Nasdaq reaches new peaks as tech rally continues
Technology stocks drive fresh record highs while banking sector delivers mixed earnings results amid inflation concerns.
Nvidia leads tech sector to fresh highs
The Nasdaq Composite has notched up another record high, marking its fourth gain in five sessions as technology stocks maintained their impressive momentum. The rally was spearheaded by Nvidia, which surged 4% after announcing plans to resume chip sales to China, providing fresh optimism for the semiconductor sector.
This latest advance underscores the market's continued appetite for technology stocks, despite growing concerns about valuations. The chip giant's move to re-enter the Chinese market represents a significant development, particularly given the ongoing trade tensions between the world's two largest economies.
Investors appear to be betting that Nvidia's strategic pivot will unlock new revenue streams and support the company's dominant position in artificial intelligence (AI).
The semiconductor rally has broader implications for the technology sector, with chip stocks providing a catalyst for wider market gains. This momentum reflects the ongoing digitisation trend and growing demand for AI-powered solutions across various industries.
Banking sector delivers mixed signals as earnings season begins
The start of earnings season has produced a decidedly mixed picture for financial stocks. Citigroup emerged as a standout performer, climbing 3.7% after delivering a robust second-quarter (Q2) trading performance that exceeded market expectations. The bank's strong results highlighted the benefits of volatility for trading revenues.
However, other major financial institutions struggled to maintain momentum following their results. JPMorgan, Wells Fargo, and BlackRock all declined after reporting, suggesting that investors remain cautious about the sector's outlook. This divergence reflects the challenges facing banks as they navigate an uncertain interest rate environment.
The mixed performance underscores the importance of stock selection during earnings season. Individual company results can vary significantly, even within the same sector, making thorough analysis crucial for traders.
Inflation concerns mount as tariff impact emerges
June's consumer price inflation (CPI) data has delivered an unwelcome surprise, posting its largest monthly increase in five months. While core inflation remained relatively moderate, Federal Reserve (Fed) officials have begun flagging early signs of tariff-related price pressures filtering through to consumers.
This development could complicate the central bank's policy decisions in the coming months. The inflation uptick serves as a reminder that trade policies can have far-reaching consequences for price stability, particularly in an interconnected global economy.
The data suggests that tariffs are beginning to work their way through supply chains, potentially creating sustained upward pressure on consumer prices. This could limit the Fed's flexibility in adjusting monetary policy.
In the Unitd Kingdom (UK), inflation continues to prove stubborn, with core price growth reaching 3.7% in June, ahead of the 3.5% forecast. Headline inflation also accelerated to 3.6% from 3.4%, keeping pressure on the Bank of England (BoE).
Important to know
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Connect with us
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Professional clients trading spread bets and CFDs can lose more than they deposit.
Options and futures are complex instruments which come with a high risk of losing money rapidly due to leverage. They’re not suitable for most investors. Before you invest, you should consider whether you understand how options and futures work, the risks of trading these instruments and whether you can afford to lose more than your original investment.
Trading stocks and shares ‘on margin’ within a US options and futures account – meaning that you only finance part of the cost of acquiring a position in a security – carries additional risks over buying securities on a fully funded basis and may result in losses exceeding your original investment. Trading on margin will also result in additional costs to you as the investor and any securities purchased using margin may be held as collateral by the lender, restricting both your rights as shareholder, and your ability to use the securities until the margin trade is closed. You should familiarise yourself with these risks before trading on margin.
The value of shares, ETFs and other ETPs bought through a share dealing account, a US options and futures account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results. Some ETPs carry additional risks depending on how they’re structured, investors should ensure they familiarise themselves with the differences before investing.
Share dealing and IG Smart Portfolio accounts provided by IG Trading and Investments Ltd, CFD accounts and US options and futures accounts are provided by IG Markets Ltd, spread betting provided by IG Index Ltd.
IG is a trading name of IG Trading and Investments Ltd (a company registered in England and Wales under number 11628764), IG Markets Ltd (a company registered in England and Wales under number 04008957) and IG Index Ltd (a company registered in England and Wales under number 01190902). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. IG Markets Ltd (Register number 195355), IG Trading and Investments Ltd (Register Number 944492) and IG Index Ltd (Register number 114059) are authorised and regulated by the Financial Conduct Authority.
The information on this site isn’t directed at residents of the United States, Belgium or any particular country outside the UK and isn’t intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.