Dow Jones Futures: ASML Dives, Goldman Beats After Nvidia, AMD Can't Hide Market Woes; 3 Stocks In Buy Areas

Stocks

Summary:

Chip stocks like Nvidia and AMD rose after the U.S. allowed AI chip sales to China, but overall markets weakened. ASML tumbled on weak guidance, while Goldman and Johnson & Johnson beat earnings.

Dow Jones futures edged higher early Wednesday, while S&P 500 futures and Nasdaq futures fell slightly. Chip-gear giant ASML (ASML) tumbled on guidance with Goldman Sachs (GS) and more big banks beating earnings views. Another inflation report is on tap.

The stock market rally had a mixed session Tuesday, with the Nasdaq and S&P 500 hitting fresh highs intraday but closing near lows. Nvidia stock, Advanced Micro Devices (AMD), Taiwan Semiconductor (TSM) and other artificial intelligence chip plays rallied after Nvidia (NVDA) said the U.S. government will let it resume selling its H20 artificial intelligence chip to Chinese customers. AMD stock flashed a buy signal.

Also boosting AI plays were a slew of announcements by CoreWeave (CRWV) and many others as President Donald Trump took part in an energy and AI summit at Pittsburgh's Carnegie Mellon University.

But the overall market was weak, with decliners easily outpacing winners. Treasury yields rose after the CPI report showed core inflation rising slightly, as key goods prices showed some Trump tariff pressures.

However, Twilio (TWLO), Sea (SE) and Tencent Holdings (TCEHY) flashed buy signals.

The video embedded in this article reviews Tuesday's market action and analyzes Twilio stock, Sea and Tencent.

Dow Jones Futures Today

Dow Jones futures rose 0.2% vs. fair value, buoyed by Goldman Sachs and Johnson & Johnson (JNL). S&P 500 futures fell a fraction and Nasdaq 100 futures gave up 0.2%. ASML and some other chip-gear giants are Nasdaq 100 members.

Crude oil fell 1%.

The PPI inflation report is due at 8:30 a.m. ET.

Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.

Key Earnings

ASML beat Q2 views, but the Dutch chip-equipment giant guided low on Q3 and couldn't confirm 2026 growth, citing "increasing uncertainty driven by macro-economic and geopolitical developments." ASML stock tumbled early Wednesday. Shares topped a short-term high Tuesday, which had offered a potential entry.

Applied Materials (AMAT), Lam Research (LRCX) and KLA Corp. (KLAC) all fell modestly in premarket trade.

Bank of America (BAC) beat on earnings but slightly missed on revenue. BofA rose slightly, signaling a move back to the 21-day line. BAC stock is below one buy point but above a handle entry.

Goldman Sachs and Morgan Stanley (MS) beat views. Goldman stock rose slightly while Morgan Stanley edged lower. Both have been trading tightly after hitting record highs recently.

Johnson & Johnson topped Q2 consensus and guided higher for the full year. JNJ stock rose modestly, signaling a move off the 200-day line and perhaps offering an early entry.

Stock Market Rally

The stock market rally started off with strong Nasdaq gains, buoyed by Nvidia, AMD and other AI plays, but underlying weakness became more obvious. The Nasdaq and S&P 500 hit record levels intraday, but the former came well off highs and the latter reversed lower. Financials were generally weak, with big bank earnings mixed.

The Dow Jones Industrial Average gave up 1% in Tuesday's stock market trading. The S&P 500 index sank 0.4%. The Nasdaq composite rose 0.2%. The small-cap Russell 2000 tumbled 2%.

Notably, the Invesco S&P 500 Equal Weight ETF (RSP) sank 1.4% and the First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) gave up 0.7%.

While the underlying market had a bad day, the overall picture remains strong.

U.S. crude oil prices fell 0.78% to $66.52 a barrel.

The 10-year Treasury yield rose six basis points to 4.49%, continuing a big rebound from just above 4.2% intraday on July 1.

ETFs

Among growth ETFs, the Innovator IBD 50 ETF (FFTY) rose 0.3%. The iShares Expanded Tech-Software Sector ETF (IGV) dipped about 0.1%. The VanEck Vectors Semiconductor ETF (SMH) popped 1.9%. Nvidia is the No. 1 holding on SMH, with AMD and ASML also big players.

