The U.S. stock market closed in positive territory on Thursday, buoyed by strong earnings from technology giant Nvidia. The S&P 500 rose by 0.4%, reflecting growing investor confidence, despite ongoing concerns about President Donald Trump’s evolving tariff policies.
The tech-heavy Nasdaq Composite also advanced by 0.39%, while the prestigious Dow Jones Industrial Average gained 127 points, or 0.3%, even amidst a notable 3.4% drop in Salesforce due to disappointing earnings. Earlier in the trading day, all major indexes had soared significantly before pulling back in response to complex trade developments.
Adding to this market drama, a federal appeals court re-established Trump’s tariffs on the European Union only hours after the U.S. Court of International Trade declared them unlawful. The Biden administration is projected to seek a pause on this ruling from the Supreme Court as soon as Friday, amplifying concerns among investors regarding his unpredictable trade stance, particularly the new “reciprocal tariff” policy.
This inconsistency poses threats to inflation and market stability, with several companies, including Best Buy, indicating that these tariffs contribute to their muted earnings forecasts. As the market digests these developments, many investors are left on edge, closely monitoring further announcements from the White House.
Nevertheless, Nvidia’s impressive performance helped anchor the markets. Shares in Nvidia surged nearly 3% after reporting a staggering 73% year-over-year growth in its data center business, surpassing analysts’ expectations for both revenue and earnings. Although they warned of a prospective $8 billion hit in the upcoming quarter due to U.S. export restrictions to China, market sentiment remained buoyant, driven by robust momentum in artificial intelligence.
Despite the headwinds posed by trade-policy uncertainties, all major stock indexes are poised to end the week and the month on a positive note. The S&P 500 has seen an impressive 6% growth in May, the Dow 3.5%, and the Nasdaq nearly 10%. As attention shifts towards Costco’s upcoming earnings report and White House activity on tariffs, investors remain cautiously optimistic.
