Market Indexes Rally on Positive News
US stock market futures are surging this Thursday, May 29, 2025, following two significant developments that have boosted investor sentiment. The S&P 500 futures are up 1.5%, Dow Jones Industrial Average futures have risen 1.1%, and Nasdaq 100 futures are leading the charge with a 1.9% gain.
The rally comes after a US trade court blocked some of President Donald Trump’s import tariffs, ruling them illegal. This decision, which can still be appealed by the Trump administration in federal court, has eased concerns about the potential economic impact of the president’s trade policies.
Additionally, tech giant Nvidia (NVDA) reported impressive quarterly results yesterday evening, with CEO Jensen Huang predicting “exponential growth” for the AI computing market despite challenges related to export restrictions to China.
Major Stocks Making Moves
Nvidia shares have jumped 6% in early trading following its blockbuster earnings report. The company’s fiscal first-quarter revenue surged 69% year-over-year to $44.06 billion, though the chipmaker warned it expects to miss out on $8 billion in sales in the next quarter due to US government restrictions on selling its H20 chips to China.
Other tech giants are also benefiting from the positive sentiment. Broadcom (AVGO) is up nearly 3% in premarket trading, while Apple (AAPL), Amazon (AMZN), and Tesla (TSLA) are each gaining about 2%. Microsoft (MSFT), which has seen a 16% advance in May putting it within 2% of its all-time high, continues to benefit from strong performance in its Azure cloud-computing business and limited exposure to Trump’s tariffs.
In the retail sector, Best Buy (BBY) shares are down 3% after the electronics retailer cut its outlook due to the expected impact of tariffs. Meanwhile, Kohl’s (KSS) shares have risen more than 2% following better-than-expected quarterly results.
Upcoming Earnings and Economic Data
Several companies are reporting earnings today, with investors closely watching for results from Best Buy (BBY) and Costco (COST). The retail sector has been particularly vulnerable to tariff concerns, with President Trump recently telling Walmart to “eat” price hikes associated with new duties.
Other notable companies reporting earnings today include Royal Bank of Canada (RY), Canadian Imperial Bank of Commerce (CM), Hormel Foods (HRL), Bath & Body Works (BBWI), Foot Locker (FL), and BRP Inc. (DOOO).
On the economic front, today will bring the release of weekly jobless claims and a revision of first-quarter US gross domestic product (GDP). The initial GDP release showed economic growth contracted for the first time in three years at the start of 2025, making today’s revision particularly significant for market sentiment.
Trade Policy Developments
The court ruling against Trump’s tariffs represents a significant development for markets that have been roiled by trade policy uncertainty in recent months. The panel of judges at the US Court of International Trade took aim at Trump’s trade agenda, blocking global tariffs imposed under emergency powers on the grounds that they are illegal.
This decision comes as the Trump administration is also reportedly moving to restrict the sale of chip design software to China, affecting companies like Cadence Design Systems, Synopsys, and Germany’s Siemens AG. The Commerce Department’s Bureau of Industry and Security has reportedly sent letters to some leading providers of electronic design automation telling them to halt shipments to Chinese customers.
Market Outlook
The yield on the 10-year Treasury note, which affects borrowing costs on all sorts of consumer and corporate loans, is holding steady this morning at 4.48%. The yield moved as high as 4.63% last week, its highest level in months.
In the cryptocurrency market, Bitcoin is trading at $108,600, up from an overnight low of $106,800. The digital currency hit an all-time high of $112,000 last week.
As markets digest these developments, investors will be watching closely for any signs of how the Trump administration responds to the court ruling on tariffs, as well as for indications of the Federal Reserve’s future interest rate path following the recent FOMC meeting minutes.