The S&P 500 ticked higher on Thursday as Nvidia shares staged a post-earnings rally. But gains were restricted as investors wondered what would come next after a federal court knocked down President Donald Trump’s “reciprocal” tariffs.
The broad index climbed 0.3% after trading as high as 0.9% up at session highs. The Nasdaq Composite advanced 0.4%, also well off its highest intraday gain of 1.5%. The Dow Jones Industrial Average sat near flat, weighed down by a slide of more than 7% in Salesforce following earnings.
The U.S. Court of International Trade ruled on Wednesday night that Trump overstepped his authority when he imposed his “reciprocal” tariffs. The court ordered that the challenged tariff orders be vacated.
Trump’s changing approach toward trade policy, as well as inflation fears fueled by the prospect of the tariffs, roiled markets last month. Some companies have also highlighted the levies and dialed back their forecasts, pointing to uncertainty around trade policy and the impact on the consumer.
For now, the judges’ decision appears to have allayed investors’ worries. However, this development can also raise concerns that U.S. trade negotiations with foreign countries could be drawn out into later in the year than previously anticipated.
“This is lowering the probability of a really bad outcome on tariffs, but the market has been doing that on its own for the last few weeks as well,” said Zachary Hill, head of portfolio management at Horizon Investments. “There wasn’t very much of that downside tail scenario where we make new lows factored into market calculus anyway. I think that’s behind some of the fade we’ve seen from the initial pop.”
Nvidia rallies after earnings
Nvidia shares jumped more than 5%. The chipmaker exceeded expectations on the top and bottom lines in the first quarter, as its data center business recorded year-over-year growth of 73%.
“Wednesday’s Nvidia earnings report is pivotal not just for Nvidia but for the entire stock market,” said James Demmert, chief investment officer of Main Street Research. “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.”
Stocks are coming off of a lackluster session Wednesday, but the major U.S. indexes are on track to close the week — and month — higher. The S&P 500 and 30-stock Dow are up 2.2% and 1.3% this week, respectively, while the Nasdaq has rallied 3%. The tech sector has surged more than 10% in May, fueled by AI announcements from Big Tech player Alphabet.
This month, the S&P 500 has gained 6%. The Dow has added 3.6%, while the Nasdaq has jumped 11%.
This advance comes after President Donald Trump on Sunday walked back his threat to implement a 50% tariff on the European Union on June 1, delaying the date to July 9. Although investors cheered the news, critiques of Trump’s tariffs have emerged given their wild effect on markets.
Court shooting down Trump’s tariffs only adds to uncertainty for markets, says Harris Financial Group
After the U.S. Court of International Trade shot down President Donald Trump’s tariffs on Wednesday night, the market now has even more uncertainty to contend with, according to Harris Financial Group managing partner Jamie Cox.
“The only thing this court ruling did was extend the uncertainty of how this ends. All of the [yet]-to-be announced trade deals likely are now on ice and, if Trump wins on appeal, he’ll hit harder and faster in round two,” Cox told CNBC.
“Given how far along things were and seemingly causing less heartburn than feared, this ruling may be effective in restraining the executive, but not accomplish much otherwise,” he added.
— Brian Evans
Stocks open higher
Stocks kicked off Thursday’s session in the green.
The S&P 500 climbed 0.8%, while the Nasdaq Composite jumped 1.5%. The Dow added 0.2%.
— Alex Harring
Stocks making the biggest moves before the bell: Nvidia, E.l.f. Beauty and more
These are the stocks moving the most in premarket trading:
Nvidia — The graphics processing unit manufacturer popped 6% after fiscal first-quarter adjusted earnings of 96 cents per share exceeded the 93 cents analysts polled by LSEG had expected.E.l.f. Beauty — The beauty stock soared 9% after fiscal fourth-quarter earnings and revenue beat analyst estimates, although the company withheld its full-year outlook due to tariff uncertainty.HP — The personal computer maker fell 10% after second-quarter earnings missed analyst expectations.Read the full list of stocks moving here.
— Lisa Kailai Han
Jobless claims rise, Q1 GDP not as bad as originally thought
Initial claims for unemployment insurance rose more than expected last week, pushed by an increase in Michigan, the Labor Department reported Thursday.
Filings totaled a seasonally adjusted 240,000 for the week ending May 24, up 14,000 from the prior period and ahead of the Dow Jones estimate for 230,000. Continuing claims, which run a week behind, also showed an increase, up 26,000 to the highest level since Nov. 13, 2021. Claims rose by 3,329 in Michigan, according to unadjusted figures.
In other economic news, the Commerce Department reported that gross domestic product contracted at a 0.2% pace in the first quarter, according to numbers adjusted for seasonality and inflation. The number was 0.1 percentage point below the initial estimate and better than the forecast for 0.4%.
Most of the decline came from a 42.6% explosion in imports, due to companies trying to get ahead of President Donald Trump’s tariffs. However, consumer spending rose a revised 1.2%, compared to the initial estimate of 1.8% and the slowest gain since Q2 of 2023. An upward revision in the gross private domestic investment gain to 24.4% helped offset the consumer slowdown.