ARK Innovation ETF (ARKK) fell 1.4% and ARK Genomics ETF (ARKG) plunged 3.7%.

Meanwhile, SPDR S&P Metals & Mining ETF (XME) declined 0.4%. The Energy Select SPDR ETF (XLE) retreated 1.4% and the Health Care Select Sector SPDR Fund (XLV) skidded 1.8%.

The Industrial Select Sector SPDR Fund (XLI) dropped 0.75%.

The Financial Select SPDR ETF (XLF) shed 1.7%

Nvidia Stock Rises

Nvidia stock rose 4% to 170.70, hitting a fresh high intraday. NVDA stock now has a $4.165 trillion market cap.

The AI giant announced late Monday that it will soon resume selling its H20 chip to Chinese customers, after the U.S. government told Nvidia that it would grant licenses. The H20 GPU was designed to comply with U.S. government restrictions on exports of advanced chips to China, but the Trump administration had halted those sales in April.

AMD stock leaped 6.4% to 155.61, moving well past an aggressive entry of 147.75. AMD plans to restart MI 308 GPU shipments to China as well.

Broadcom (AVGO) climbed 1.9% to 280.94, near record highs. On Tuesday, Broadcom released its latest Ethernet switch, Tomahawk Ultra.

Taiwan Semiconductor stock climbed 3.6% to 236.95. Taiwan Semi, which reports Q2 earnings Thursday, makes chips for Nvidia, AMD, Broadcom and more.

Super Micro Computer (SMCI) popped 6.9% to 53.17. The AI server maker is an Nvidia partner. SMCI stock is now extended from a 50.55 handle buy point from a messy, deep five-month consolidation.

CoreWeave stock ran up 6.1% to 140.49, but hit resistance at the 21-day line. The Nvidia-backed cloud-computing IPO announced a new AI data center in Pennsylvania on Tuesday. CRWV stock popped 5.2% on Monday, rebounding from the 10-week moving average after diving 23.8% last week.

Stocks Topping Buy Points

Twilio stock jumped 6.1% to 140.49, clearing a new 125.52 buy point. TWLO stock fell solidly last week, below the 50-day line, as software struggled.

Sea stock leaped 4.7% to 158.19, breaking a downtrend in an emerging consolidation and retaking the 50-day line. The Singapore-based internet gaming and e-commerce giant will have a traditional 172.65 buy point after this week.

Tencent stock popped 3.6% to 65.97, retaking the 50-day line and breaking the downtrend from the top of the handle or top of the base. The Chinese internet giant's traditional cup-with-handle buy point is 66.74, according to MarketSurge. Nvidia being able to sell H20 chips to China is good news for Tencent and other China tech giants.

What To Do Now

The stock market rally had a deceptively weak day, though many leaders did well and most others held up fine.

The past couple of weeks have seen leading stocks on their own or within specific groups or themes have big moves up or down. Investors can mitigate the risks by diversifying leadership or using sector or market ETFs.

Investors should be heavily invested, so can afford to be choosy with potential new buys. But definitely have watchlists ready.

Nvidia and Broadcom stock are on IBD Leaderboard, with CoreWeave on the Leaderboard watchlist. Nvidia, CoreWeave and Taiwan Semiconductor stock are on the IBD 50. Nvidia stock is on IBD Sector Leaders.

source :investors

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Warren Takunda

Cryptocurrency

A trio of cryptocurrency bills that had been expected to pass the House this week stalled Tuesday after a bloc of Republicans unexpectedly joined with Democrats to prevent the legislation from coming up for debate and votes.

The procedural snafu brought the House’s so-called “crypto week” to a standstill — and dealt a blow to President Donald Trump, who had strongly urged Republicans to pass the bills as part of his push to make the U.S. the “ crypto capital of the world.”

Trump intervened during a late evening meeting with Republicans at the White House, and appeared to put the bills back on track. He posted on social media that he expected votes as soon as Wednesday.

A group of 13 Republicans had joined all Democrats in opposition to a procedural vote needed to bring the crypto bills to the floor. Speaker Mike Johnson told reporters it was just part of the “legislative process” and that negotiations were underway between the House, Senate and White House. He suggested they could try again Tuesday evening.

“We expected there might be some ‘no’ votes, but we thought it was important to put it on the floor to advance it because time’s of the essence on this,” Johnson said. “So stay tuned. We’ll have lots of discussions over the next few hours.”

