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Indexes: Dow down 0.57%, S&P 500 up 0.01%, Nasdaq up 0.66%

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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

(Updates with early afternoon prices, analyst comment)

By Pranav Kashyap and Nikhil Sharma

July 15 (Reuters) -

The Nasdaq cruised to a fresh record high on Tuesday,

powered by a jump in Nvidia ( NVDA ), while the S&P 500 hovered below its

peak, as investors digested an inflation report and a flurry of

major bank earnings.

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.

Hopes for a July rate cut have

all but vanished

, and bets on a September move dipped to 55% from 60% after

the latest data, according to CME FedWatch.

"It's (CPI data) perfectly in line with expecting the Fed to

kind of re-engage on rate cuts at its September meeting," said

Ross Mayfield, investment strategist at Baird.

At 11:33 a.m. ET, the S&P 500 gained 0.71 points, or

0.01%, to 6,269.27, and the Nasdaq Composite rose 136.40

points, or 0.66%, to 20,776.73.

The Dow Jones Industrial Average fell 251.28 points,

or 0.57%, to 44,208.37.

The Nasdaq was boosted by AI-chip leader Nvidia ( NVDA ),

which rose 4.4% after unveiling plans to resume sales of its H20

AI chip to China.

Other chipmakers also advanced, with Advanced Micro Devices ( AMD )

and Super Micro Computer ( SMCI ) rising more than 6%

each.

The technology sector rose 1.7% 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 0.4% despite

raising

its 2025 net interest income outlook, while Wells Fargo ( WFC )

fell 5% 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 5.4%.

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

1.1%.

Bucking the trend, Citigroup ( C/PN ) climbed 3% after its

traders

delivered

a windfall that boosted second-quarter profits.

Mayfield, referring to the banks' results, said "there

must have been a higher bar to clear, but most of the reporters

so far have beaten estimates, which is what you want to see."

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.

Nine of the 11 S&P 500 sectors were trading in the red.

Among other movers, Trade Desk ( TTD ) surged 9.7% after the

software firm was set to join the benchmark S&P 500 index

.

Declining issues outnumbered advancers by a 2.65-to-1

ratio on the NYSE and by a 2.06-to-1 ratio on the Nasdaq.

The S&P 500 posted 21 new 52-week highs and eight new

lows, while the Nasdaq Composite recorded 64 new highs and 46

new lows.