The stock market experienced a mixed day on Tuesday, July 15, 2025, as investors grappled with a fresh inflation report and a wave of major bank earnings. The Dow Jones Industrial Average suffered its worst day in a month, dropping 436.36 points, or 0.98%, to close at 44,023.29. Meanwhile, the S&P 500 eased 0.40% to 6,243.76, retreating from an earlier record high. In contrast, the Nasdaq Composite defied the downward trend, posting its latest record close by gaining 37.47 points, or 0.18%, to finish at 20,677.80. This marked the fourth record finish in five sessions and the eighth since June 27, 2025.
The Nasdaq’s resilience was largely fueled by a 4% surge in shares of Nvidia, the artificial intelligence chip leader. The company announced plans to soon resume deliveries of its H20 GPU sales to China, a move that buoyed the semiconductor sector broadly. Other chipmakers such as Advanced Micro Devices and Super Micro Computer saw their shares climb more than 6.4%, while the semiconductor index rose 1.3% to its highest level in a year. Likewise, the S&P technology index also gained 1.3%, hitting a record high alongside the Nasdaq.
Rob Swanke, senior investment research analyst at Commonwealth Financial Network, described the Nvidia-driven rally as likely a "one-day pop," cautioning that investors would be watching closely for the sales impact to show up in upcoming earnings reports. "The picture from inflation this morning, coming in a little bit higher than expected but pretty much in line, gives you some sense that the tariffs are starting to flow through into the economy," Swanke added, referring to the latest inflation data.
The June consumer price index (CPI) report, released Tuesday, showed a 0.3% increase month over month, pushing the annual inflation rate to 2.7%, matching economists’ expectations. Core CPI, which excludes volatile food and energy prices, rose 0.2% for the month and 2.9% year over year, both figures in line with forecasts. Despite the modest rise, the data represented the biggest monthly jump in five months, hinting that tariffs imposed by the U.S. government might be starting to heat up inflation.
President Donald Trump announced on Saturday, July 12, 2025, that the U.S. would impose a 30% tariff on goods from the European Union and Mexico starting August 1, 2025. This announcement has raised concerns among economists and investors alike. Matthew Ryan, head of market strategy at global financial services firm Ebury, noted, "The latest U.S. inflation report practically confirmed that President Trump's tariffs acted to push up consumer prices in June. While there was a mild miss in the core number, both the main and underlying inflation measures are now printing at their highest levels in four months. The big fear for Fed officials is that stormier waters lie ahead, as not only is there a time lag between the tariffs and an increase to prices, but additional tariff hikes on 1st August would almost certainly herald further inflationary pressures ahead." Skyler Weinand, chief investment officer of Regan Capital, echoed this sentiment, saying, "It's highly likely that a tariff-driven inflation reckoning is coming." Mexican President Claudia Sheinbaum responded on Tuesday, stating that Mexico will take action if an agreement with Washington regarding the new tariffs is not reached by the August 1 deadline.
On the corporate earnings front, the reaction was mixed and somewhat volatile. Wells Fargo’s shares fell more than 5% despite beating earnings expectations, as the bank lowered its net interest income guidance, raising investor concerns. JPMorgan Chase, which posted better-than-expected second-quarter results driven by strong trading and investment banking revenue, saw its shares dip 0.7%, even as it raised its net interest income outlook for 2025. BlackRock, despite hitting a new milestone for assets under management, slipped nearly 6% after missing quarterly revenue estimates.
Citigroup bucked the downward trend in financials, climbing 3.7% to its highest finish since the global financial crisis. The bank’s traders delivered a windfall that boosted second-quarter profits, providing a rare bright spot amid the otherwise cautious market sentiment. Overall, the S&P 500 is projected to post a blended earnings growth rate of 4.3% year over year for the second quarter, the lowest rate since the fourth quarter of 2023, according to FactSet data.
Trading volume on U.S. exchanges was slightly below average, with 16.82 billion shares changing hands compared to the 17.55 billion average over the past 20 trading days. Despite recent market buoyancy, investor concerns about the economic effects of tariff policies and inflation remain palpable, especially as the second-quarter earnings season unfolds and companies begin to report how tariff-related costs are impacting their bottom lines.
As the market digests these developments, the divergence between the tech-heavy Nasdaq’s record-setting momentum and the declines in traditional blue-chip and financial stocks highlights the evolving landscape of investor confidence. The technology sector’s strength, led by Nvidia and other chipmakers, suggests optimism about the growth potential in AI and semiconductors, even as broader economic uncertainties loom.
Tuesday’s market activity underscores the delicate balance investors face: navigating the immediate impact of inflation and tariffs while looking ahead to earnings results that could either reassure or unsettle confidence further. With tariffs set to take effect in just over two weeks, all eyes will be on how companies adapt and whether inflation pressures intensify or ease in the months ahead.