Dow as Banks Report Mixed Earnings
While tech stocks soared, financial shares dragged down the Dow Jones Industrial Average as several major banks reported earnings. JPMorgan Chase (JPM) dipped 0.3% despite posting better-than-expected second-quarter results driven by strong trading and investment banking revenue. Wells Fargo (WFC) fell nearly 4% after reducing its net interest income guidance, overshadowing its earnings beat.
Citigroup (C) was the lone bright spot among major banks, gaining as much as 3% after topping second-quarter estimates.
The contrast between the Dow and Nasdaq performance highlights the current market’s bifurcation, with technology continuing to outperform while other sectors struggle.
Apple Partners with MP Materials in $500 Million Rare Earth Deal
In another significant market news today, Apple (AAPL) announced a $500 million deal with Pentagon-backed MP Materials (MP) for a supply of rare earth magnets, marking one of the first U.S. tech companies to centralize its supply chain inside the country. Apple shares gained 1.37% on the news, while MP Materials stock soared 23.54% to an all-time high.
The partnership includes a $200 million pre-payment from Apple for magnets to be delivered starting in 2027. The magnets will be produced at MP’s Fort Worth, Texas facility using materials recycled at the company’s Mountain Pass, California mining complex.
“Rare earth materials are essential for making advanced technology, and this partnership will help strengthen the supply of these vital materials here in the United States,” Apple CEO Tim Cook said in a statement.
The deal comes amid a broader push by Apple to bring iPhone production to the United States following pressure from the Trump administration to reduce electronics manufacturing in China. It also follows MP Materials’ recent multibillion-dollar agreement with the U.S. Department of Defense that will see the Pentagon become MP’s largest shareholder.
Bond Yields Rise, Pressuring Broader Market
Rising yields in the Treasury market contributed to the broader market’s struggles on Tuesday. The 30-year yield climbed above 5.01%, a level it has closed above only nine times in the past 15 years. The 10-year yield approached 4.5%. Higher yields make bonds more attractive for new buyers and can drive capital away from stocks.
The rising yields come as President Donald Trump continues to call for the Federal Reserve to lower interest rates, which some analysts suggest could backfire. “All this political pressure on the makers of monetary policy could actually backfire on Trump,” wrote Steven Ricchiuto, chief U.S. economist at Mizuho Securities USA. “Easing policy with an economy already on an above-trend growth trajectory and with the underlying trend rate of inflation stuck at 3%, not 2%, will unleash inflation expectations.”
Looking Ahead: Key Earnings and Economic Data
Investors are now turning their attention to a busy earnings calendar for the remainder of the week. GE Aerospace (GE) is scheduled to release second-quarter results on Thursday, July 17, before the market opens. Analysts expect earnings of $1.43 per share on revenues of $9.7 billion, representing year-over-year growth of 19.2% and 17.9%, respectively.
Netflix (NFLX) is also among the major companies reporting this week, with investors eager to see if the streaming giant can maintain its subscriber growth momentum.
On the economic front, the New York Fed’s Empire State Manufacturing index jumped to 5.5 in July, a nearly 22-point improvement over the prior month and much better than the -9.5 forecast. The gauge showed expansion in new orders, shipments, and inventories, while the employment index also improved, rising to 9.2.
As the stock market today demonstrated, investors continue to navigate a complex landscape of inflation concerns, corporate earnings, and geopolitical developments. The divergence between technology stocks and the broader market suggests that selective stock picking may remain crucial in the current environment.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.