New York, NY – U.S. stock markets exhibited a mixed performance on Thursday, as investors navigated a complex landscape marked by judicial challenges to President Trump’s tariff policies and a blockbuster earnings report from chipmaker Nvidia.
The S&P 500 managed a modest gain of 0.2%, recovering from earlier session highs that saw the index climb as much as 0.9%. Similarly, the tech-heavy Nasdaq Composite edged up 0.3%, significantly paring back its intraday peak of 1.5%. In contrast, the Dow Jones Industrial Average slipped by 33 points (0.1%), primarily weighed down by a 5% plunge in Salesforce shares following its earnings announcement.
Tariff Tensions Resurface
A significant driver of market sentiment was the latest development in the ongoing trade saga. The U.S. Court of International Trade delivered a ruling on Wednesday night stating that President Trump had exceeded his authority in imposing certain “reciprocal” tariffs, and ordered these measures to be vacated.
However, the uncertainty was far from resolved. The Trump administration quickly filed a notice of appeal and indicated it might seek a stay from the Supreme Court as early as Friday. This legal wrangling brings back to the forefront concerns about inflation and trade disruptions that previously unsettled markets.
“In general, markets don’t like uncertainty, because it makes forecasting more difficult,” commented Larry Tentarelli, founder of the Blue Chip Daily Trend Report. “We expect the tariff news cycle to be an extended process, which can lead to higher short-term volatility.” Indeed, several companies have previously cited tariff impacts when adjusting their financial outlooks.
Nvidia Shines Amidst the Gloom
Providing a powerful counter-narrative, Nvidia (NVDA) shares surged over 3%, injecting upward momentum into the tech sector. The semiconductor giant surpassed Wall Street expectations for its first-quarter earnings, showcasing an impressive 73% year-over-year growth in its data center division – a testament to the booming demand for Artificial Intelligence (AI) capabilities.
James Demmert, chief investment officer of Main Street Research, highlighted the positive spillover: “Nvidia’s strong report 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.”
Weekly and Monthly Outlook Remains Positive
Despite Thursday’s wavering performance, the major U.S. indexes are on track to conclude both the week and the month on a high note. For the week, the S&P 500 and Dow are tracking gains of approximately 1.7% and 1.2% respectively, while the Nasdaq has rallied more than 2%.
Looking at the monthly picture, the S&P 500 is up around 6%, the Dow has added 3.5%, and the Nasdaq has led the charge with a significant jump of nearly 10%. This underlying strength suggests that despite geopolitical and trade-related headwinds, robust corporate earnings, particularly in technology, continue to support market valuations.
