Dow falls as markets enter CPI waiting game amid Hormuz impasse
11:40am: Nvidia’s $500B AI financing push
Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) (Nvidia Corp (NASDAQ:NVDA, XETRA:NVD), Nvidia Corp (NASDAQ:NVDA, XETRA:NVD)) is partnering with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR to build financing platforms aimed at mobilizing more than $500 billion in third-party capital for AI infrastructure.
The agreements, structured as memorandums of understanding, are designed to let outside investors fund the buildout of data centers, power and other AI infrastructure without adding directly to Nvidia’s balance sheet.
Under the arrangements, the six financial institutions would help channel capital to independent platforms building AI infrastructure based on Nvidia hardware, rather than Nvidia financing the projects itself.
Shares of Nvidia were up around 1% on Tuesday.
11:00am: Hiring slows for sixth week
Some fresh economic data dropped on Tuesday morning.
US private hiring continued to lose momentum, with employers adding an average of just 8,250 jobs per week in the four weeks through July 25, according to ADP. That was down sharply from an average of 21,000 weekly jobs in the four weeks through June 20, marking the sixth straight week of slowing private-sector hiring.
Meanwhile, existing home sales fell 1.7% in July to a seasonally adjusted annual rate of 4.06 million, though that was slightly ahead of expectations. The median home price rose 2% from a year earlier to $434,100, while inventory climbed to 1.54 million homes, giving buyers more options despite still-elevated prices.
10:00am: Investors await next inflation signal
US stocks opened quietly on Tuesday, with the Dow Jones and S&P 500 edging higher while the Nasdaq slipped, as investors largely stayed on the sidelines ahead of tomorrow’s closely watched inflation report.
The Dow was up 199 points, or 0.4%, at 54,175, while the S&P 500 added 0.1% to 7,762. The Nasdaq fell 0.1% to 26,586.
Markets are still digesting last Friday’s softer-than-expected US jobs report, which eased expectations for a hawkish Federal Reserve. But with the July Consumer Price Index due Wednesday, investors appear reluctant to make big moves until they get a clearer read on the inflation picture.
“Today, the cautious mood will likely remain in play, as investors stay on the sidelines before tomorrow’s closely monitored US CPI update,” said Ipek Ozkardeskaya, senior analyst at Swissquote.
She noted that uncertainty around the Fed’s policy outlook is also adding to investor caution, particularly as markets assess the independence of new Fed Chair Kevin Warsh and the central bank’s response to renewed inflation pressures.
“Therefore, US data matters even more as the Fed becomes more opaque, as the market will have to do the heavy lifting in the absence of clear Fed guidance,” Ozkardeskaya said.
Away from the macro picture, Nvidia was in focus after saying it will partner with six major financial firms, including BlackRock and Goldman Sachs, on a potential $500 billion financing initiative to support its artificial intelligence build-out.
Intel also moved into the spotlight after increasing the size of its planned new share offering by $5 billion to $20 billion.
Rocket Lab shares fell despite the company highlighting a record backlog and expansion plans, as investors focused on mixed quarterly results.
On the economic calendar, the NFIB small-business optimism index climbed to its highest level since August 2025.
For now, however, Wall Street appears content to wait. Wednesday’s CPI report could provide the next major catalyst for stocks, bonds and expectations for the Fed’s next move.
Ahead of the bell
The Nasdaq is expected to lead a tentative recovery on Wall Street when trading gets underway, with investors on edge ahead of the release of July CPI data tomorrow. Nasdaq futures point to a 0.3% gain, S&P 500 futures are up 0.2%, and Dow futures are 0.1% higher.
The Nasdaq led Wall Street lower at Monday’s close, down 0.3%, with the Dow off 0.1% and the S&P 500 down just 4 points, as surging oil prices put inflation and rate expectations back in focus.
“Markets are heading into US CPI with inflation anxiety back in the driving seat, as Brent’s four-day surge forces investors to rethink last week’s post-payrolls relief,” said Tickmill Group’s Patrick Munnelly. “Government bonds are selling off across Asia-Pacific, the dollar remains firm, gold has broken higher, and the yen is again under pressure. The central issue is straightforward: softer US jobs data reduced the odds of an immediate Fed hike, but oil near $88/bbl makes it much harder for policymakers to sound comfortable.”
US 10-year yields rose 6bps to 4.71% ahead of the Asian session, with Treasury futures weakening and regional bonds following the US lead, despite cash Treasury trading being closed for a Japanese holiday.
Brent crude is holding near $87.75/bbl after a four-session rally that’s pushed it over 12% above last week’s low, as hopes of reopening the Strait of Hormuz fade following President Donald Trump’s fresh demand for compensation from Iran.
With Friday’s soft jobs data no longer enough to ease inflation worries alone, Munnelly said the oil-driven CPI risk is putting the Fed in an increasingly awkward spot.
Meanwhile, across the Atlantic, London’s FTSE 100 spent much of the morning session in and out of the red and is currently flat. The Paris CAC 40 has drifted a few points lower, while the XETRA Dax in Frankfurt is 0.1% firmer.