—Jeff Cox
Best Buy cuts guidance, citing negative impact from tariffs
Cheng Xin | Getty ImagesShares of Best Buy dipped more than 1% after the electronics retailer lowered its full-year guidance, citing the impact of tariffs.
Best Buy now projects comparable sales growth of -1% to 1% for its 2026 fiscal year, down from a range of 0% to 2%. On the revenue side, Best Buy trimmed its guidance range to $41.1 billion to $41.9 billion from $41.4 billion from $42.2 billion.
And for adjusted earnings per share, Best Buy cut its projection to $6.15 to $6.30, down from $6.20 to $6.60.
“Today we are updating our full year guidance to incorporate the impact of tariffs. … Our underlying working assumptions are that tariffs stay at the current levels for the rest of the year, and there is no material change in consumer behavior from the trends we have seen in recent quarters. As you can imagine, and based on our history, we will continue to scenario-plan and adjust with agility as the situation evolves,” Matt Bilunas, Best Buy CFO, said in a press release.
The company’s first quarter results were mixed. Best Buy reported $1.15 in adjusted earnings per share on $8.77 billion of revenue. Analysts surveyed by LSEG were looking for $1.09 per share and $8.81 billion.
— Jesse Pound
Nvidia rallies on earnings beat
Brittany Hosea-small | ReutersNvidia CEO Jensen Huang delivers the keynote for the Nvidia GPU Technology Conference (GTC) at the SAP Center in San Jose, California, U.S. March 18, 2025.Nvidia shares jumped in extended trading as investors cheered the megacap technology giant and artificial intelligence darling’s better-than-expected earnings report.
The chip company earned an adjusted 96 cents per share on $44.06 billion in revenue for the first quarter. Analysts polled by LSEG anticipated 93 cents and $43.31 billion, respectively.
— Alex Harring, Kif Leswing
Tesla shares rise 3% in premarket trade as Musk exits Trump administration role
Kevin Lamarque | ReutersU.S. President Donald Trump and Tesla CEO Elon Musk shake hands in front of a Tesla Cybertruck, at the White House in Washington, D.C., U.S., March 11, 2025.Tesla shares were 2.8% higher in premarket deals at 4:50 a.m. ET, after CEO Elon Musk confirmed he was leaving his role in the U.S. government this week, in-line with limits on so-called special government employees.
Tesla investors have expressed concerns that Musk is not focused enough on challenges at the electric vehicle maker, including a falling share price, fast-growing market competition and plunging European sales.
— Jenni Reid
Asia-Pacific markets rise after U.S. trade court blocks Trump ‘reciprocal’ tariffs
Asia-Pacific markets mostly rose Thursday after a U.S. federal trade court ruled that President Donald Trump exceeded his authority with his “reciprocal” tariffs, dealing a blow to a major tenet of the president’s economic agenda.
South Korea’s Kospi rose 1.89% to end the day at 2,720.64 while the small-cap Kosdaq climbed 1.03% to 736.29. The Bank of Korea cut its policy rate from 2.75% to 2.5% Thursday, its lowest level since August 2022, in line with expectations among economists polled by Reuters.
Japan’s benchmark Nikkei 225 rose 1.88% to end the day at 38,432.98, and the Topix climbed 1.53% to 2,812.02.
Australia’s S&P/ASX 200 edged up 0.15% to close at 8,409.8.
Hong Kong’s Hang Seng index advanced 1.35% to end the day at 23,573.38 while mainland China’s CSI 300 moved 0.59% higher to 3,858.70.
India’s benchmark Nifty 50 and BSE Sensex were flat as at 1.45 p.m. Indian Standard Time.
Investors will be keeping an eye out for Asian chip stocks after artificial intelligence heavyweight Nvidia posted stronger-than-expected earnings and revenue Wednesday, driven by a 73% year-over-year surge in its data center business.
— Amala Balakrishner, Lee Ying Shan
Stock futures rise as court blocks Trump’s ‘reciprocal’ tariffs
Carlos Barria | ReutersU.S. President Donald Trump holds a document as he delivers remarks on tariffs in the Rose Garden at the White House in Washington, D.C., on April 2, 2025.Stock futures surged after the U.S. Court of International Trade ruled that President Donald Trump overstepped his authority when he issued his “reciprocal” tariffs.
Dow futures were last up more than 400 points, while S&P 500 futures jumped 1.4%. Nasdaq 100 futures added 1.7%.
“The Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by [the International Emergency Economic Powers Act] to regulate importation by means of tariffs,” the judges wrote in their decision on Wednesday.
The judges said that the challenged tariff orders “will be vacated and their operation permanently enjoined.”
White House spokesperson Kush Desai pushed back on the ruling, noting that trade deficits “have created a national emergency that has decimated American communities.”
“It is not for unelected judges to decide how to properly address a national emergency,” Desai added.
Read more about the decision from CNBC’s Lora Kolodny and Erin Doherty here.
