Trump Tariff Block & Nvidia's Knockout Earnings Send Dow Soaring!

Dow Futures Soar as Court Blocks Trump Tariffs, Nvidia's Earnings Spark Optimism

A wave of optimism swept through the market early Thursday as stock futures surged, fueled by two significant catalysts: a federal court's decision to block President Trump's "reciprocal" tariffs and a stellar earnings report from artificial intelligence powerhouse Nvidia.

Futures tied to the S&P 500 rose 0.8%, while Nasdaq 100 futures gained 1.3%. The Dow futures experienced a notable jump, climbing 100 points, or 0.2%. This positive momentum suggests a strong opening for the market, potentially setting the stage for further gains throughout the trading day.

Court Rejects Trump's Trade Agenda

The U.S. Court of International Trade delivered a significant blow to President Trump's trade policy on Wednesday night. The court ruled that Trump had overstepped his authority when imposing "reciprocal" tariffs, effectively vacating the challenged tariff orders. This decision brings a sigh of relief to investors who have been grappling with the uncertainty surrounding the tariffs and their potential impact on the economy.

The implications of this ruling are far-reaching:

• It alleviates immediate concerns about tariff-induced inflation.
• It removes a significant source of market volatility that has plagued investors in recent weeks.
• However, it also raises questions about the future of U.S. trade negotiations and whether they will be prolonged further into the year.

Adam Crisafulli of Vital Knowledge cautioned, "The tariff drama isn't over. Trump has other legal avenues to pursue an aggressive tariff agenda, and investors expect he will utilize them." This highlights the potential for continued trade-related uncertainty despite the court's ruling.

Nvidia's Earnings Power AI Optimism

Adding to the positive sentiment, Nvidia shares jumped more than 5% in after-hours trading after the chipmaker released a blockbuster earnings report. The company exceeded expectations on both the top and bottom lines in the first quarter, driven by a remarkable 73% year-over-year growth in its data center business.

James Demmert, chief investment officer of Main Street Research, emphasized the broader significance of Nvidia's success: "Wednesday's Nvidia earnings report is pivotal not just for Nvidia but for the entire stock market. It can rejuvenate investor optimism across the board and help investors to focus on the power of AI and less on headlines out of Washington on tariffs and taxes."

Market Performance This Week and Month

Despite a lackluster session on Wednesday, major U.S. indexes are on track to close the week – and month – higher. Here's a quick recap:

• The S&P 500 is up 1.5% this week.
• The Dow is up 1.2% this week.
• The Nasdaq has rallied nearly 2% this week.
• The tech sector has surged more than 10% in May, fueled by AI announcements from Big Tech player Alphabet.

For the month, the S&P 500 has gained 5.7%, the Dow has added 3.5%, and the Nasdaq has jumped 9.5%.

Looking Ahead

The combination of a favorable court ruling on tariffs and strong earnings from Nvidia has provided a welcome boost to the market. While potential challenges remain on the trade front, the focus on innovation and technological advancements, particularly in the field of AI, is driving investor enthusiasm. It remains to be seen if the momentum can be sustained throughout the day and the coming weeks, but the initial signs are undeniably positive, suggesting a potential shift towards a more optimistic outlook.

Tags: NYSE, Stock futures, Nvidia, S&P 500, Nasdaq, Dow, Trump tariffs, Trade policy, US market, Inflation

Source: https://www.cnbc.com/2025/05/28/stock-market-today-live-updates.html