Nvidia Surge Powers Nasdaq to New Highs Amid Inflation Jitters

The Nasdaq Composite reached a new record high on Tuesday, primarily driven by a significant surge in Nvidia's stock. This achievement marked the fourth time in five sessions that the technology-focused index hit a new peak, amid an atmosphere of mixed market reactions to inflation data and bank earnings.

Nvidia's 4% stock increase, following its announcement to resume H20 AI chip sales to China, uplifted other chipmakers, including Advanced Micro Devices and Super Micro Computer. The semiconductor index and S&P technology index both saw gains, reinforcing the tech sector's robust performance amidst concerns over inflationary pressures.

While the Nasdaq thrived, the Dow Jones Industrial Average and S&P 500 experienced losses. The divergence in market movements reflects investor caution over tariff-induced inflation, offset by promising second-quarter earnings from key banks like JPMorgan Chase. Market participants remain watchful of upcoming Federal Reserve actions.

(With inputs from agencies.)