Stocks Climb as NVIDIA Gains U.S. Chip Waiver, Investors Eye Inflation and Bank Earnings – Europe Market Wrap

Stocks advanced after NVIDIA secured US assurances to resume sales of some artificial intelligence chips to China, lifting sentiment on a busy day that also features inflation data and big bank earnings.

European stocks rose 0.2%, with technology shares among the session’s top performers. Futures for the Nasdaq 100 gained 0.6% while those for the S&P 500 climbed 0.4%. Nvidia strengthened more than 5% in early trading. Bitcoin fell as traders took profit after a record-setting surge.

The yield on 10-year Treasuries declined two basis points to 4.41%, with government bonds rising broadly in positioning-led moves ahead of June’s consumer price index report. The dollar dropped 0.2%.

The approval of export licenses for the H20 chip not only boosts NVIDIA’s earnings prospects but also bodes well for progress in trade talks between the White House and key partners. With stocks trading near record highs, investors will gain a clearer read on corporate health as major banks mark the unofficial start of earnings season.

In a first set of earnings figures, JPMorgan’s investment bankers eked out a surprise gain in the second quarter, signaling what may be the start of a dealmaking rebound.

After months of seeing little inflation, CPI probably experienced slightly faster growth in June as companies started to pass along higher costs of imported merchandise associated with tariffs. The options market is betting the S&P 500 will swing 0.6% in either direction after the release, based on the cost of at-the-money puts and calls, according to Citigroup.