Nasdaq Record; Dow, S&P 500 Fall; Nvidia, Trade Desk, More Movers; CPI Inflation Report

The Russell 2000, which captures stocks of smaller companies, was also lower.

The S&P would have been even lower had it not been for U.S. technology companies, which account for 33% of the index. Every other sector within the S&P 500, from materials to healthcare to financials, lost value today.

On the surface, it’s hard to pinpoint blame. JPMorgan and Citigroup posted strong results as second-quarter earnings season kicked off. Core inflation data–the most watched component that strips out volatile food and energy prices–also came in lower than expected for June today.

Still, tariffs appear to be having an effect on inflation. U.S. businesses pay more in custom duties to get items from countries abroad and in turn can pass those costs to the consumer. The core goods inflation metric reflected that pass through today, rising 0.2% in June, the fastest one-month increase since February.

Household furnishings and supplies climbed 1% over the month, the most since January 2022. Apparel prices advanced 0.43%, the biggest increase since March, Neil Dutta from Renaissance Macro Research pointed out.

“Tariffs are showing up in all the expected places,” he added.

Inflation is not good news for the bond market and was a reason there was demand for higher yields today. Higher inflation lowers the future expected payout.

Higher yields also make bonds look more attractive for new buyers and at the margin drive capital away from stocks.

The 7-year, 5-year, 3-year, and 2-year yields were all at their highest levels since mid-June 2025. So was the 1-year bill yield, according to Tradeweb.

On the long-end, the 30-year was at 5.019%, its highest since mid-May.