NEW YORK (AP) — U.S. stocks are drifting following some mixed data on inflation and profits at some of the biggest U.S. banks.

The S&P 500 was up 0.2% in early trading Tuesday, close to the all-time high set on Thursday.

The Dow Jones Industrial Average was down 88 points, or 0.2%, and the Nasdaq composite was up 0.6%.

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Nvidia helped lead tech stocks higher after the chip giant won approval from the U.S. government to sell its advanced H20 computer chips used for artificial intelligence to China. Nvidia rose 3.2%

Shares of major U.S. banks were mixed after several of them released their latest quarterly earnings reports. JPMorgan Chase slipped 0.5% despite beating analysts’ profit forecasts. A closely watched measure of profitability rose less than expected. Citigroup rose 1.4% after reporting profits that beat forecasts.

The Labor Department reported that inflation rose last month to its highest level since February as President Donald Trump’s sweeping tariffs push up the cost of a range of goods, including furniture, clothing, and large appliances. Prices paid by U.S. consumers rose 2.7% in June from a year earlier, up from an annual increase of 2.4% in May.

European markets were slightly higher. Germany’s DAX was up 0.2% and France’s CAC 40 was up less than 0.1%.

Hong Kong’s Hang Seng rose 1.6%. The Shanghai Composite dipped 0.4% after the Chinese government reported that China’s economy slowed in the last quarter as Trump’s trade war escalated.

Tuesday’s data showed the economy expanded at a robust 5.2% annual pace, compared with 5.4% annual growth in January-March.

Despite worries about the damage Trump’s tariffs may have on the region’s exporters, speculation continues that he may ultimately back down on them. They don’t take effect until Aug. 1, which leaves time for more negotiations.

If Trump were to enact all his proposed tariffs on Aug. 1, they would raise the risk of a recession. That would not only hurt American consumers but also raise the pressure on the U.S. government’s debt level relative to the economy’s size, particularly after Washington approved big tax cuts that will add to the deficit.

Attorney General Keith Ellison announced Monday that Minnesota has joined a coalition of 23 attorneys general and two states in suing the Trump administration over alleged frozen funding administered by the U.S. Department of Education.

Over $70 million in education funding for Minnesota is “believed to be” frozen by President Donald Trump’s administration, and $6.8 billion total across the country, according to a press release from Ellison’s office on Monday. The attorneys general argue that the funding freezes violate the Antideficiency Act, the Impoundment Control Act, the constitutional separation of powers doctrine and the Presentment Clause and ask for the release of the education funds.

“Donald Trump’s Department of Education is pulling the rug out from under Minnesota students by cutting school funding without warning and right before the start of the school year, and they are violating the law by doing so,” Ellison said in the Monday press release.

Minnesota currently has $156 million total federal funds “at risk” and has had $59 million in federal funding “permanently cancelled” since Trump took office in January, according to Minnesota Management and Budget’s daily report.

Ellison is joined by attorneys general of California, Colorado, Massachusetts, Rhode Island, Arizona, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Michigan, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Vermont, Washington and Wisconsin, as well as the states of Kentucky and Pennsylvania.

“We have repeatedly asked our federal partners for timely delivery of appropriated investments on which Minnesota students rely,” Willie Jett, Minnesota Department of Education commissioner, said in a press release. “Career and technical education, after-school programs, English language courses, and teacher training that strengthen our schools, workforce, and communities are now at risk in every corner of our state.”

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Two Brooklyn Park city councilmembers have launched campaigns to fill former Rep. Melissa Hortman’s House seat 34B in a special election set for Sept. 16.

Former Brooklyn Park City Council member Xp Lee announced his candidacy for former Rep. Melissa Hortman’s House seat on Monday, following current Brooklyn Park City Council member Christian Eriksen’s announcement on July 7. Neither candidate has officially filed for the race, according to the Secretary of State records.

The House currently stands at 66 Democrats and 67 Republicans with Hortman’s seat empty following her assassination on June 14.

Walz on July 11 called a special election for Hortman’s seat Sept. 16, setting a primary if necessary for Aug. 12. District 34B is in the northern metro and includes parts of Brooklyn Park, Coon Rapids and Champlin. Hortman represented Brooklyn Park in the House from 2004 to 2025, and won her last election in November 2024 with 63% of the vote.

Lee is a 20-year resident of Brooklyn Park, served on the Brooklyn Park City Council from 2022 to 2024 and currently works as a health equity staff member at the Minnesota Department of Health, according to his campaign.

“Brooklyn Park is our home, our heart and our future,” Lee said in the news release. “I’m running to continue building a community where everyone feels safe, supported and seen. From my service on the City Council to my work in health equity, I’ve seen the power of listening, leading and bringing people together. I want to take that same energy to the State Capitol.”

He has endorsements from Brooklyn Park City Council Member Amanda Xiong, Rep. Samantha Vang, Rep. Fue Lee and former State Representative Hodan Hassan, his campaign said. He paid tribute to Hortman in his campaign launch Monday.

“Melissa Hortman wasn’t just a powerful voice at the Capitol — she was our neighbor,” Lee said. “Her legacy of principled, visionary leadership continues to inspire me. I’m committed to honoring her work and carrying forward the progress she helped build.”

Eriksen has served on the Brooklyn Park City Council since 2022 and has endorsements from council member Shelle Page and former member Terry Parks, according to his campaign.

“With many emotions, I am announcing my candidacy for MN House District 34B. I know in our communities, this seat will endure as ‘Melissa’s Seat,’ ” Eriksen said in a Facebook post on July 7. “It is with great respect to her legacy, as well as the legacy of all those whom have served before us, that I run for this office.”

Candidates interested in the seat must file by 5 p.m. Tuesday.

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NEW YORK (AP) — New York City’s subway system was fully operational for the Tuesday morning commute, however some roads remained closed in sections of New York and New Jersey after heavy rain swept across the U.S. Northeast overnight, causing flash floods.

Dozens of flights were delayed or canceled at area airports Tuesday, including 159 total cancelations at Newark Liberty Airport, according to FlightAware data.

Most flash flood watches and warnings had expired in parts of New Jersey, New York and Pennsylvania as the rain moved on, but a state of emergency declared by Gov. Phil Murphy remained in New Jersey, where video on social media showed cars still partially inundated in some parts of the state as residents worked to clean up.

Delays were reported on part of the state’s commuter rail line due to the severe weather.

This image made from video shows a flooded street in Rahway, N.J., on July 14, 2025.(WABC-TV via AP)

In New York, however, Janno Lieber, chair and CEO of the Metropolitan Transit Authority, told ABC 7 in New York there was now full subway service, as well as full Long Island Railroad and Metro North commuter rail service after hundreds of people worked overnight to restore operations.

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Video posted on social media appeared to show water flooding down into a Manhattan subway station, submerging the platform while passengers inside a train watch. Another photo appears to show passengers standing on a train’s seats to avoid the water beginning to soak the floor.

Lieber said the city’s sewer system got overwhelmed by the rain and backed up into the subway tunnels and to the stations. In several cases, he said, the backup “popped a manhole,” creating the dramatic “geyser” seen in some videos.

“What happened last night is something that is, you know, a reality in our system,” he told the TV station, noting the backup happens when more than 1 3/4 inches of rain falls in an hour. “We’ve been working with the city of New York to try to get them to increase the capacity of the system at these key locations.”

In one flooded neighborhood in North Plainfield, New Jersey, authorities were investigating why a house caught on fire and collapsed and whether it was due to a possible explosion. It occurred not long after the family inside had evacuated, authorities said. No injuries were reported.