Nasdaq Hits Record as Nvidia Gains, Investors Await Inflation Data and Bank Earnings

U.S. stock futures edged lower Tuesday evening as investors prepared for upcoming earnings reports from major banks and awaited the latest wholesale inflation data. Dow Jones Industrial Average futures fell by 105 points, or 0.2%, while S&P 500 and Nasdaq 100 futures each slipped by nearly 0.3%.

During the regular session, the S&P 500 declined 0.4% and the Dow dropped more than 400 points. In contrast, the Nasdaq Composite rose about 0.2% to close at a record high, supported by a 4% increase in Nvidia shares after the company indicated it expects to resume H20 AI chip sales to China soon.

June's consumer inflation report showed a 0.3% monthly increase and a 2.7% annual rate, matching analyst expectations. The data has heightened concerns about the impact of recently announced tariffs. Over the weekend, President Donald Trump announced a 30% tariff on imports from Mexico and the European Union, set to begin August 1.

Joe Brusuelas, chief economist at RSM U.S., said, "Inflation has started a slow climb as signs of tariff-induced inflation are now evident within durable and nondurable imports." He added that the Federal Reserve is likely to remain patient as inflation trends develop.

Investors are looking ahead to Wednesday's producer price index release, with consensus estimates predicting a 0.2% monthly increase. Several Federal Reserve officials, including Richmond Fed President Thomas Barkin and Governor Michael Barr, are scheduled to speak. Earnings reports from Bank of America, Goldman Sachs, Morgan Stanley, and Johnson & Johnson are also expected.