The New York stock market closed mixed on the 15th (local time). The consumer price index (CPI) for June matched market expectations, but the increase from the previous month raised investors' caution. In contrast, the U.S. government's renewed approval for NVIDIA’s exports to China boosted tech stocks.
On the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 44,023.29, down 436.36 points (0.98%) from the previous session. The Standard and Poor's (S&P) 500 index recorded a decline of 24.80 points (0.40%) to 6,243.76. However, the tech-heavy Nasdaq Composite Index finished up 37.47 points (0.18%) at 26,677.80.
According to the U.S. Department of Labor, the CPI for June rose by 0.3% compared to the previous month, a larger increase than May's 0.1%. Year-over-year, it increased by 2.7%, up from 2.4% in May. Although both figures met market expectations, the start of the tariff effects being reflected in prices prompted a sensitive market reaction.
In particular, the core CPI, excluding food and energy, fell slightly short of expectations, but the increase from the previous month was larger. Price increases were notable across consumer goods categories, including appliances (1.9%), furniture and household items (1.0%), toys (1.8%), video and audio equipment (1.1%), and clothing (0.4%). This suggests that the tariff policies of the Trump administration have begun to impact consumer prices.
On this day, most large-cap stocks, excluding tech stocks, fell among the constituents of the Dow index. Skylar Weinand, CIO at Riven Capital, noted, "Despite the CPI figures aligning with expectations, the inflation risks due to tariffs are becoming more pronounced."
In contrast, tech stocks led by NVIDIA showed strength. The U.S. government's approval of NVIDIA's exports to China led to a 4% rise in its stock price, expanding its market capitalization to $4.165 trillion. As expectations for artificial intelligence (AI) semiconductors grew, the Philadelphia Semiconductor Index rose by 1.27%. AMD surged by 6.41%, and companies like Broadcom, TSMC, and ASML also showed strength.
Among the big tech stocks with market capitalizations exceeding $1 trillion, Microsoft, Apple, Amazon, and Alphabet rose, while Meta and Tesla recorded declines of about 1%.
Non-tech stocks performed relatively poorly. Eli Lilly fell by 3.45%, and Home Depot also dropped by 3.10%. Major retailers Walmart and Costco showed weakness.
Financial stocks fared better, with Citigroup rising over 3% following strong Q2 results, while Wells Fargo fell more than 5% due to a downward revision of net interest income forecasts, and BlackRock also dropped by more than 5% due to poor performance. JPMorgan closed lower.
Expectations regarding interest rates appeared volatile. According to the Chicago Mercantile Exchange (CME) FedWatch, the probability of a rate cut in September decreased to 54.4%, while the probability of a freeze rose to 44.1%. The potential resurgence of inflation has weakened expectations for rate cuts.
The Chicago Board Options Exchange (CBOE) Volatility Index (VIX), which indicates market volatility, recorded a rise of 1.05% to 17.38.