AI optimism lifts tech stocks as Nvidia secures U.S. license for China-bound H20 chip; inflation print and bank results eyed next.
AI Chip Approval Triggers Rally in Tech Sector
Nvidia surged nearly 5% in premarket trading on July 15, after announcing that the U.S. government will greenlight export licenses for its H20 AI chip, paving the way for resumed sales to China. The chipmaker revealed in a blog post that U.S. authorities have reversed an earlier stance that blocked such shipments under tightened trade restrictions. This development is seen as a major revenue booster for Nvidia, which had written off billions in potential sales due to the embargo.
The timing is crucial as markets brace for the release of June’s U.S. Consumer Price Index (CPI) later in the day and earnings reports from major U.S. banks. Investors see Nvidia’s news as a signal of easing U.S.–China tech tensions, a potential tailwind for broader sentiment.
Nvidia (NVDA) jumped 5% in early trade
H20 chip sales to China may resume immediately
U.S. CPI data and bank earnings in focus today
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Index Futures React Positively; Tech in Lead
Following the Nvidia update, S&P 500 futures (ES=F) rose 0.3%, and Nasdaq 100 futures (NQ=F) climbed 0.5%, with tech stocks leading the pre-market rally. In contrast, Dow futures (YM=F) dipped 0.2%, suggesting a divergence as investors rotate into growth and AI plays.
From a technical standpoint, Nvidia is approaching key resistance near $145, with its 14-day RSI nearing overbought territory. Analysts expect further upside if the stock sustains above this level on strong volumes.
“This move reopens a multibillion-dollar sales channel and affirms Nvidia’s dominance in the global AI chip market,” said Fawad Razaqzada, analyst at City Index.
S&P 500 and Nasdaq 100 futures gain on tech-led rally
Dow futures softer as cyclicals lag
Nvidia nearing $145 breakout zone
Broader Market Braces for CPI & Bank Earnings
The Nvidia-driven rally comes hours ahead of U.S. CPI inflation data, expected to rise 0.3% MoM and 2.4% YoY, up from May’s print. A hotter-than-expected number could affect expectations for a September Fed rate cut, currently priced in by a majority of futures traders.
Meanwhile, earnings from JPMorgan (JPM), Citi (C), and Wells Fargo (WFC) are due today, marking the start of Q2 results season. Investors will scrutinize their commentary on credit growth, consumer demand, and exposure to trade-related volatility.
CPI print expected at 8:30 a.m. ET
Fed rate path tied closely to inflation outlook
JPM, Citi, WFC kick off Q2 earnings season
Trading Setup & Stocks to Watch
Traders should stay cautious around the CPI print and central bank commentary in the days ahead. Volatility is likely to rise, especially in rate-sensitive sectors.
Watchlist:
Nvidia (₹145 breakout) – Technical upside on China boost
JPMorgan (Q2 results today) – Banking sector tone-setter
Gold (near $3,500/oz) – Safe haven appeal if inflation spikes
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