Wall Street closed with diverging performances Tuesday as the Nasdaq Composite eked out gains while cryptocurrency-related stocks declined. The US House of Representatives plans a second procedural vote around 17:00 ET (05:00 Beijing time) on crypto-related legislation, according to Fox News. Presidential frustration mounted as communication continues with lawmakers blocking the bill's progress, following an earlier failed procedural vote.

At market close, the Dow Jones Industrial Average plunged 436.36 points (0.98%) to 44,023.29. The Nasdaq Composite edged up 37.47 points (0.18%) to 20,677.80, while the S&P 500 retreated 24.80 points (0.40%) to 6,243.76. Nvidia (NVDA.US) surged 4% to another record high, with AMD (AMD.US) climbing 6.4%. Cryptocurrency-linked stocks faltered: MicroStrategy (MSTR.US) slid 1.93%, CRCL (CRCL.US) tumbled 4.58%, and Marathon Digital Holdings (MARA.US) dropped 2.34%. The Nasdaq Golden Dragon China Index jumped 2.7%, propelled by Alibaba (BABA.US)'s 8.1% rally.

European markets retreated broadly: Germany's DAX fell 104.52 points (0.43%) to 24,061.15; the UK's FTSE 100 lost 59.90 points (0.67%) to 8,938.16; France's CAC 40 declined 41.96 points (0.54%) to 7,766.21. The Europe Stoxx 50 dipped 16.10 points (0.30%) to 5,354.75, while Spain's IBEX 35 plunged 173.69 points (1.24%) to 13,867.11. Italy's FTSE MIB dropped 272.35 points (0.68%) to 39,914.00.

Asian-Pacific markets showed mixed results: Japan's Nikkei 225 declined 0.55%, South Korea's KOSPI gained 0.41%, and Indonesia's Composite Index rose 0.61%.

The US Dollar Index strengthened 0.55% to 98.616. Major currency pairs shifted: the euro weakened to $1.1603 from $1.1670; sterling fell to $1.3390 from $1.3428. The dollar strengthened against the yen (¥148.85 from ¥147.76), Swiss franc (CHF0.8018 from CHF0.7979), Canadian dollar (C$1.3716 from C$1.3700), and Swedish krona (SEK9.7228 from SEK9.6099).

Commodities saw declines: NYMEX August crude fell $0.46 (0.69%) to $66.52/barrel; ICE September Brent dropped $0.50 (0.72%) to $68.71/barrel. Spot gold slipped 0.52% to $3,325.32/ounce. Cryptocurrencies diverged: Bitcoin declined 1.99% to $117,456.90 while Ethereum gained over 2% to $3,080.98.

June inflation data showed US CPI rose 0.3% month-over-month – the largest increase since January – following May's 0.1% gain. Year-over-year CPI increased to 2.7% from 2.4%. Core CPI rose 0.2% monthly and 2.9% annually, exceeding the prior three-month 2.8% trend. Tariff-driven goods inflation was partially offset by moderated service cost increases, with weak demand curbing prices for airfares, hotels, and motels.

Fed policymakers maintained caution regarding rate cuts despite June's figures. The Wall Street Journal's Nick Timiraos noted the report offers little reason for officials to alter their tariff-inflation expectations, making July and August data crucial. Recent remarks by Chair Jerome Powell suggested a marginally lower threshold for easing policy, potentially opening the door for September rate cuts if labor market conditions soften or inflation improves.

Housing inflation moderated within services, though Fed officials prioritize the PCE index – which assigns lower weight to housing – when assessing inflation trajectories. Wednesday's producer price report will inform upcoming PCE data.

President Trump announced a landmark agreement with Indonesia securing comprehensive US market access. Indonesia committed to purchasing $15 billion in US energy products, $4.5 billion in agricultural goods, and 50 Boeing aircraft. Indonesian exports to the US will face 19% tariffs, while US exports enter Indonesia duty-free. Transshipped goods may incur additional tariffs based on origin-country rates.

Canadian Prime Minister Justin Trudeau cautioned that US tariffs may persist long-term, noting significant hurdles in tariff removal negotiations. Analysts suggest tariffs could settle between 10%-20% after August 1, when 35% duties take effect. Trump views tariffs as operational taxes businesses should absorb.

New York manufacturing activity expanded for the first time since February, with the Empire State Index surging 21.5 points to 5.5 in July. New orders increased modestly while inventories jumped significantly. Despite lingering tariff concerns and extended delivery times, business optimism remained steady with rising capital expenditure plans.

Tesla (TSLA.US) faced continued executive departures as North American sales chief Troy Jones exited after 15 years amid slumping deliveries. This follows June's departure of manufacturing/sales executive Omead Afshar and HR director Jenna Ferrua. Earlier, AI engineering VP Milan Kovac – instrumental in Optimus robot development – left the company. Tesla executives increasingly emphasize autonomous driving and robotics investments over near-term delivery concerns.

Nvidia's (NVDA.US) H20 chip returned to China's market amid surging domestic demand. Multiple Chinese chipmakers reported sold-out capacity over the past three months, with companies like Kunlunxin and Cambricon experiencing order surges. Domestic GPU manufacturers are targeting H20 alternatives by enhancing inference chip capabilities – optimizing model compatibility, expanding memory capacity, accelerating data transfer, and improving energy efficiency. Industry analysts note numerous domestic substitutes now compete directly with H20 on specifications and pricing.

Oppenheimer raised price targets for Broadcom (AVGO.US) from $265 to $305 and for Nvidia from $175 to $200.