But just hours later, House leadership canceled votes for the remainder of the day, potentially throwing the crypto bills into limbo.

Then, late in the evening, Trump posted that he was having a White House meeting with lawmakers and had won their support to vote for the procedural step.

“I am in the Oval Office with 11 of the 12 Congressmen/women necessary to pass the GENIUS Act and, after a short discussion, they have all agreed to vote tomorrow morning in favor of the Rule,” Trump said on social media, referring to the step.

The president said that Johnson attended via telephone “and looks forward to taking the Vote as early as possible.”

The stalled legislation includes a Senate-passed bill to regulate a form of cryptocurrency known as stablecoins, along with far more sweeping measures aiming to address cryptocurrency market structure. Another bill would prohibit the Federal Reserve from issuing a central bank digital currency.

The disagreement blocking the bills from advancing centers on how the three bills would be passed. Johnson explained that “some of these guys insist that it needs to be all in one package.” Packaging the bills would require them to be sent back to the Senate, since the chamber has only taken up one of the three bills so far.

Rep. Glenn Thompson of Pennsylvania, a Republican co-sponsor of one of the cryptocurrency bills, told reporters that some of the Republicans wanted to package the bills together due to them “not having a lot of faith in the Senate moving our legislation.”

Trump and Republican leaders have called on the House to pass the bills individually, so that the stablecoin legislation can get to Trump’s desk for his signature before an August recess. The stablecoin legislation took the Senate nearly a month and half to pass, and the more sweeping market structure legislation is expected to take even longer.

In a post Tuesday morning on social media, Trump had called on Republicans to advance the crypto bills that afternoon, saying that “all Republicans should vote ‘yes.’” Asked Tuesday evening about the stalled legislation, Trump told reporters that Republicans who voted against it wanted it to be “stronger.”

Trump has pushed hard for the passage of the stablecoin legislation, with him and his family standing to profit from a boost to stablecoins. They hold a significant stake in World Liberty Financial, a crypto project that recently launched its own stablecoin, USD1.

The stablecoin legislation passed by the Senate includes a provision that bars members of Congress and their families from profiting off stablecoins. But notably, that prohibition does not apply to the president or his family, even as Trump builds what some are calling a crypto empire from the White House.

The cryptocurrency industry hopes the bills as a whole will aid in their push for legitimacy and increasing consumer trust. And road bumps like those seen Tuesday may not have been expected after spending heavily in the 2024 election to elect a large number of crypto-friendly lawmakers.

Faryar Shirzad, chief policy officer of Coinbase, the nation’s largest cryptocurrency exchange, said in a statement after the failed procedural vote that “every few steps forward there’s inevitably a step back.”

“It’s in these moments we’ll see who is trying to get pro-crypto legislation done and who is not,” Shirzad said on social media.

Passage of the bills could have implications on the 2026 midterm races. Fairshake, a crypto super political action committee, said that it and its affiliated organizations already have more than $140 million in the bank ready to spend on midterm races.

“The voters last year were clear — Congress needs to stop playing politics with crypto and finally pass responsible regulation,” said Josh Vlasto, spokesperson for Fairshake. “We are building an aggressive, targeted strategy for next year to ensure that pro-crypto voices are heard in key races across the country.”

Source: AP

Risk Warnings and Disclaimers

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Adam

Economic

Expectations are a funny thing. When we say that something meets expectations, we tend to mean it in a positive way, suggesting that a hurdle has been cleared or the result is welcome.

But what happens when we expect something bad, and the outcome meets expectations?

The U.S. consumer price index in June, as reported by the Bureau of Labor Statistics on Tuesday, matched the Dow Jones consensus estimate. And there was even a pleasant surprise: Core inflation, which excludes volatile food and energy prices, rose 0.2% on the month, which was 0.1 percentage points below expectations.

That said, both the headline and core inflation numbers, on an annual basis, hit their highest since February.

“The latest U.S. inflation report practically confirmed that President Trump’s tariffs acted to push up consumer prices in June,” said Matthew Ryan, head of market strategy at global financial services firm Ebury.

Hence, while the inflation figures didn’t surprise market watchers and investors — markets really dislike unpredictability — the fact that the downbeat expectations were realized still weighed on stocks, which mostly fell on the news.

