Stock Market Update

[BRIEFING.COM] While the major averages trade in a mixed disposition, gains in the Nasdaq Composite (+0.2%) have seen the index chart new all-time highs amid some notable trade and geopolitical developments. 

Sector strength is mixed today, with no S&P 500 sector holding a gain or loss wider than 0.6%. Breadth figures are also razor thin. The relative lack of conviction suggests that the market is still largely awaiting tomorrow's release of July CPI data to influence a more decisive move.

Regardless, the Nasdaq Composite (+0.2%) and S&P 500 (+0.1%) hold modest gains for the day, while the DJIA (-0.3%) lags the group.

The consumer discretionary sector (+0.5%) leads the way, as the sector is seeing strong leadership from Tesla (TSLA 345.67, +16.02, +4.86%) following headlines that the company submitted a formal license request to become an electricity provider in the U.K., according to CNBC.

The information technology sector (+0.3%) is the next best performer, though its modest gains mask a relatively busy morning for the sector from a headlines perspective. 

Shares of NVIDIA (NVDA 183.40, +0.70, +0.39%) and Advanced Micro Devices (AMD 175.00, +2.24, +1.30%) traded lower before the open after Financial Times reported that both companies will concede 15% of their AI chip sales in China to the U.S. government in exchange for export licenses. 

President Trump remarked in a press conference today that while the chips NVIDIA is selling to China are less advanced, there is a possibility that we could sign off on the sale of the more advanced Blackwell chips for a 30-50% fee.

Chipmakers also benefit from Micron (MU 122.18, +3.28, +2.76%) raising its fiscal Q4 (Aug) EPS and revenue guidance above consensus, citing improved pricing and strong execution, and reports that Intel (INTC 20.88, +0.92, +4.64%) CEO Lip-Bu Tan will visit the White House to discuss a variety of topics with President Trump, according to The Wall Street Journal.

The PHLX Semiconductor is up 0.8% today.

In the same press conference in which President Trump spoke about NVIDIA, he did not give a definitive answer as to whether the trade deadline with China will be extended but noted that China has been "dealing nicely" and "we will see what happens."

On the geopolitical front, the president expressed optimism that his summit with Russian President Vladimir Putin will result in an end to the war in Ukraine. The Telegraph reports that Ukrainian President Volodymyr Zelenskyy told other European leaders that while he is not willing to concede any territory that is currently held by Ukraine, territory that Russia currently occupies could be negotiated as part of a ceasefire deal.