Zürcher Nachrichten - Nasdaq gains while Dow, S&P 500 fall as US inflation ticks higher

In New York, the Nasdaq edged higher to close at another record, propelled by buoyant news from tech darling Nvidia. But the blue-chip Dow and broader S&P 500 both retreated.

The US consumer price index for June showed inflation rose 2.7 percent compared with a year earlier.

Though in line with economists' forecasts, the rate was above the Federal Reserve's two-percent target and marked an acceleration from the prior month.

Jochen Stanzl, an analyst at CMC Markets, said detail in the CPI report "points to a trend toward stagflation -- an unwelcome topic for investors in an increasingly overvalued market."

Stephen Innes, managing partner at SPI Asset Management, said that "the CPI release showed some early signs of tariff pass-through but underlying inflation remains muted."

Since April, the United States has imposed a baseline 10-percent tariff on goods imported from most of its main trading partners, with steeper levies on steel, aluminum and cars.

Trump has threatened big tariff hikes on August 1 on numerous countries if they do not reach deals.

On Tuesday, Trump announced a trade agreement with Indonesia. Indonesian goods entering the United States would encounter a 19 percent tariff, below the 32 percent previously threatened.

The Indonesia accord, however, comes as US negotiations remain unresolved with around two dozen other trading partners.

High stock market prices "may be emboldening the administration to keep up the bluster on tariffs," said Art Hogan of B. Riley Wealth Management.

- Tariff threat to Russia -

Most Asian indices closed higher before the US inflation report came out, except for those in Shanghai and Mumbai.

China and India are both major trading partners of Russia -- which Trump said would be hit with tariffs of up to 100 percent within 50 days if President Vladimir Putin did not end his war on Ukraine.

China, which has negotiated a US tariff truce, had on Tuesday issued economic growth data that met expectations, largely thanks to an April-June export surge to get ahead of Trump's levies.

Even though Russia is a major crude producer, oil traders bid prices lower, not higher, following Trump's announcement.

"The fact that oil prices fell suggests investors are relieved that Trump has allowed sufficiently enough time for Putin to agree to a ceasefire," said Fawad Razaqzada, analyst at Forex.com.

"They are also getting used to Trump threatening tariffs, only to change his mind in the last minute and extend deadlines," he said.

In corporate news, US banks JPMorgan Chase, Wells Fargo and Citi posted strong second-quarter results.

And Nvidia's share price jumped after it said US export restrictions will be eased to allow it to sell its H20 artificial intelligence chips to China.

- Key figures at around 2030 GMT -

New York - Dow: DOWN 1.0 percent at 44,023.29 (close)

New York - S&P 500: DOWN 0.4 percent at 6,243.76 (close)

New York - Nasdaq Composite: UP 0.2 percent at 20,677.80 (close)

London - FTSE 100: DOWN 0.7 percent at 8,938.32 (close)

Paris - CAC 40: DOWN 0.5 percent at 7,766.21 (close)

Frankfurt - DAX: DOWN 0.4 percent at 24,060.29 (close)

Tokyo - Nikkei 225: UP 0.6 percent at 39,678.02 (close)

Hong Kong - Hang Seng Index: UP 1.6 percent at 24,590.12 (close)

Shanghai - Composite: DOWN 0.4 percent at 3,505.00 (close)

Euro/dollar: DOWN at $1.1606 from $1.1664

Pound/dollar: DOWN at $1.3383 from $1.3427

Dollar/yen: UP at 148.85 yen from 147.72 yen

Euro/pound: DOWN at 86.69 pence from 86.87 pence

Brent North Sea Crude: DOWN 0.7 percent at $68.71 per barrel

West Texas Intermediate: DOWN 0.7 percent at $66.52 per barrel

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F.Schneider--NZN