(Updates to midsession, adds analyst comment, market details )

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Indexes: Dow down 0.76%, S&P 500 down 0.09%, Nasdaq up

0.59%

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Nvidia ( NVDA ) surges as H20 chip sales to China set to resume

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Citigroup ( C/PN ) up after Q2 profit beats estimates

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JP Morgan, Wells Fargo ( WFC ) both down after earnings

By David French

July 15 (Reuters) - The Nasdaq Composite

advanced to its latest record high on Tuesday, powered by a jump

in heavyweight Nvidia's ( NVDA ) shares, while the other Wall Street

benchmarks were sluggish as traders digested a key inflation

report and a flurry of bank earnings.

Should gains on the Nasdaq hold, it would be the fourth

session in five that the technology-heavy index has posted a

record close, and the eighth time since June 27.

Markets have been buoyant in recent weeks. Investor concerns

that the U.S. economy would be tarnished by President Donald

Trump's policies, including major tariff announcements, have

started to abate, allowing Wall Street to move higher.

This week was expected to be a significant test of that

improving sentiment, with the start of second-quarter earnings

season and inflation reports that were forecast to reflect

sellers starting to pass on higher tariff-related costs.

The first of these reports showed U.S. consumer prices posted

their biggest jump in five months in June, hinting that tariffs

may be starting to heat up inflation. Still, underlying

inflation stayed moderate, offering some reassurance despite the

headline spike.

"The CPI report came in a little better than expected, but

it's backwards-looking, so the market is still concerned that

there will be inflationary pressures building because of

tariffs," said Chris Zaccarelli, chief investment officer at

Northlight Asset Management.

He added the news could be used by some investors to take

profits after the recent good run, which would explain declines

on both the S&P 500 and the Dow Jones Industrial Average

.

At 1:52 p.m. EDT, the Nasdaq Composite had gained

122.51 points, or 0.59%, to 20,762.84. However, the Dow Jones

Industrial Average fell 336.57 points or 0.76% to

44,123.08, and the S&P 500 lost 5.93 points or 0.09% to

6,262.63.

The Nasdaq's increase came primarily from artificial

intelligence-chip leader Nvidia ( NVDA ), which rose 4% after

unveiling plans to resume sales of its H20 AI chip to China.

The news buoyed other chipmakers, with Advanced Micro

Devices ( AMD ) and Super Micro Computer ( SMCI ) rising more

than 6.7% each.

The semiconductor index also advanced 1.5%, to its

highest point in a year, while the S&P technology index

climbed by the same percentage to hit a record high.

Meanwhile, Wall Street opened the second-quarter earnings season

on a somber note, with banking stocks whipsawing in volatile

trade.

JPMorgan Chase ( JPM ) slipped 0.7% despite raising its 2025 net

interest income outlook, while Wells Fargo ( WFC ) fell 6.3%

even as its profit rose on reduced loan-loss reserves. BlackRock ( BLK )

notched a new milestone, managing a record $12.53

trillion in assets amid optimism over trade deals and rate cuts,

yet its shares slid 5.5%.

The KBW Bank Index sank to a two-week low, down

1.1%.

Bucking the trend, Citigroup ( C/PN ) climbed 3.4% after its

traders delivered a windfall that boosted second-quarter

profit.

Northlight's Zaccarelli said the differing share performance

was less about Tuesday's broadly positive numbers and more a

reflection of how they matched up with investors' existing

expectations for each bank.

In other news, at least four Fed officials including Board

Governor Michael Barr were scheduled to speak on Tuesday,

potentially offering fresh clues on the central bank's next

steps.

Hopes for a July rate cut have all but vanished, and bets on a

September move dipped to 55% from 60% after the latest inflation

data, according to CME FedWatch.