Dow drops 400 points on earnings, inflation woes; Nvidia lifts Nasdaq to record close: Live updates

The S&P 500 dropped 0.4% on Tuesday to close at 6,243.76. The Dow Jones Industrial Average lost 436.36 points, or 0.98%, ending at 44,023.29.

The tech-heavy Nasdaq Composite was the only bright spot in Tuesday’s market. The Nasdaq rose 0.18% to settle the session at 20,677.80.

— Pia Singh

Several crypto-related legislative measures failed to beat a key procedural hurdle in the House of Representatives on Tuesday.

The vote came in at 196 to 223, with 13 Republican lawmakers siding with Democrats to block the procedural motion.

The vote comes after President Donald Trump encouraged Republican lawmakers to vote in favor of the measure. “The House will soon VOTE on a tremendous Bill to Make America the UNDISPUTED, NUMBER ONE LEADER in Digital Assets – Nobody does it better!” he wrote on Truth Social earlier Tuesday.

Crypto-linked stocks traded lower, with Circle Internet Group dropping 4% and Coinbase Global losing 1%. Bitcoin also slipped below the $117,000 threshold, dropping more than 2% on the day.

–Erin Doherty, Darla Mercado

Shares of Southwest Airlines could be set to take a breather, according to Evercore ISI.

The firm downgraded Southwest Airlines stock to in line from outperform on Tuesday, alongside a $40 per share price target. Evercore’s forecast implies roughly 6% upside from Monday’s $37.70 close. The stock has gained about 11% so far in 2025.

Southwest Airlines stock in 2025.

“Southwest is in the process of implementing numerous logical changes which should help its lagging margins begin to recover by 4Q25. Trading at 36x ’25E, 11x ’26E EPS, we believe shares are now much closer to fair value and are beginning to more fully price in clean execution of these initiatives into next year,” analyst Duane Pfennigwerth wrote.

— Brian Evans

McDonald’s Snack Wrap.

Courtesy: McDonald’s

A social media analysis shows consumers are lovin’ McDonald’s new menu item, according to Wolfe Research.

“We think excitement for Snack Wraps … positively contributed to brand buzz/momentum to start 3Q,” Greg Badishkanian, head of the firm’s consumer team, wrote to clients in a Tuesday note. “But are waiting to see what happens after initial trial.”

The fast food giant brought its chicken wrap back to menus last week after originally being discontinued in 2016. Badishkanian said social media checks and industry conversations imply the item is doing well so far.

Badishkanian also said the product should perform better than McCrispy strips, another new release, given what he called pent-up excitement and because of the fact that it was a prior fan favorite.

McDonald’s shares ticked lower in Tuesday session, putting a four-day win streak at risk. Shares have risen more than 3.5% in 2025.

— Alex Harring

BlackRock CEO Larry Fink told CNBC on Tuesday that he would buy his own stock, which was down more than 5% on the heels of the asset manager’s weaker-than-expected revenue for the second quarter.

“They think our expenses may be too high, and our expenses are all front loaded,” Fink said on “Money Movers.” “But I’m thrilled where we are. I’m thrilled about our position with our clients.”

“Long term, I’m a huge buyer of BlackRock at these prices,” he continued.

Fink also called the artificial intelligence infrastructure opportunity for BlackRock “enormous” and said that he believes infrastructure investing is “at the beginning of a golden age.”

— Sean Conlon

A Doordash bag on a bicycle in New York, US, on Thursday, Aug. 8, 2024. 

Yuki Iwamura | Bloomberg | Getty Images

Jefferies is stepping to the sidelines on DoorDash following its recent outperformance.

Shares fell nearly 2% on Tuesday after analyst John Colantuoni downgraded shares of the food delivery company to hold from buy. His updated price target implies slight upside of about 3% from Monday’s close.

This comes as the stock has jumped almost 42% in 2025, outpacing the S&P 500’s year-to-date gain of more than 6%.

“Our profit decomposition supports upside to cons and peer-leading EBITDA growth, but likely not enough to justify continued outperformance without assigning optimistic multiples to DASH’s non-core businesses,” the analyst wrote. “We also think a recent ramp in affordability initiatives could limit upside to take rate.”

“With the stock up 45% YTD and valuation at a 120% premium to Internet, we downgrade to Hold given DASH’s strong execution and growth algorithm appear fully reflected,” he continued.

— Sean Conlon

• First Solar – Shares of the major domestic solar panel producer popped 6%. Bloomberg News reported that the U.S. Commerce Department has launched Section 232 investigations into imports of drones and polysilicon, which is used on solar panels. The move could be a precursor to tariffs, which may be imposed on goods under Section 232 if they are deemed a threat to national security.
• Newmont — The mining stock dropped 8% after Newmont disclosed CFO Karyn Ovelmen had left the company.
• JPMorgan Chase — Shares fell less than 1% even after the bank posted second-quarter earnings that beat analyst expectations. Investment banking and trading revenue drove the stronger-than-expected numbers.

