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Indexes: Dow down 0.24%, S&P 500 up 0.25%, Nasdaq up 0.69%

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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 market-open prices)

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 ( NVDA ), 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 gained 15.68 points, or

0.25%, to 6,284.24, and the Nasdaq Composite rose 142.25

points, or 0.69%, to 20,782.58.

The Dow Jones Industrial Average 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 ), 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 )

surging 8% and Super Micro Computer ( SMCI ) rising 5%.

The Philadelphia Semiconductor Index was up 2.1%.

Wall Street kicked off second-quarter earnings with

big banks

in the spotlight. JPMorgan Chase ( JPM ) slipped 1% despite

boosting

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

shares tumbled 5%, even as its

quarterly profit

climbed on lower loan-loss reserves.

Meanwhile, BlackRock ( BLK ) 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 hit a two-week low and was

last down 1.1%.

Citigroup ( C/PN ) 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 ) surged 11.4% after

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

.

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.