Markets in Turmoil: Trump's Tariffs Shake Wall Street, But China and Nvidia Steal the Show

Wall Street's reeling from Trump's latest tariff tantrum, yet traders can't keep their eyes off China. The U.S. stock market's all over the place, with investors scrambling to make sense of the chaos.

On July 15th, the Dow Jones took a nosedive, plummeting 320 points, a gut-wrenching 0.72% drop. The S&P 500 wasn't far behind, slipping 0.13%. But hold onto your hats, because the tech-heavy NASDAQ Composite defied gravity, soaring 100 points, or 0.53%, thanks to Nvidia's stellar performance that had tech stocks popping champagne.

Traders were glued to the latest U.S. tariff drama, but the June consumer inflation report dropped a bombshell: the first signs of tariff-driven inflation. The Consumer Price Index skyrocketed 2.7% annually and 0.3% month over month, a clear sign that Trump's tariffs are hitting us where it hurts.

Surprisingly, the market didn't totally freak out like it did back in April. Some say it's because no one believes Trump will actually go through with his threats. But let's not forget the elephant in the room: China.

China Missing from Trump's Tariff Threats, Nvidia Soars

China's the U.S.'s biggest trading partner, feeding our high-value industries and gobbling up our products like candy. And nowhere is this more true than in the tech world, especially for Nvidia.

Nvidia's riding high on positive trade vibes, with its stock shooting up 4% and flirting with record levels again. The chip giant's celebrating after announcing they can sell their H20 GPUs to China, a move that could make up for the billions lost when the U.S. banned those fancy AI chips.

If the U.S. can cool it with the trade war against China, maybe we can brush off the tariff hits from smaller players. But don't get too comfy - the impact on inflation and growth could still pack a punch.