Read the full list here.

— Fred Imbert

A view shows Tesla superchargers at the supercharging station in Escondido, California, U.S., July 3, 2025.

Mike Blake | Reuters

While Evercore ISI analyst Chris McNally remains optimistic that the Trump administration will come to a negotiated tariff deal that will be a positive for automakers, he is cautious on Tesla. “We believe the stock, today, is increasingly both NOISE & SIGNAL,” he wrote, citing several factors for his concern.

McNally said “long-term negative EPS revision trend has continued, unabated,” with fiscal 2026 earnings per share on pace to be about 85% lower than 2022 predictions. He’s also worried about a disappointing autonomous vehicle rollout, “divisive political posting,” and technical moves in the stock that are on the edge of turning negative. Tesla stock has fallen more than 21% year to date, but was slightly positive in Tuesday’s session.

In the near term, McNally said he is expecting second-quarter profits in the range of 38 cents to 40 cents per share, which is below Wall Street’s consensus estimate of 44 cents.

—Christina Cheddar Berk

The S&P 500 has posted 55 days above its 20-day moving average, the longest such streak going back to January 2021 when it was 56 days, according to BTIG. The 20-day moving average, which indicates short-term trends, is at around 6,144.

The long streak is a bullish long-term signal for the stock market, suggesting the S&P 500 can continue to climb higher now that it’s back to trading around all-time highs. But, over the near term, it suggests the broad market is due for a pullback.

“We are clearly stretching the limits of time without a 20 DMA break, and former such streaks often led to periods of volatility or consolidation,” BTIG’s Jonathan Krinsky wrote Monday.

“We think at a minimum we see a test of ~6144 as we head into the back-half of July as volatility enters a a seasonally strong period, and likely something closer to the 6k level heading into August,” he added.

— Sarah Min

Shares of rare earth miner MP Materials jumped more than 25% Tuesday on a $500 million deal to supply Apple with magnets that are manufactured at a plant in Texas.

MP will provide Apple with rare earth magnets made from recycled materials at its Independence plant in Forth Worth. The input materials come from end-of-life magnets, the miner said.

The deal comes after MP announced last week that the Pentagon was purchasing a direct equity stake, sending the miner’s shares skyrocketing about 50%.

— Spencer Kimball

U.S. President Donald Trump reacts during the White House Faith Office Luncheon at the White House in Washington, D.C., U.S., July 14, 2025.

Nathan Howard | Reuters

President Donald Trump on Tuesday repeated his demand for the Federal Reserve to lower interest rates, following an inflation report that showed prices rising but mostly in line with market expectations.

“Consumer Prices LOW. Bring down the Fed Rate, NOW!!!” Trump posted on his Truth Social site.

In a separate post, Trump called for a 3 percentage point reduction.

“Fed should cut Rates by 3 Points. Very Low Inflation. One Trillion Dollars a year would be saved!!!” he said.

The statements followed a report showing the consumer price index in June rose 0.3%, putting the annual inflation rate at 2.7%, the highest since February. Core inflation also moved higher, rising 0.2%, with a 2.9% annual rate.

—Jeff Cox

Citibank sign beneath a glass awning amidst tall office buildings, San Francisco, California, February 21, 2025.

Smith Collection | Gado | Archive Photos | Getty Images

Shares of Citigroup rose modestly in premarket trading after second-quarter results topped Wall Street expectations.

Markets revenue rose 16% year over year, with both fixed income and equities results trending up. Banking revenue was up 18% year over year.

Here’s how Citigroup’s results compare to Wall Street expectations:

• Earnings: $1.96 per share vs $1.60 per estimate from LSEG
• Revenue: $21.67 billion vs $20.98 billion estimate

— Jesse Pound

These are the stocks moving the most in premarket trading:

• Nvidia — Shares jumped 4% after the graphics processing unit manufacturer announced it will “soon” resume sales of its H20 AI chip to China upon receiving licenses from the U.S. government.
• Trade Desk — Shares surged 14% after S&P Global announced that the digital advertising company is set to join the S&P 500 as of Friday.
• BlackRock — Stock in the world’s largest asset manager slipped about 3% after second-quarter revenue missed Wall Street’s expectations.

Read the full list of stocks moving here.

— Lisa Kailai Han

A person shops at a Dollar General store on May 28, 2025 in Chicago, Illinois.

