Focusing on the US CPI and bank earnings reports, NVIDIA restarts H20 sales to China with an increase of over 3%, Alibaba rises over 6% in pre-market trading, and Bitcoin retracts its gains

Before the release of key CPI data and major bank earnings in the United States, according to CCTV reports, the news that NVIDIA has been approved to resume some chip sales to China has boosted global stock markets and injected optimism into the market.

Affected by this news, European stock markets rose by 0.2%, with technology stocks leading the gains; Nasdaq 100 index futures rose by 0.5%, and S&P 500 index futures climbed by 0.3%, while Asian stock markets also moved higher. Meanwhile, U.S. Treasury prices rose slightly, the dollar weakened, and Bitcoin fell due to profit-taking.

• In pre-market trading, NVIDIA rose over 3%, with Jensen Huang announcing that it would begin selling H20 chips to the Chinese market. Popular Chinese concept stocks collectively strengthened, with Alibaba rising over 6%.
• European stocks opened higher across the board, with the Euro Stoxx 50 index up 0.30%, the German DAX index up 0.24%, and the UK FTSE 100 index up 0.12%.
• The U.S. dollar spot index fell by 0.1%.
• The euro rose by 0.2% against the dollar to 1.1689 USD.
• The yen against the dollar remained relatively unchanged at 147.74.
• The yield on 10-year U.S. Treasury bonds fell by 1 basis point to 4.42%.
• Spot gold rose by 0.6% to 3363.15 USD per ounce.
• Bitcoin briefly fell by 3.2%, marking the largest drop in over three weeks, with a price of 117,386 USD.

Chip License Seen as Positive for the Industry

In pre-market trading, NVIDIA rose over 3%, with Jensen Huang announcing that it would begin selling H20 chips to the Chinese market. Popular Chinese concept stocks collectively strengthened, with Alibaba rising over 6%.

According to CCTV News, Jensen Huang stated that the U.S. government has approved the export license, allowing the sale of H20 chips to the Chinese market. For investors, the impact of this move extends beyond NVIDIA itself. David Kruk, trading director at La Financiere de L’Echiquier, stated:

“The U.S. policy reversal on the sale of AI chips to China is clearly good news for the entire industry.”

He added that the current upward trend in the market is still driven by investors chasing “TACO trades.”

Jensen Huang also mentioned that NVIDIA will launch a new RTXpro GPU, specifically designed for computer graphics, digital twins, and artificial intelligence. This not only boosts NVIDIA's earnings expectations but also brings good signs for progress in trade negotiations between the White House and major partners.

Market Focus Shifts to Inflation Data and Bank Earnings

Driven by the positive news on chips, the stock market has traded near record highs. However, the next test for the market is approaching.

Investors will look to the upcoming Consumer Price Index (CPI) and earnings reports from major banks such as JP Morgan to more clearly assess corporate health and determine whether the current market highs are sustainable.

[The market bets on core CPI month-on-month](https://wallstreetcn.com/articles/3751115? The keyword (CPI) will accelerate to 0.3%. Major investment banks generally believe that the transmission of tariff prices will accelerate in the second half of the year. Goldman Sachs estimates that tariffs will raise the prices of household goods by 0.08 percentage points, while JP Morgan warns of upward inflation risks. However, Wells Fargo states that the tariff impact is more like "bumpy rather than soaring." Currently, the monetary market only sees a 5% probability of a rate cut in July, with expectations for two rate cuts throughout the year remaining stable.

In terms of market volatility, according to Citigroup's data, the options market is betting that the S&P 500 index will experience a 0.6% movement in either direction after the CPI data is released on Tuesday. This implied volatility is consistent with the situation over the past two months but lower than the average actual volatility of 0.9% over the past year.

Bitcoin Profit Taking

Bitcoin once fell by 3.2%, marking its largest decline in over three weeks, currently at $116,791. The second-ranked Ethereum dropped by 1.4%, while other smaller tokens, including XRP and Solana, also fell by nearly 2%.

Bitcoin's price first broke through $123,000 on Monday, driven by optimistic sentiment regarding potential progress in U.S. digital asset legislation, which could advance Trump's cryptocurrency-friendly agenda. With concerns about the economic impact of Trump's new trade war easing, cryptocurrencies also benefited from the recent rebound of other risk assets, including U.S. stocks nearing record highs.

Stefan von Haenisch, the Director of Over-the-Counter Trading for Bitgo Inc. in the Asia-Pacific region, said:

"This is just a standard pullback after the market got overheated."

He added that Bitcoin's next key support level is $114,000, a price point that previously triggered a large number of short covering