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US stocks rose on Thursday as markets assessed Nvidia's (NVDA) earnings report as well as a US trade court ruling that blocked President Trump's global tariffs.
The S&P 500 (^GSPC) gained about 0.9%. The Dow Jones Industrial Average (^DJI) moved up roughly 0.3%, while the Nasdaq Composite (^IXIC) climbed 1.4%.
Nvidia shares rallied more than 5% after its first-quarter revenue topped estimates. Investors appear to be looking past the AI chipmaker's warning that it expects to miss out on $8 billion in sales in the second quarter thanks to US restrictions on exports to China.
Overall, Nvidia's performance on Wednesday boosted hopes on Wall Street that Big Tech can weather Trump's far-reaching trade policy.
Read more: The latest on Trump's tariffs
On Wednesday evening, a panel of judges at the US Court of International Trade took aim at Trump's trade agenda, blocking global tariffs imposed citing emergency powers on the grounds that they are illegal. The decision can be appealed by the Trump administration in federal court.
On the earnings front, Best Buy (BBY) cut its full-year guidance amid US tariff hikes, sending its stock lower. Eyes are now on Costco's (COST) after-hours report, given the difficult position retailers find themselves in: Trump told Walmart to "eat" price hikes associated with new duties following its latest results.
On the economic front, filings for unemployment insurance jumped more than expected last week. And in a slight upgrade from the initial reading, the Commerce Department said GDP shrank at a 0.2% annualized pace in the first quarter.
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Dow, S&P 500, Nasdaq climb as Nvidia rallies 5%, court blocks Trump's tariff policy
Stocks rose on Thursday in the wake of an AI chip giant, Nvidia's (NVDA) earnings report, and a court ruling that threatened President Trump's tariff policy.
The S&P 500 (^GSPC) rose about 0.8%. The Dow Jones Industrial Average (^DJI) moved up roughly 0.3%, while the Nasdaq Composite (^IXIC) climbed 1.4%.
Tech stock led the gains, with Nvidia jumping more than 5% following its quarterly report, which topped estimates but warned of a second quarter revenue impact due to US restrictions on exports to China.
Other 'Mag 7' stocks also rose, including Amazon (AMZN) and EV maker Tesla (TSLA), after CEO Elon Musk teased the rollout of its robotaxis and confirmed he was leaving his role in government.
On Wednesday evening, a panel of judges at the US Court of International Trade blocked Trump's global tariffs, citing emergency powers on the grounds that they are illegal. The decision can be appealed by the Trump administration in federal court.
Weekly jobless claims hit highest level since late April
Weekly filings for unemployment benefits moved higher last week while the number of Americans filing for unemployment insurance on an ongoing basis once again hit their highest level since November 2021 as the US labor market continues to show signs of slowing.
Data from the Department of Labor released Thursday morning showed 240,000 initial jobless claims were filed in the week ending May 24, up from 226,000 the week prior and above economists' expectations for 230,000.
Meanwhile, 1.919 million continuing claims were filed, up from 1.893 million the week prior and the highest level seen since November 2021. Economists see an increase in continuing claims as a sign that those out of work are taking longer to find new jobs.
Tesla stock rises as Elon Musk says driverless cars arriving 'a month ahead of schedule'
Tesla (TSLA) stock rose 2% in premarket trading after CEO Elon Musk teased the rollout of its robotaxis and confirmed he was leaving his role in government.
Musk said the EV maker has been testing driverless Model Y cars in Austin, Texas, for the past several days. Previously, he said Tesla would begin testing by the end of June, per Reuters. The rollout is also expected to feature 10 to 20 cars to start, based on past comments.
"A month ahead of schedule," Musk wrote on X.
Also lifting shares was a confirmation from a White House official that Musk will no longer serve on the Department of Government Efficiency (DOGE). Musk's involvement in government was controversial for Tesla shareholders, many of whom felt his attention had become too divided.
โBack to spending 24/7 at work and sleeping in conference/server/factory rooms,โ Musk said on Tuesday, adding that he โmust be super focused on ๐/xAI and Tesla (plus Starship launch next week), as we have critical technologies rolling out.โ
Read more here about Tesla's driverless cars and Musk's return to the office.
Goldman: Trump can offset tariff ruling with other tools
Salesforce earnings surprise, but bears on the stock still lurk
Salesforce (CRM) defied conventional thinking by raising its full-year guidance in the face of tariff headwinds late Wednesday, as it posted first quarter profit and revenue beats.
But the software giant's stock is trading pretty much flat in Thursday's pre-market โ a sign that analysts aren't that jazzed by its results.
Yahoo Finance's Brian Sozzi reports on how Wall Street is reacting:
Buying the stock market dip hasn't paid off this much in 30 years
As a US trade court ruling upends President Trump's trade strategy, Yahoo Finance's Josh Schafer points out the rewards that awaited investors who snapped up tariff-bruised stocks.
Good morning. Here's what's happening today.
Economic data: First quarter GDP; First quarter personal consumption; Initial jobless claims, (week ended May 24); Pending home sales (April)
Earnings: American Eagle (AEO), Best Buy (BBY), Burlington Stores (BURL), Build-a-Bear Workshop (BBW), Costco (COST), Dell (DELL), Foot Locker (FL), Hormel Foods (HRL), Gap (GAP), Marvell Technology (MRVL), Ulta (ULTA), Zscaler (ZS)
The United States Court of International Trade has ruled Trump tariffs "unlawful." Meanwhile, Nvidia earnings lifted Wall Street, even as the chipmaker flagged risks relating to AI chip controls.
Here are some of the biggest stories you may have missed overnight and early this morning:
Trump's tariffs in limbo after trade court's stunning rebuke
Nvidia pops, CEO warns US chip curbs boost China rivals
Court rules Trump doesn't have authority to impose tariffs
Buying the dip hasn't paid off this much in 30 years
Nvidia gets a pass after earnings miss: What Wall Street is saying
Real winner in GameStop's bitcoin pivot is Strategy
Goldman: Trump can offset tariff ruling with other tools
Microsoft shares go from laggard to leader as AI growth improves
Nvidia's earnings miss is getting a pass from Wall Street. Here's why.
Yahoo Finance's Brian Sozzi reports:
Read more here on what Wall Street is saying about Nvidia's quarter.
HP plunges after cutting profit outlook on tariffs, economy
Shares in HP Inc. (HPQ) fell by 8% on Thursday in premarket trading after the company's profit outlook missed estimates and it cut the annual earnings forecast, citing a weaker economy and continuing costs from US tariffs on goods from China.
Bloomberg News reports:
US court's tariff ruling gives markets short-term pop, long-term angst
Markets may be celebrating the latest turn in the tariffs saga, but the US trade court's block isn't definitive โ and that means there's still cause for concern, some analysts say.
Reuters reports:
Oil prices jump as Trump tariffs blocked in court
A landmark decision by the US Court of International Trade has deemed many of President Trump's tariffs 'unlawful' and sent markets into a global upturn.
Reuters reports:
