Nvidia lifts Wall Street even as Trump’s Tariff plans keep investors on edge

Nvidia lifts US markets following robust Q4

US stocks climbed on Thursday, buoyed by Nvidia’s stellar earnings, even as fresh tariff threats from former U.S. President Donald Trump and weak economic data kept sentiment in check.

The S&P 500 rose 0.5 percent, while the Nasdaq Composite advanced 0.7 percent. The Dow Jones Industrial Average added 137 points, or 0.3 percent.

Nvidia jumped 1 percent after the chipmaker exceeded Wall Street’s fourth-quarter estimates and provided strong guidance, reinforcing confidence in the artificial intelligence boom. The company’s 78 percent year-on-year revenue growth reassured investors despite concerns about intensifying competition. Tech stocks broadly followed Nvidia’s lead, with Broadcom climbing 2.5 percent and Tesla gaining 1.2 percent.

Also read: A first in 29 years! Nifty sees fifth straight monthly decline as valuation worries persist

EBay shares were also making headlines, cracking 8 percent after the company’s first-quarter revenue outlook fell short of expectations. The e-commerce giant projected revenue between $2.52 billion and $2.56 billion, missing analysts' forecast of $2.59 billion, according to LSEG. However, eBay did surpass estimates with its fourth-quarter results.

However, political and economic concerns tempered the rally. In a post on Truth Social, Trump reaffirmed that a 25 percent tariff on Mexico and Canada will take effect on March 4, citing insufficient action to curb drug trafficking. He also proposed doubling tariffs on Chinese goods to 20 percent.

Meanwhile, a jump in jobless claims added to fears of economic slowdown. Weekly claims rose to 242,000, surpassing the Dow Jones estimate of 225,000. This follows a string of disappointing data, including weaker retail sales and falling consumer confidence.

Read more: Shankar Sharma on what’s next for Indian and US markets

All eyes will be on Friday’s release of the personal consumption expenditures price index, the Federal Reserve’s preferred inflation gauge, for further clues on economic health. With February nearing its end, all three major indexes remain on track for a losing month. The S&P 500 is down 1.4 percent, while the Dow and Nasdaq have each fallen more than 2 percent.

Asian-Pacific markets mixed

Asia-Pacific markets saw a mixed session on Thursday, as investors weighed Wall Street’s gains against fresh tariff threats from former U.S. President Donald Trump. Australia’s S&P/ASX 200 edged up 0.33 percent to close at 8,268.2, while Japan’s Nikkei 225 added 0.3 percent, finishing at 38,256.17, while the broader Topix advanced 0.73 percent to 2,736.25. Meanwhile, South Korea’s Kospi slipped 0.73 percent to 2,621.75, and the small-cap Kosdaq dipped 0.07 percent to 770.85.

Indian markets' historical slump

The Indian stock market is staring at a historic slump -- Nifty50 has declined for five straight monthly F&O expiry cycles, marking its worst monthly losing streak in 29 years.

The sell-off has been relentless, fueled by weak corporate earnings, persistent foreign outflows, and mounting economic uncertainty. Investors who cheered record highs just four months ago are now grappling with losses, as the Nifty50 and Sensex have slumped around 4 percent in February alone, extending their declines to 14 percent and 13.2 percent, respectively, from their peaks on September 27, 2024.