Leading technology firms are grappling with complex geopolitical dynamics and supply chain challenges, while key economic data from Europe shows a modest rise in inflation. Meanwhile, a major airline is set to resume flights to Iran, and China continues to advocate for diplomatic solutions in the Middle East.
NVIDIA (NVDA) CEO Jensen Huang provided insights into the company's strategic outlook, particularly concerning its operations in China. Huang stated that it will take time to ramp up NVIDIA's supply chain, but he is committed to accelerating its recovery in the coming months. He highlighted that "open and stable" relations are the most crucial messages he received from Chinese leadership meetings, underscoring NVIDIA's continued investment in the region. The CEO also confirmed that the NVIDIA H20 chip has been released from its ban, and he is aware of discussions linking the H20 to rare earth negotiations, though he possesses no privileged information on US-China negotiations. Huang also expressed admiration for China's computer science capabilities, especially its software, and his interest in Xiaomi cars, noting the surprising growth of EVs in China. He also introduced the new RTX Pro chip, designed for NVIDIA Omniverse applications like digital twins and smart factories.
In the semiconductor industry, ASML (ASML)'s CFO suggested that lifting chip restrictions on China would significantly boost demand for their products. This indicates the potential for increased revenue if geopolitical tensions ease and trade barriers are removed.
Economically, Italy's final Consumer Price Index (CPI) EU Harmonised for June showed a year-over-year increase of 1.8%, slightly above the estimated 1.7%, and up from the previous 1.7%. The month-over-month CPI EU Harmonised remained at 0.2%, consistent with estimates and the prior month. Similarly, the CPI NIC (including tobacco) saw a 1.7% year-over-year increase, matching estimates and the previous figure, with a 0.2% month-over-month rise.
In geopolitical news, Emirates announced it would restart flights to and from Tehran starting July 18, 2025. This comes as China's Foreign Minister expressed strong support for Iran, stating China opposes the use or threat of force and advocates for resolving differences through dialogue. The Minister affirmed China's appreciation for Iran's diplomatic efforts to achieve peace and its commitment not to develop nuclear weapons, while respecting its right to peacefully use nuclear energy. China also pledged to continue supporting Iran in safeguarding its sovereignty and resisting power politics.
In the commodities market, copper prices remained stable as traders assessed the upcoming US Consumer Price Index and the ongoing effects of tariffs. Meanwhile, the publication of Producer Price Index (PPI) and Services Producer Price Indices (SPPI) data in the UK remains paused due to issues with chain-linking methods. Lastly, Ukrainian President Zelenskiy reported that energy infrastructure was hit in an overnight attack.
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.