Nvidia May Lead Early Advance On Wall Street

(RTTNews) - The major U.S. index futures are currently pointing to a higher open on Tuesday, with stocks likely to add to the modest gains posted in the previous session.

Nvidia (NVDA) may help lead the markets higher, as the AI darling is surging by 4.7 percent in pre-market trading.

The spike by Nvidia comes after the company indicated it will "soon" resume H20 AI chip sales to China.

"The U.S. government has assured NVIDIA that licenses will be granted, and NVIDIA hopes to start deliveries soon," the company said in a statement.

The futures remained positive after the Labor Department released a report showing consumer prices in the U.S. increased in line with economist estimates in the month of June.

The Labor Department said its consumer price index rose by 0.3 percent in June after inching up by 0.1 percent in May.

The annual rate of consumer price growth accelerated to 2.7 percent in June from 2.4 percent in July. Economists had expected the price of growth to rise to 2.6 percent.

The Labor Department also said the core consumer price index, which excludes food and energy prices, edged up by 0.2 percent in June after creeping up by 0.1 percent in May. Core prices were expected to increase by 0.3 percent.

The report said the annual rate of core consumer price growth ticked up to 2.9 percent in June from 2.8 percent in May, in line with economist estimates.

After showing a lack of direction early in the session, stocks moved modestly higher over the course of the trading day on Monday. The major averages all moved to the upside following the pullback seen during last Friday's session.

The tech-heavy Nasdaq climbed 54.80 points or 0.3 percent to 20,640.33, the Dow rose 88.14 points or 0.2 percent to 44,459.65 and the S&P 500 inched up 8.81 points or 0.1 percent to 6,268.56.

The modest strength that emerged on Wall Street came despite President Donald Trump's threats to impose 30 percent tariffs on imports from the European Union and Mexico beginning August 1st.

Trump claimed in a post on Truth Social that the U.S. has been "ripped off" on trade for decades, costing the country trillions of dollars.

"Countries should sit back and say, 'Thank you for the many year's long free ride, but we know you now have to do what's right for America,'" Trump said. "We should respond by saying, 'Thank you for understanding the situation we are in. Greatly appreciated!'"

Meanwhile, the EU announced it would suspend the implementation of its trade countermeasures against the U.S. until early August to allow more time for a negotiated settlement to the issue.

Responding to Trump's letter at a news conference on Sunday, European Commission president Ursula von der Leyen said, "We will therefore also extend the suspension of our countermeasures till early August. At the same time, we will continue to prepare further countermeasures so we are fully prepared."

"We have always been very clear that we prefer a negotiated solution. This remains the case, and we will use the time that we have now till the 1st of August (to negotiate)," she told reporters in Brussels.

The EU's retaliatory tariff on $25 billion worth of American goods for the 25 percent import duty that the U.S. imposed on steel and aluminum imports from Europe was set to come into force Monday.

Commodity, Currency Markets

Crude oil futures are slipping $0.11 to $66.87 a barrel after tumbling $1.47 to $66.98 a barrel on Monday. Meanwhile, after dipping $4.90 to $3,359.10 an ounce in the previous session, gold futures are edging down $1.10 to $3,358 an ounce.

On the currency front, the U.S. dollar is trading at 148.09 yen compared to the 147.72 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is trading at $1.1668 compared to yesterday's $1.1664.

Asia

Asian stocks rose broadly on Tuesday as traders brushed off U.S. President Donald Trump's tariff threats and reacted positively to Chinese GDP data for the first half of 2025.

China's economy posted solid 5.3 percent growth in the first half of 2025, demonstrating strong resilience despite a complex global environment, according to data released by the National Bureau of Statistics.

China's June factory output beat forecasts and marked the quickest pace of growth since March, but retail sales growth slowed down from the previous month, separate reports revealed.

Fixed asset investment expanded 2.8 percent in the first six months this year from the same period last year, compared with the expectations for a 3.6 percent rise.

The dollar held near a three-week high in Asian trading ahead of U.S. June CPI data that could provide clues on the path for monetary policy.

The inflation rate likely accelerated for the second consecutive month to 2.7 percent, the highest level since February, from 2.4 percent in May.

Gold climbed above $3,360 per ounce as a result of increasing trade and geopolitical tensions, while oil prices declined as traders assessed the outlook for Russian supply.

China's Shanghai Composite Index dropped 0.4 percent to 3,505 as the latest GDP data eased the pressure on the need for additional stimulus in the near term.

