Stocks were mixed Tuesday morning as the earlier boost from Nvidia shares failed to hold as investors digested the first round of big bank earnings reports and the latest U.S. inflation reading.
The Dow Jones Industrial Average (NYSE: DIA) lost over 300 points, and the broader market S&P 500 Index (NYSE: SPY) slipped below the flatline after opening at a record high on Tuesday. The tech-heavy Nasdaq Composite (NASDAQ: QQQ), meanwhile rose over 0.5% after a series of artificial intelligence announcement from major players such as Nvidia (NASDAQ: NVDA), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Amazon (NASDAQ: AMZN) continued the sector's explosive momentum.
Taking up much of the spotlight, consumer prices rose in June mostly in-line with economist consensus as President Donald Trump's tariff policies begin to show in the U.S. economy. The month's headline consumer price index reading rose 0.3% over May and 2.7% annually, the Bureau of Labor Statistics reported Tuesday, with the year-over-year clip representing the highest reading since February.
Core CPI, which excludes food and energy prices, rose 0.2% in June and 2.9% year-over-year, with the annual rate coming in-line with estimates.
Elsewhere, some of Wall Street's largest banks reported their second-quarter earnings results Tuesday morning. Shares of Citigroup (NYSE: C) rose higher after the bank saw its quarterly net income climb 25% annually to $4.02 billion as market volatility from Trump's "Liberation Day" rout and then ultimate comeback benefitted the bank's equity and fixed income trading profits. JPMorgan Chase (NYSE: JPM) also posted better-than-expected trading and investment banking revenue, while Wells Fargo (NYSE: WFC) shares came under pressure after the bank lower annual net income guidance overshadowed its earnings beat.
"The U.S. economy remained resilient in the quarter," JPM CEO Jamie Dimon said in a the release. "The finalization of tax reform and potential deregulation are positive for the economic outlook. However, significant risks persist -- including from tariffs and trade uncertainty, worsening geopolitical conditions, high fiscal deficits and elevated asset prices."
The second-quarter earnings season starts as Wall Street is already trading at record highs, even as the White House continues to issue new higher-than-expected tariff rates on key trading partners like Canada, Mexico, the European Union, Brazil, Japan and South Korea in recent days, effective Aug. 1. Another round of big banks earnings from Goldman Sachs (NYSE: GS), Bank of America (NYSE: BAC) and Morgan Stanley (NYSE: MS) are due out Wednesday morning.