U.S. equities opened divergently on Tuesday (July 15), with the Nasdaq Composite reaching an intraday record high as chip giant Nvidia surged to fresh peaks. The advance followed U.S. government assurances to resume some AI chip exports to China. Meanwhile, June CPI rose 2.7% year-on-year, signaling emerging tariff impacts. Investors weighed earnings reports from major financial institutions.

The Dow Jones Industrial Average dipped 13.31 points (0.03%) to 44,446.34, while the Nasdaq climbed 179.52 points (0.87%) to 20,819.85. The S&P 500 gained 28.75 points (0.46%) to 6,297.31. Monday's modest gains came despite President Trump's threat of 30% tariffs on the EU and Mexico effective August 1, with markets anticipating negotiated reductions.

Nvidia shares soared after the company confirmed imminent resumption of H20 AI chip sales to China. "The U.S. government has committed to issuing licenses," Nvidia stated Tuesday, adding it "looks forward to commencing deliveries promptly." Investors now focus on the unfolding earnings season, hoping robust Q2 results will sustain equities at historic levels. Early bank reports showed Wells Fargo exceeding profit estimates but trimming net interest income guidance, while JPMorgan Chase outperformed on strong trading and investment banking revenue.

Pre-earnings expectations remained muted. FactSet data projects 4.3% blended year-over-year profit growth for S&P 500 constituents. "Trump's renewed tariff threats could push rates beyond current expectations," noted Dan Greenhaus, chief strategist at Solus Alternative Asset Management. "A market pause seems prudent after our historic rebound."

Trade tensions intensified as Trump's weekend threats surpassed April's proposed 20% EU tariff rate. However, Monday's willingness to negotiate bolstered expectations for moderated levies. Japan seeks high-level talks this Friday, while the EU and Mexico continue tariff discussions. EU Trade Commissioner Maros Sefcovic warned of €72 billion ($84 billion) in retaliatory tariffs if negotiations collapse. Brazil reportedly seeks tariff reductions from 50% to 30% with implementation delays. "Europe's higher apparent tariff burden serves as pre-August 1 negotiation leverage," observed Nomura economist Andrzej Szczepaniak.

Tariff effects surfaced in June inflation data. The consumer price index rose 2.7% annually and 0.3% monthly, matching forecasts. Core CPI excluding food and energy edged up 0.2% monthly, below the 0.3% estimate. Underlying inflation undershot projections for a fifth consecutive month, dragged by declining auto prices. Tariff-sensitive categories showed acceleration: recreational goods jumped 0.8% (versus 0.4% in prior months), household items rose 1%, and apparel gained 0.4%. Real average weekly earnings grew 0.7% annually but fell 0.4% monthly.

The core CPI miss reignited debates on tariff transmission. While toys, furniture, and apparel prices firmed—suggesting cost pass-through—new and used vehicle prices declined. "Are tariffs truly impacting consumer prices?" questioned analysts, noting some firms shielded consumers through pre-tariff stockpiling and margin compression. The data may amplify pressure for Federal Reserve rate cuts, though policymakers remain divided on whether tariffs represent transient or persistent inflation drivers.

"These figures won't spur pre-September rate cuts amid tariff uncertainty," commented BMO's Ian Lyngen. Principal Global's Seema Shah noted tariffs are "seeping into core goods prices," while CIBC's Katherine Judge predicted "effects will emerge as inventories deplete." Rate strategists highlighted market pricing for CPI above 3% through mid-2026, suggesting potential recalibration of cut expectations.

Separately, President Trump will unveil a $70 billion AI and energy investment plan in Pennsylvania. An anonymous official disclosed plans covering data centers, power infrastructure upgrades, and AI training programs with private-sector participation.

**Stock Spotlight** - Nvidia hit record highs on U.S. export license assurances. - Tesla debuted its first Indian showroom in Mumbai, targeting the world's third-largest auto market despite 2.5% EV penetration and sub-$20,000 average prices. - Microsoft's 2025 sustainability report revealed a 168% energy consumption surge and 23.4% carbon increase from AI expansion. - Apple secured a $500 million rare earth supply deal with Pentagon-backed MP Materials for Texas-based magnet production. - Google committed $25 billion for data center and AI infrastructure across PJM Interconnection grid states, plus $3 billion for Pennsylvania hydro upgrades. - AMD may regain approval for MI308 chip exports. - Ericsson's Q2 sales fell 6% year-on-year, missing estimates. - TSMC is projected to post record 53% fiscal Q2 profit growth.