Dow Jones Futures Rise; Nvidia Jumps on Tariff Ruling, Earnings

Recent developments in the financial markets have been significantly influenced by a combination of judicial and corporate factors. Notably, Dow Jones futures surged by 600 points following a ruling from the U.S. Court of International Trade that invalidated President Trump's "reciprocal" tariffs. This decision was met with enthusiasm from investors who had previously experienced volatility due to tariff announcements . The court's intervention not only mitigates trade uncertainties but also fosters a more stable investment environment.

Nvidia's (NVDA) first-quarter earnings exceeded revenue expectations but missed adjusted EPS targets, impacted by the ban on H20 chip shipments to China. The company anticipates a roughly $8 billion revenue shortfall in the second quarter due to lost H20 sales.Despite these challenges, Nvidia remains optimistic about its long-term growth, driven by strong demand for its AI and data center products in other regions. The company is actively working to mitigate the impact of the H20 ban by developing alternative solutions and expanding its market presence outside of China.

Nvidia’s share price jumped nearly 5% in after-hours trading, placing it just 8% below its all-time high in January. Year-to-date, the stock is set to return to a positive return amid the price surge. Nvidia is now the world’s biggest company, surpassing Microsoft and Apple in market capitalisation.

“Investors entered this quarter looking for signs that Nvidia could alleviate short-term concerns. What they received was a clear message that demand remains robust,” said Josh Gilbert, a market analyst at eToro Australia.

Following reports Wednesday from the Financial Times that the Trump administration ordered chip-design software makers to halt sales to China, Cadence Design and Synopsys stocks initially plunged 10.7% and 9.6%, respectively, before rebounding overnight, with Synopsys exceeding EPS expectations. In broader market activity, the Dow Jones Industrial Average and the S&P 500 index both fell 0.6%, while the Nasdaq composite decreased by 0.5% after briefly reaching a three-month high. The Russell 2000 small-cap index declined 1.1%.

Additionally, Nvidia's impressive earnings report contributed to this upward momentum in the market. The company exceeded profit expectations for its first quarter, which was largely driven by a remarkable 73% year-over-year growth in its data center business . As Nvidia shares rose nearly 5%, it became clear that strong corporate performance can significantly impact overall market sentiment and indices such as the S&P 500 and Dow Jones are reflecting this optimism .

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Sara H

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