Scott Olson | Getty Images

Factory activity in the New York area surged in July, posting its first positive reading since February as shipments, inventory and employment grew and optimism for the future also improved, according to the regional Federal Reserve

The New York Fed’s Empire State Manufacturing index jumped to 5.5, a nearly 22-point improvement over the prior month and much better than the -9.5 forecast from Dow Jones. The gauge measures the percentage difference between companies reporting expansion against contraction.

Within the index, new orders surged 16.2 points to positive level, while shipments soared 18.7 points to 11.5 and inventories climbed 14.7 points to 15.6. The prices paid index accelerated but the prices received index nudged lower while the employment index also improved, rising to 9.2, up 4.5 points from June.

Looking to the future, the general business conditions outlook for six months down the road improved to 24.1, or a 2.9-point gain.

—Jeff Cox

Announcements from a handful of major tech companies on Tuesday spurred enthusiasm around AI stocks, lifting the broader market higher in premarket trading. Here’s a quick rundown:

• Alphabet’s Google said it will invest $25 billion in data center and AI infrastructure over the next two years in the PJM electric grid region over the next two years. That’s the biggest electric grid in the U.S. Google will also spend $3 billion to modernize two hydropower plants in Pennsylvania to help meet the region’s increasing power demand.
• Nvidia said it is filing applications with the U.S. government to resume sales of its H20 GPU chips 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 press release.
• Amazon-backed Anthropic announced Claude tools for financial services. As part of the company’s so-called Financial Analysis Solution, Claude will get real-time access to financial information through data providers like PitchBook, Databricks and S&P Global. The tools will help financial professionals make investment decisions, analyze markets and conduct research, Anthropic said.

— Pia Singh

Wells Fargo shares were down 0.8% in the premarket after the company lowered its 2025 net income guidance to roughly in line with 2024 levels. The bank previously expected an increase of 1% to 3%.

The forecast reduction overshadowed better-than-expected second-quarter results.

WFC falls

JPM 5-day chart

Jensen Huang, co-founder and CEO of Nvidia Corp., speaks during a news conference in Taipei on May 21, 2025.

I-hwa Cheng | Afp | Getty Images

Shares of Nvidia jumped 4.5% in premarket trade on Tuesday, after the company said it was hopeful it could soon resume sales of its H20 chips 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 on Tuesday.

Read more here.

— Chloe Taylor

Asia-Pacific ended the day higher Tuesday.

Hong Kong’s Hang Seng Index added 1.6% to close at 24,590.12, while mainland China’s CSI 300 index was flat at 4,019.06.

Japan’s Nikkei 225 benchmark added 0.55% to close at 39,678.02, while the broader Topix index was flat at 2,825.31.

Meanwhile, South Korea’s Kospi index increased by 0.41% to close at 3,215.28, while the small-cap Kosdaq advanced 1.69% to 812.88.

Australia’s S&P/ASX 200 benchmark ended the day 0.7% higher at 8,630.30.

Over in India, the 50-stock benchmark Nifty 50 was up 0.43%, while the Sensex index moved up 0.31% as of 1.55 p.m. Indian Standard time (4.25 a.m. ET).

— Amala Balakrishner

We’re just over half an hour into Tuesday’s trading session, and European shares are broadly moving higher.

The pan-European Stoxx 600 was last seen trading around 0.2% higher, with most sectors trading in positive territory.

Regional shares are coming off of a mostly losing session on Monday, as investors reacted to U.S. President Donald Trump’s threat to to slap 30% tariffs on goods from the European Union next month.

— Chloe Taylor

Merchandise is offered for sale at a Crate & Barrel store on May 30, 2025 in Chicago, Illinois.

Scott Olson | Getty Images

June’s consumer price index could be the first to show the tariff impact. Here are what economists polled by Dow Jones are expecting:

• Headline: 0.3% monthly increase, 2.7% increase on an annual basis
• Core: 0.3% monthly increase, 3% gain on an annual basis

The inflation reading is due out Tuesday at 8:30 a.m. ET.

— Sarah Min

Companies have a low bar to clear this earnings season.

The S&P 500 is projected to post a blended earnings growth rate of 4.3% in the second quarter, on a year-over-year basis, according to FactSet data. That would be the lowest for the index going back to the fourth quarter of 2023, when it was just 4.0%.

— Sarah Min

Advertising tech company The Trade Desk will become part of the S&P 500, effective before trading opens on Friday, July 18, according to S&P Dow Jones Indices.

Joining the broad market index tends to lift a company’s share price: The Trade Desk jumped 14% in extended trading following the announcement.

The Trade Desk over the past day

Just last week, Wall Street firm Stephens predicted that The Trade Desk could be a potential contender to join the S&P 500’s communications services sector, which is an underweight grouping in the index.

The Trade Desk will replace software company Ansys, which is on track to be acquired by Synopsys on or about Thursday.

—Darla Mercado, Jordan Novet