Dow Drops 400+ on Earnings, Inflation Concerns
The Dow Jones Industrial Average fell Tuesday as worries over U.S. inflation and a mixed bag of big bank earnings dragged the blue-chip index lower. The Nasdaq Composite, meanwhile, got a boost from gains in Nvidia.
The 30-stock index plummeted 436.36 points, or 1%, to wrap up Tuesday at 44,023.29.
The S&P 500 index swooned 24.8 points to 6,243,76.
The NASDAQ Composite moved into the green 37.47 points to 20,677.80, lifted by a 4% rise in Nvidia shares after the chip company said it hopes to “soon” resume deliveries of its H20 GPU sales to China.
Wells Fargo beat earnings, but a reduction in net interest income guidance sent shares lower by more than 5%.
Shares of JPMorgan Chase edged lower even though the bank posted better-than-expected second-quarter results driven by strong trading and investment banking revenue.
Asset manager BlackRock slipped about 5% on a quarterly revenue miss.
Citigroup bucked the negative trend in financials, rising more than 4% after the bank topped second-quarter estimates.
The consumer price index in June increased 0.3% on the month, putting the annual inflation rate at 2.7%, matching a consensus poll from Dow Jones.
So-called core CPI, which excludes food and energy prices, grew 0.2% month over month, slightly less than expected. Year over year, it expanded by 2.9%, matching estimates.
Prices for the 10-year treasury stumbled, boosting yields to 4.49% from Monday’s 4.43%. Treasury prices and yields move in opposite directions.
Oil prices lost 29 cents to $66.69 U.S. a barrel.
Gold prices lost $21.90 to $3,337.20 U.S. an ounce.