As yesterday’s market movements illustrate — and as many of us, after going through performance reviews with our supervisors, know — sometimes, meeting expectations isn’t good enough.

What you need to know today

A preliminary U.S.-Indonesia deal. U.S. President Donald Trump said Tuesday that under the trade agreement, U.S. exports from Indonesia will face a 19% tariff, while American goods will enter the Southeast Asian country tariff-free. Jakarta has yet to confirm the deal.

Nvidia CEO praises China’s AI sector. Speaking at a supply chain expo in Beijing on Wednesday, Jensen Huang named DeepSeek and Ernie bot as “world class” models. He also lauded Chinese companies’ open-source approach to AI, saying it is a “catalyst for global progress.”

The Nasdaq Composite hits a record. A 4% jump in Nvidia boosted the tech-heavy index, even as the S&P 500

and Dow

retreated Tuesday. Asia-Pacific markets mostly fell Wednesday. Shares of Chinese toymaker Pop Mart slumped over 6% despite issuing a bullish outlook.

ASML’s second-quarter earnings smash expectations. The Dutch chip equipment maker beat estimates on net sales and net profits by around $200 million euros. However, ASML

forecast its revenue for the current quarter will come in below market expectations.

[PRO] Fund managers are bullish on European stocks. A Bank of America survey of European fund managers found that 81% of respondents saw upside for the region’s equities in the coming 12 months.

And finally...

Traditionally, central banks acquire gold through the global over-the-counter market — typically centered in London — where gold is transacted via major bullion banks, priced in U.S. dollars, euros, or sterling.

However, 19 out of 36 respondents in the World Gold Council’s latest central bank survey said they are buying gold directly from domestic artisanal and small-scale gold miners in local currency. Four are thinking of following suit.

Source: cnbc

To stay updated on all economic events of today, please check out our Economic calendar

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Michelle

Economic

Commodity

The gold market remains stuck in neutral, holding solid support above $3,300 an ounce but unable to gain significant traction, even as wholesale inflation pressures remained unchanged last month.

The headline Producer Price Index (PPI) was flat in June, following a 0.1% increase in May, the U.S. Labor Department announced on Thursday. The latest inflation data came in cooler than expected, as the consensus forecast had called for a 0.2% increase.

Over the past 12 months, headline wholesale inflation rose 2.3%, according to the report. Annual inflation was also weaker than expected, with economists anticipating a 2.5% increase. The prior month’s annual inflation figure was revised higher to 2.7%, up from the initial estimate of 2.6%.

Excluding volatile food and energy prices, core PPI was also unchanged last month, following a 0.1% rise in May. According to consensus estimates, economists had forecast a 0.2% increase.

According to some analysts, the headline inflation data should provide some support for gold, as it indicates inflation pressures are relatively under control—potentially giving the Federal Reserve room to cut interest rates later this year.

However, some economists also note that economic uncertainty and inflation fears remain elevated due to President Donald Trump’s import tariffs and the ongoing global trade war. PPI is considered a leading inflation indicator, as producers typically pass higher input costs on to consumers.

Spot gold last traded at $3,333 an ounce, up 0.31% on the day.

Source: Kitco

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Warren Takunda

Economic

London stocks had nudged into the black by midday on Wednesday, as investors mulled a hotter-than-expected UK inflation print.

The FTSE 100 was 0.1% firmer at 8,950.13.

Figures released earlier by the Office for National Statistics showed that annual inflation rose to 3.6% in June from 3.4% in May, versus expectations for it to remain unchanged. This marked the highest since January 2024, when it was 4.0%.

The ONS said transport, particularly motor fuels, made the largest upward contribution.

Food price inflation also increased for the third consecutive month, to 4.5% - its highest annual rate since February 2024.

Core inflation - which excludes energy, food, alcohol and tobacco - increased to 3.7% from 3.5%. Analysts were expecting it to remain unchanged.

ONS acting chief economist Richard Heys said: "Inflation ticked up in June driven mainly by motor fuel prices which fell only slightly, compared with a much larger decrease at this time last year.

"Food price inflation has increased for the third consecutive month to its highest annual rate since February of last year. However, it remains well below the peak seen in early 2023."