Investors also fretted about the state of the country's property market after China Vanke Co. said its first-half loss could reach as high as $1.67 billion.

Data revealed China's new home prices fell at the fastest monthly pace in eight months in June, highlighting the struggle to revive demand.

Hong Kong's Hang Seng Index rallied 1.6 percent to 24,590.12, with tech giants like Baidu and Alibaba surging 4-7 percent amid Nvidia-related optimism.

Japanese markets advanced after Nvidia said it has received U.S. approval to resume exports of its H20 AI chip to China.

The Nikkei 225 Index rose 0.6 percent to 39,678.02 despite lingering uncertainty over the upcoming upper house election outcome. The broader Topix Index finished marginally higher at 2,825.31.

Chip-testing equipment maker Advantest gained 1.8 percent, Tokyo Electron rallied 3.5 percent SoftBank Group added 2 percent.

Japanese government bond yields surged, with the 30-year yield hitting a record high amid fiscal health concerns ahead of the nation elections on July 20.

Seoul stocks eked out modest gains to end higher for a second day running, led by gains in the tech sector. The Kospi climbed 0.4 percent to 3,215.28.

Australian markets ended at a record high, led by gains in the banking, healthcare and technology sectors. The benchmark S&P/ASX 200 Index rose 0.7 percent to 8,630.30, while the broader All Ordinaries Index closed up 0.7 percent at 8,875.30.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index ended marginally higher at 12,689.63.

Europe

European stocks have moved modestly higher on Tuesday amid optimism that U.S President Donald Trump's bargaining tactics are unlikely to derail global trade. Investors also cheered data that showed China's economy grew at a steady pace in the spring.

While the German DAX Index is up by 0.3 percent, the French CAC 40 Index is up by 0.2 percent and the U.K.'s FTSE 100 Index is up by 0.1 percent.

Tech stocks have surged after Nvidia said it has received U.S. approval to resume exports of its H20 AI chip to China.

Trustpilot Group shares have also spiked. The world's largest independent customer feedback platform upgraded its full-year profit outlook after delivering strong first-half growth in bookings and revenue.

Hydrogen group Thyssenkrupp Nucera has also shown a strong move to the upside after raising its annual EBIT outlook.

Meanwhile, retailer B&M European Value Retail has plummeted after its first quarter sales missed forecasts.

Telecom equipment maker Ericsson has also tumbled after U.S. tariffs hampered growth in its profit margins.

Barratt Redrow has also moved sharply lower after the homebuilder missed its own sales guidance in the year to the end of June.

U.S. Economic News

The Labor Department released a report on Tuesday showing consumer prices in the U.S. increased in line with economist estimates in the month of June.

The report said the consumer price index rose by 0.3 percent in June after inching up by 0.1 percent in May.

The annual rate of consumer price growth accelerated to 2.7 percent in June from 2.4 percent in July. Economists had expected the price of growth to rise to 2.6 percent.

The Labor Department also said the core consumer price index, which excludes food and energy prices, edged up by 0.2 percent in June after creeping up by 0.1 percent in May. Core prices were expected to increase by 0.3 percent.

The report said the annual rate of core consumer price growth ticked up to 2.9 percent in June from 2.8 percent in May, in line with economist estimates.

New York manufacturing activity has seen a notable turnaround in the month of July, according to a report released by the Federal Reserve Bank of New York on Tuesday.

The New York Fed said its general business conditions index surged to a positive 5.5 in July from a negative 16.0 in June, with a positive reading indicating growth. Economists had expected the index to rise to a negative 10.0.

The report also said the index for future general business conditions rose to 24.1 in July from 21.2 in June, suggesting that, on the whole, businesses expect activity to increase in the months ahead.

At 9:15 am ET, San Francisco Federal Reserve President Michelle Bowman is scheduled to deliver welcome remarks before the "Unleashing a Financially Inclusive Future" conference hosted by the Federal Reserve.

Federal Reserve Board Governor Michael Barr is due to speak before the "Unleashing a Financially Inclusive Future" conference at 12:45 pm ET.

At 1 pm ET, Richmond Federal Reserve President Thomas Barkin is scheduled to speak on "Forecasting Beyond Today's Data" before the Greater Baltimore Committee.

Boston Federal Reserve President Susan Collins is due to speak on "A View from the Federal Reserve" before the National Association for Business Economics 22nd Annual Economic Measurement Seminar at 2:45 pm ET.

At 7:45 pm ET, Dallas Federal Reserve President Lorie Logan is scheduled to deliver opening remarks before a World Affairs Council of San Antonio event.