US Stocks Rise Next to Nvidia's Earnings
The ruling is seen as a victory for Trump, who has made tariffs a central part of his trade agenda. However, the decision's impact on the market and trade negotiations remains to be seen, as the case continues to unfold. The outcome of the next hearing and potential Supreme Court review will be closely watched by investors and trade experts.
US stocks rose on Thursday, with the S&P 500 gaining about 0.8% and the Dow Jones Industrial Average moving up roughly 0.3%, as investors cheered Nvidia's earnings and weighed tariff uncertainty. Nvidia's stock rallied over 3% after its earnings report, which topped estimates but warned of a second-quarter revenue impact due to US restrictions on exports to China.
A federal appeals court temporarily reinstated President Trump's global tariffs, which had been blocked by a lower court. The ruling, issued by the US Court of International Trade, had found that Trump overstepped his authority by imposing the duties without congressional approval. The appeals court granted a White House request to suspend the lower court's order, allowing Trump to continue collecting import taxes while the case is litigated.
The US labor market showed signs of slowing, with weekly filings for unemployment benefits moving higher and continuing claims hitting their highest level since November 2021. Crude oil prices retreated amid oversupply worries, with West Texas Intermediate futures falling 1% to hover above $61 per barrel. The Organization of the Petroleum Exporting Countries and its allies will decide this weekend whether to raise output in July.
Nvidia's earnings report lifted Wall Street, despite the chipmaker flagging risks relating to AI chip controls. Other tech stocks, including Amazon and Tesla, also rose, with Tesla's stock up 2% after CEO Elon Musk teased a June rollout of the company's robotaxis. The next hearing on the tariff ruling is scheduled for June 5, and the decision may ultimately end up at the Supreme Court.
Business owners and experts are cautiously optimistic about the ruling, but some say it has weakened Trump's ability to use tariffs as leverage in trade negotiations. The US court's tariff ruling gave markets a short-term pop, but long-term angst remains, with some analysts saying the decision isn't definitive and that there's still cause for concern.