US STOCKS-S&P 500, Nasdaq touch record highs as Nvidia jumps; data, bank results in focus

By Pranav Kashyap and Nikhil Sharma

July 15 (Reuters) - The Nasdaq and the S&P 500 crept up to new record highs on Tuesday on the back of gains in Nvidia, while investors assessed a largely in-line inflation report and bank results that kicked off the second-quarter earnings season.

A Labor Department report showed U.S. consumer prices rose as expected on a monthly basis in June. Annually, the prices rose 2.7%, compared with an estimated 2.6% rise.

The core figure, which excludes volatile food and energy components, rose 0.2% on a monthly basis and 2.9% from a year earlier, but the gains were below estimates.

"There's little evidence that some of the tariff inflation is beginning to creep in," said Peter Cardillo, chief market economist at Spartan Capital Securities.

"So, (the) bottom line (is), the tariff inflationary aspect still needs to be monitored."

The odds of a July rate cut have almost become nil, while markets pricing for a reduction in September lowered slightly to around 56%, according to CME FedWatch.

At 09:51 a.m. ET, the S&P 500 .SPX gained 15.68 points, or 0.25%, to 6,284.24, and the Nasdaq Composite .IXIC rose 142.25 points, or 0.69%, to 20,782.58.

The Dow Jones Industrial Average .DJI fell 101.39 points, or 0.24%, to 44,353.40.

The Nasdaq and the S&P 500 were boosted by AI-chip leader Nvidia NVDA.O, which surged 5% after unveiling plans to resume sales of its H20 AI chip to China.

Other chipmakers also advanced, with Advanced Micro Devices AMD.O surging 8% and Super Micro Computer SMCI.O rising 5%. The Philadelphia Semiconductor Index .SOX was up 2.1%.

Wall Street kicked off second-quarter earnings with big banks in the spotlight. JPMorgan Chase JPM.N slipped 1% despite boosting its 2025 net interest income outlook, while Wells Fargo WFC.N shares tumbled 5%, even as its quarterly profit climbed on lower loan-loss reserves.

Meanwhile, BlackRock BLK.N set a new record with $12.53 trillion in assets under management amid hopes for trade deals and interest-rate cuts, but its shares dropped 6.2%.

The KBW Bank index .BKX hit a two-week low and was last down 1.1%.

Citigroup C.N rose 1% after the lender's profit jumped in the second quarter as its traders brought in a windfall from turbulent markets.

Despite President Donald Trump's renewed tariff threats - this time aimed at Russia - markets largely brushed off the rhetoric, focusing instead on a breakthrough from negotiations with U.S. trade partners.

Hopes were buoyed after Trump signaled a willingness to talk following his weekend warning of 30% tariffs on the European Union and Mexico from August 1.

At least four Fed officials including Board Governor Michael Barr are scheduled to speak later in the day, potentially offering fresh clues on the central bank's next steps.

Among other movers, Trade Desk TTD.O surged 11.4% after the software firm was set to join the benchmark S&P 500 index .SPX.

Declining issues outnumbered advancers by a 1.09-to-1 ratio on the NYSE and by a 1.08-to-1 ratio on the Nasdaq.

The S&P 500 posted 19 new 52-week highs and two new lows, while the Nasdaq Composite recorded 53 new highs and 27 new lows.