Martin Sartorius, principal economist at the Confederation of British Industry, said: "June’s stronger-than-expected inflation print will raise concerns that recent price pressures - driven by higher household energy prices and the passthrough of increased employment costs - could potentially re-entrench inflation in the economy.

"While we still expect the Bank of England’s Monetary Policy Committee to continue gradually cutting rates, today’s upside inflation surprise means its August decision will be finely balanced. Underlying price pressures show signs of easing as the labour market cools, which should support a rate cut. However, some members of the MPC will be wary of loosening too quickly and, consequently, risk inflation remaining above target for longer."

In equity markets, Intermediate Capital Group was the standout performer on the FTSE 100 as it said assets under management rose 3% in the first quarter to $123bn, with fee-earning AUM up 4% to $82bn.

Elsewhere, Hiscox jumped after an upgrade to ‘overweight’ by Morgan Stanley.

Rio Tinto gained as it revealed that US tariffs added $300m in first half costs on aluminium exports from Canada, but also said that annual copper output would be at the higher end of estimates.

Rio said that while a "substantial" part of the extra cost was offset by higher premiums on US sales when the 25% tariff was introduced in March, the premium could no longer fully compensate when President Donald Trump doubled duties on Canadian aluminium to 50% in June.

The mining giant also said annual copper production was now expected to be at the higher end of estimates after a 13% rise in output during the second quarter due to the successful ramp up of the Oyu Tolgoi underground mine and good performance at Escondida.

Bloomsbury Publishing advanced as it said full-year results were on track to meet targets, driven by the ongoing popularity of blockbuster authors such as Sarah J Maas and JK Rowling.

Bytes Technology was boosted by an upgrade to ‘buy’ from ‘hold’ at Jefferies, which cited an attractive risk/reward.

On the downside, AstraZeneca fell after it said its investigational treatment for amyloidosis failed to show a statistical significance in late-stage trials. AL amyloidosis is a rare, progressive disorder caused by defective plasma cells in bone marrow.

Recruiter Hays was knocked lower by a downgrade to ‘underweight’ from ‘equalweight’ at Morgan Stanley.

Source: Sharecast

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Blue River

Technical Analysis

USD/JPY advanced above its 200-day exponential moving average (EMA) for the first time since February on Tuesday, while slightly extending its ascent to a new three-month high of 149.17 earlier today before losing momentum.

The bullish price action coincides with growing political uncertainty in Japan, as the ruling Liberal Democratic Party and its coalition partner face the risk of losing their majority in the upper house in Sunday’s election. However, a sustained move higher remains uncertain, given that the price has closed above the upper Bollinger Band and both the RSI and stochastic oscillator are signaling overbought conditions.

A decisive breakout above the 50% Fibonacci retracement of the January–April downleg could pave the way for an extension toward the 151.00 barrier and the 61.8% Fibonacci level at 151.60. A move beyond that point may open the door for a rally toward 154.70.

On the downside, if bullish pressure fades, the price could find immediate support between the 200-day EMA at 147.85 and the 38.2% Fibonacci level at 147.13. Further declines may stabilize near 145.85. However, only a drop below 143.35 would signal a bearish trend reversal.

Overall, USD/JPY appears cautious, as overbought conditions hint at a possible pullback or consolidation in the short term. The next bullish phase is likely to resume above 149.40.

Source: ACTIONFOREX

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Michelle

Political

Israel intensified its attacks on Syria, striking the country’s military headquarters in Damascus around midday on Wednesday.

The Israel Defense Forces, which announced the strike on the gates of the facility, said it is also hitting southern Syria and is “prepared for various scenarios.”

Israel has stepped operations in Syria since Monday and says it’s acting in defense of the Druze community, a minority group the Jewish state has pledged to protect.

Syria’s state-run agency reported an explosion in Damascus and drone attacks in Suwayda, a southern part of the country close to Israel. There have been deadly clashes in Suwayda in recent days between Druze and Bedouin groups. Syria’s government has moved troops into the area and says it’s trying to quell the violence.

Earlier on Wednesday, Israeli Defense Minister Israel Katz said the military will “continue to attack regime forces until they withdraw” from Suwayda and “will also soon raise the bar of responses against the regime if the message is not understood.”

The US asked Israel to stop its strikes on Syria, an Axios reporter said on Tuesday. The reporter, citing an unnamed US official, said Israel promised to cease strikes on Tuesday evening.