Tariff ruling and Nvidia surge power market gains, Nasdaq leads

Wall Street

US stocks advanced on Thursday as markets digested a pivotal court ruling that blocked former President Donald Trump’s “reciprocal” tariffs and celebrated a strong earnings report from Nvidia, helping investors look past recent trade policy jitters.

At opening, the S&P 500 rose 0.5%, the Nasdaq Composite gained 0.9%, and the Dow Jones Industrial Average added 78 points (0.2%), though gains in the Dow were capped by a more than 5% drop in Salesforce shares post-earnings.

The rally was underpinned by a decision from the US Court of International Trade, which ruled that Trump had overstepped his authority in imposing the tariffs. The court vacated the contested orders, bringing relief to markets that had been rattled by the policy’s inflationary overhang and global trade uncertainty.

“It's becoming clear that the administration’s rhetoric on tariffs is tougher than its actual policies,” said Paul Stanley of Granite Bay Wealth Management, adding that the judicial rebuke was enough to “push stocks higher.”

Nvidia, meanwhile, jumped more than 5% after a robust earnings beat, led by a 73% year-over-year surge in its data center segment. The results are being seen as a barometer for broader tech resilience and AI-driven optimism.

“Wednesday’s Nvidia earnings report is pivotal not just for Nvidia but for the entire stock market,” said James Demmert of Main Street Research. “It can rejuvenate investor optimism and help shift focus from the tariff headlines back to AI fundamentals.”

Despite a muted performance on Wednesday, all three major indices are poised to end both the week and the month higher. The Nasdaq is up 3% this week and 11% in May, riding a tech surge powered by AI announcements, including those from Alphabet. The S&P 500 has gained 6% this month, and the Dow is up 3.6%.

Investors also took comfort in Trump’s weekend move to delay a 50% tariff on the European Union, originally slated for June 1, to July 9. But the unpredictable nature of trade policy remains a wildcard heading into the summer.