– Darla Mercado
Trump likely to find a way around court ban on reciprocal tariffs, says Goldman Sachs
Leah Millis | ReutersU.S. President Donald Trump takes questions from the press during a swearing-in ceremony for the interim U.S. Attorney for the District of Columbia, Jeanine Pirro, at the White House in Washington, D.C., U.S., May 28, 2025.The White House is likely to find a way around a U.S. court ruling that struck down steep reciprocal tariffs imposed by President Donald Trump in April, according to Goldman Sachs.
Read more about the Court of International Trade’s (CIT) ruling here.
The Wall Street bank said the Trump administration is likely to appeal the decision, but would also seek to use executive power under Section 301 of the Trade Act of 1974 to reimpose tariffs. This was the basis of Trump’s tariffs on China during his first term.
“As the administration can impose an across-the-board tariff and country-specific tariffs under other legal authorities (e.g., Sec. 122 and Sec. 301) this ruling represents a setback for the administration’s tariff plans and increases uncertainty but might not change the final outcome for most major US trading partners,” said Goldman’s chief economist Jan Hatzius in a note to clients.
“As it seems unlikely that the administration could win an appeal in the 10 days it has under the CIT order to remove the tariffs, we would expect the White House to announce a similar across-the-board tariff using Sec. 122,” Hatzius added.
Section 122 of the same Act allows the White House to impose import tariffs of up to 15% for up to 150 days on nations that have “large and serious” trade surpluses with the U.S.
Goldman’s economist also suggested that while the White House is likely to find ways to reimpose tariffs, it’s unlikely to be able to do it for all the nations targeted in the so-called “Liberation Day” announcement.
“This would then provide the administration time to launch a series of Sec. 301 cases against larger trading partners, potentially opening the door to imposing tariffs higher than 10% in some cases. However, it seems unlikely that the administration could complete Sec. 301 investigations on every US trading partner within the next several months,” Hatzius added.
— Ganesh Rao
Dollar strengthens as Trump’s tariffs blocked
The U.S. dollar index — which measures the greenback against a basket of major rivals — is up 0.2% after U.S. judges threw cold water on President Donald Trump’s tariffs plans.
The euro was 0.2% lower against the dollar by 8:11 a.m. in London, while the British pound was 0.1% lower versus the greenback. The Swiss franc, often considered a safe haven in times of market turmoil, was 0.3% lower against the U.S. currency.
The U.S. dollar has shed almost 8% so far this year, as U.S. trade policy rocked markets and sparked a so-called “Sell America” trade.
— Chloe Taylor
Nvidia’s next key breakout level is $140 per share, says chief technical strategist
Larry Tentarelli, chief technical strategist and founder of the Blue Chip Daily Trend Report, sees substantial gains ahead for Nvidia this year.
Nvidia shares jumped nearly 5% in after-hours trading Wednesday after the chipmaker beat first-quarter earnings and revenue expectations, as its data center business saw booming growth even as China restrictions weighed on sales. The stock is up 23.8% this month, and is just 0.4% higher year to date. Shares last closed at $134.81.
“From a technical perspective, 140 is a key breakout level that we would like to see the stock close above in the next 2 days,” Tentarelli said. “The stock is in an uptrend over rising 20, 50 and 200-day moving averages. This indicates an uptrend on multiple time frames. After a 43.4% correction earlier in 2025, the stock has reclaimed the daily moving averages and also a 50% retracement level of $119.86. We are bullish on Nvidia here.”
Tentarelli’s year-end price target of $165 per share suggests 22.4% potential upside.
— Pia Singh
Several stocks are moving in after-hours trading Wednesday, including Nvidia
Mike Blake | ReutersFounder and CEO at Nvidia Jensen Huang is interviewed by Chairman of the Milken Institute Michael Milken during the Milken Institute Global Conference 2025 in Beverly Hills, California, U.S., May 6, 2025.Check out the companies making headlines after market close:
Nvidia — The artificial intelligence chipmaker’s shares jumped 5% after Nvidia reported better-than-expected quarterly results, as its data center business recorded year-over-year growth of 73%. Nvidia reported first-quarter adjusted earnings per share of 96 cents on revenue of $44.06 billion, higher than analysts’ estimates for earnings of 93 cents a share on revenue of $43.31 billion, according to LSEG.C3.ai — The enterprise artificial intelligence software company saw its shares pop 14% on the back of a strong quarterly financial report. For its fiscal fourth quarter, C3.ai reported a loss of 16 cents per share, while analysts surveyed by LSEG forecasted a loss of 20 cents per share. C3.ai’s revenue of $109 million for the period exceeded the consensus estimate of $108 million, per LSEG.Salesforce — Shares of the sales and customer service software maker rose about 1% after the company posted better-than-expected fiscal first-quarter results and lifted its full-year forecast. Salesforce reported earnings of $2.58 per share, excluding items, while analysts polled by LSEG expected $2.54 per share. The company’s revenue of $9.83 billion beat analysts’ consensus call for $9.75 billion.For the full list, read here.
— Pia Singh
S&P 500, Nasdaq futures open higher
S&P 500 futures opened higher Wednesday night.
S&P 500 futures and Nasdaq 100 futures climbed 0.3% and 0.6%, respectively. Dow futures hovered below the flatline, down 15 points, meanwhile.
— Pia Singh
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