Nvidia was among the winners on the New York Stock Exchange on Tuesday. The company expects to resume sales of its advanced H2O chips in China soon.
Nvidia developed this artificial intelligence (AI) chip specifically for the Chinese market. However, the export of these chips to China was initially restricted by the US government. Nevertheless, the US government has now assured Nvidia that the permits will still be granted.
Nvidia, which last week became the first company ever to reach a market capitalisation of more than $4 trillion, rose more than 4 percent. Industry peers Advanced Micro Devices (AMD) and Marvell Technology also rose, gaining up to 7 percent.
The overall mood on Wall Street remained cautious. Shortly after market open, the Dow Jones Industrial Average was down 0.2 percent at 44,374. The broader S&P 500 index rose 0.4 percent to 6,292, and the tech-heavy Nasdaq gained 0.8 percent to 20,811.
On Monday, Wall Street managed to shake off concerns about President Donald Trump’s new import tariffs on Mexico and the European Union. The results of major banks, including JPMorgan Chase, Wells Fargo, and Citigroup, also dominated trading.
JPMorgan (down 0.7 percent), the largest bank in the US, saw its revenue and profit decline but performed better than expected. Revenue from stock and bond trading rose sharply again due to the uncertainty on the markets surrounding Trump’s tariffs. The bank also did well in supporting IPOs, mergers, and acquisitions.
Wells Fargo (down 4.5 percent) had to set aside less money for loans that might not be repaid in the past quarter and saw profits rise. However, the bank lowered its interest income forecast for this year. Citigroup gained almost 1 percent after publishing its results.
Investors also processed new inflation data. In June, consumer prices in the world’s largest economy rose by 2.7 percent year-on-year. Investors hope the Federal Reserve will lower interest rates later this year. The central bank has left borrowing costs unchanged so far, partly due to fears that Trump’s tariffs will fuel inflation.