Nvidia Rallies After Resuming Chip Sales to China

Nvidia shares lifted Nasdaq futures after the company announced it will resume sales of its H20 chips to China, with CEO Jensen Huang set to attend a major supply chain expo in Beijing. Investors are focused on today’s earnings from JPMorgan, Wells Fargo, Citigroup, and BlackRock, as S&P 500 profit growth forecasts have fallen to 5.8% from 10.2% since Trump’s tariff plans. US June inflation data is also due, with markets watching for signs of price pressure and further commentary on the future of Fed Chair Jerome Powell amid political scrutiny.

Equities

The FTSE 100 rose 0.6% on Monday to close at 8,998.06, setting a fresh record high as investors looked ahead to potential interest rate cuts by the Bank of England.

AstraZeneca shares climbed 2% after the company announced that its blood pressure drug baxdrostat had succeeded in a late-stage trial for patients with hard-to-treat hypertension. Associated British Foods added 2% after Panmure Liberum upgraded the stock to “buy”, reflecting confidence in the company’s retail and food divisions.

The FTSE 250 also advanced, gaining 0.5%, supported by expectations that the Bank of England may cut rates for the fifth time since last August. Markets are now pricing in an 89% chance of a 25 basis point cut next month.

Wall Street posted modest gains as markets remained steady ahead of major economic data and the start of the US earnings season. The Nasdaq Composite rose 0.27% to 20,640.33, closing at a record high for the seventh time since late June. The S&P 500 added 0.14% to 6,268.56, while the Dow Jones Industrial Average rose 0.20% to 44,459.65. Trading volumes remained subdued, with 15.43 billion shares traded compared to the 20-day average of 17.62 billion.

Energy stocks fell after US crude prices dropped 2.2%, following President Donald Trump’s threat to impose tariffs on buyers of Russian oil. This pushed the S&P 500 energy index down 1.2%, the steepest sector decline of the day.

Netflix rose ahead of its earnings report due Thursday, while Warner Bros. Discovery gained following a strong box office debut for its latest Superman film, helping lift the communication services sector by 0.7%.

Bitcoin passed the $120,000 mark for the first time, boosting crypto-linked stocks. Coinbase climbed 1.8%, and MicroStrategy rose 3.8%.

Waters Corporation dropped 13.8% after agreeing to a $17.5 billion merger with Becton, Dickinson’s Biosciences and Diagnostic Solutions unit.

Forex & Commodities

The dollar rose on Monday, supported by higher Treasury yields and geopolitical tensions, while the euro and pound slipped ahead of key US inflation data. The dollar index was up 0.19% at 98.07, with the greenback gaining 0.22% against the yen to 147.72, its highest level since late June. The euro dipped 0.16% to $1.167, earlier hitting a three-week low of $1.1649. The pound fell 0.52% to $1.3429, the weakest since 23 June, after Bank of England Governor Andrew Bailey said uncertainty continues to weigh on UK growth expectations.

Market attention is focused on US consumer price inflation data for June, due Tuesday. Headline inflation is forecast to rise to 2.7% from 2.4%, with core inflation expected at 3.0%, up from 2.8%. The Federal Reserve is not expected to move rates this month, but futures pricing implies 50 basis points of cuts by year-end, with the first likely in September. US President Donald Trump renewed criticism of Fed Chair Jerome Powell, calling for rates to fall to 1% or below. Betting markets are assigning nearly a 20% chance that Trump removes Powell before the end of the year.

Gold rose 0.5% to $3,360.35 per ounce. Silver held near a 14-year high at $38.15. Platinum and palladium also edged higher, up 0.8% and 0.2% respectively.

Oil prices slipped after Trump gave Russia a 50-day deadline to agree to a peace deal or face sanctions. Brent crude fell 0.2% to $69.09 a barrel and WTI dropped 0.2% to $66.82, giving up earlier gains.