Today’s Complete Market CoverageMajor Indexes Surge on Tariff Ruling and Strong Tech Earnings
The U.S. stock market is showing significant strength in midday trading on Thursday, May 29, 2025, as investors react positively to a court ruling blocking some of President Trump’s import tariffs and impressive earnings from tech giant Nvidia.
As of midday, the S&P 500 is up 0.8% to 5,991.75, reaching a one-week high. The tech-heavy Nasdaq Composite is leading gains with a 1.4% increase to 19,100.94, hitting a three-month high. Meanwhile, the Dow Jones Industrial Average has added 0.3% to 42,154.81.
The market rally comes after the U.S. Court of International Trade issued a unanimous ruling late Wednesday that blocked President Trump’s “Liberation Day” tariffs on global goods. The court determined that Trump wrongfully invoked emergency powers to justify the tariffs. The ruling applies to Trump’s global 10% flat tariff, elevated rates on China and other countries, and fentanyl-related tariffs on China, Canada, and Mexico.
Nvidia Leads Tech Sector Higher Despite China Challenges
Semiconductor stocks are leading today’s market gains, with Nvidia (NVDA) jumping more than 5% after reporting stellar quarterly results. The AI chip giant posted Q1 revenue of $44.06 billion, exceeding analyst expectations of $43.29 billion. Nvidia’s market capitalization has surged by approximately $160 billion to nearly $3.5 trillion, temporarily making it the world’s most valuable company, surpassing Microsoft.
Despite the positive reaction, Nvidia warned of significant challenges related to U.S. export restrictions to China. The company took a $4.5 billion charge last quarter and expects a further $8 billion loss this quarter due to these restrictions. During the earnings call, CEO Jensen Huang expressed concerns about the export controls while predicting “exponential growth” for the AI computing market.
Other semiconductor stocks are also rallying, with Microchip Technology (MCHP), GlobalFoundries (GFS), ON Semiconductor (ON), Micron Technology (MU), and Marvell Technology (MRVL) all posting gains of more than 2%.
Economic Data Points to Slowing Growth
Today’s economic data releases have provided mixed signals for investors. U.S. weekly initial unemployment claims rose by 14,000 to 340,000, indicating a weaker labor market than expected. Weekly continuing claims unexpectedly increased by 22,000 to a 3½-year high of 1.919 million.
In a slight improvement from initial estimates, U.S. Q1 GDP was revised upward to -0.2% (quarter-over-quarter annualized) from the previously reported -0.3%. Additionally, the Q1 core PCE price index, the Federal Reserve’s preferred inflation gauge, was revised lower to 3.4% from the previously reported 3.5%, which could be seen as a dovish factor for Fed policy.
The 10-year Treasury note yield has declined by approximately 3 basis points to 4.45% in response to these economic indicators.
Notable Stock Movers Beyond Tech
While tech stocks are leading today’s rally, several other companies are making significant moves:
– Elf Beauty (ELF) has surged more than 26% after reporting strong Q4 net sales of $332.6 million and announcing the acquisition of Hailey Bieber’s Rhode beauty brand for $800 million.
– Veeva Systems (VEEV) is up more than 18% after beating Q1 revenue expectations and raising its full-year forecast.
– Nordson (NDSN) has gained more than 9% after reporting better-than-expected Q2 sales and providing strong Q3 guidance.
On the downside:
– HP Inc (HPQ) has dropped more than 8% after reporting disappointing Q2 adjusted earnings and cutting its full-year forecast.
– Best Buy (BBY) is down more than 7% after reducing its 2026 adjusted EPS guidance, citing economic uncertainty around tariffs.
– SentinelOne (S) has fallen more than 13% after lowering its 2026 revenue forecast.
Upcoming Market Events to Watch
Investors are closely monitoring several key events that could impact market direction in the coming days:
Today after market close, Costco Wholesale (COST) will report its Q3 2025 earnings, which will be closely watched given the difficult position retailers find themselves in regarding potential tariff impacts.
Other notable companies reporting earnings today include Dell Technologies (DELL), Marvell Technology (MRVL), Gap (GAP), Ulta Beauty (ULTA), and Zscaler (ZS).
Looking ahead to Friday, investors will focus on April personal spending (expected +0.2% month-over-month) and personal income (expected +0.3% month-over-month). The April core PCE price index, the Fed’s preferred inflation gauge, is expected to rise +0.1% month-over-month and +2.5% year-over-year.
Market Outlook and Analyst Perspectives
The Q1 earnings season is winding down, with more than 90% of S&P 500 companies having reported results. Impressively, 77% have beaten estimates, the highest percentage since Q2 of 2024. Earnings growth in Q1 is running at +13.1%, significantly higher than the +6.6% expected before the start of the season.
Despite today’s rally, market participants remain cautious about potential volatility related to trade policies. The Trump administration is expected to appeal the court’s tariff ruling in federal court, which could create uncertainty in the coming weeks.
Analysts are particularly focused on how retailers will navigate the challenging tariff environment. President Trump recently told Walmart to “eat” price hikes associated with new duties following its latest results, putting pressure on the entire retail sector.
As we move into the final month of Q2, investors will be watching closely for any signs of economic slowdown or inflation resurgence that could influence the Federal Reserve’s monetary policy decisions in the coming months.