I’ll use my best judgment to complete the article based on the information gathered so far.
Major Indexes Rally on Tariff Ruling and Strong Tech Earnings
The U.S. stock market is trading higher on Thursday, May 29, 2025, as investors react positively to a federal court ruling blocking President Trump’s tariff policy and impressive earnings from AI chip giant Nvidia. As of midday, the S&P 500 is up 0.41% to 5,912.88, the Dow Jones Industrial Average has edged up 0.07% to 42,128.86, and the Nasdaq Composite is leading gains with a 0.64% rise to 19,223.91.
The market’s upward momentum follows Wednesday’s lackluster session, but the major indexes remain on track to close both the week and month higher. For May, the S&P 500 has gained approximately 6%, while the Dow has added 3.5% and the tech-heavy Nasdaq has jumped nearly 10%.
Court Ruling on Trump Tariffs Boosts Market Sentiment
A significant catalyst for today’s market gains came late Wednesday when the U.S. Court of International Trade ruled that President Trump exceeded his authority with his “reciprocal” tariffs. The court ordered that the challenged tariff orders be vacated, dealing a blow to a major tenet of the president’s economic agenda.
However, market volatility remains a concern as the Trump administration quickly filed a notice of appeal following the judgment. The administration has indicated it may ask the Supreme Court as early as Friday to pause the federal court’s ruling.
“In general, markets don’t like uncertainty, because it makes forecasting more difficult,” said Larry Tentarelli, founder of the Blue Chip Daily Trend Report. “We expect the tariff news cycle to be an extended process, which can lead to higher short-term volatility.”
Nvidia Leads Tech Rally After Stellar Earnings
Nvidia (NVDA) shares jumped more than 4% today, building on after-hours gains following the company’s impressive quarterly results. The AI chip giant reported first-quarter adjusted earnings per share of 96 cents on revenue of $44.06 billion, exceeding analysts’ expectations of 93 cents per share on revenue of $43.31 billion.
The company’s data center business, which is critical to its AI computing dominance, recorded year-over-year growth of 73%. However, Nvidia did warn of a potential second-quarter revenue impact due to U.S. restrictions on exports to China.
“Nvidia’s strong report can rejuvenate investor optimism across the board and help investors to focus on the power of AI and less on headlines out of Washington on tariffs and taxes,” said James Demmert, chief investment officer of Main Street Research.
Other Notable Stock Movers
Several other stocks are making significant moves today:
– C3.ai (AI) has surged over 26% after reporting better-than-expected quarterly results. The enterprise AI software company posted a smaller-than-anticipated loss of 16 cents per share versus the expected 20 cents.
– e.l.f. Beauty (ELF) shares have soared more than 23% after the company beat fiscal fourth-quarter earnings and revenue estimates, although it withheld its full-year outlook due to tariff uncertainty.
– Tesla (TSLA) is up 1.6% after CEO Elon Musk teased a June rollout of the EV maker’s robotaxis and confirmed he was leaving his role in the Trump administration.
– Salesforce (CRM) is down 5.38% despite posting better-than-expected fiscal first-quarter results and raising its full-year forecast.
– HP Inc. (HPQ) has fallen more than 8% after second-quarter earnings missed analyst expectations.
Federal Reserve Developments and Upcoming Events
In a significant development today, Federal Reserve Chair Jerome Powell met with the President at the White House to discuss economic developments including growth, employment, and inflation. According to a statement released by the Fed, Chair Powell emphasized that monetary policy decisions will “depend entirely on incoming economic information and what that means for the outlook.”
Investors are also monitoring upcoming Fed events, including a speech by Governor Adriana D. Kugler scheduled for later today at the 5th Annual Federal Reserve Board Macro-Finance Workshop.
The next Federal Open Market Committee (FOMC) meeting is scheduled for June 17-18, which will be accompanied by a Summary of Economic Projections that could provide further insights into the Fed’s outlook on inflation, growth, and potential interest rate adjustments.
Market Outlook
As we move into the final month of the second quarter, investors remain focused on the ongoing tariff situation, upcoming economic data releases, and the Federal Reserve’s approach to monetary policy.
The VIX, often referred to as the market’s “fear gauge,” is currently at 19.24, down 0.36% for the day, suggesting moderate market anxiety but not signaling any immediate concerns.
With the major indexes on track for solid monthly gains, market participants will be watching closely to see if this momentum can continue into June, particularly as more clarity emerges around trade policy and as companies begin to provide guidance for the upcoming earnings season.
For investors navigating today’s midday market, the combination of positive tech earnings and the temporary relief on tariff concerns appears to be outweighing ongoing uncertainties about inflation and economic growth.