Today’s Market ActionMajor Indexes Jump on Positive Trade News
U.S. stock markets are experiencing a significant rally on Thursday, May 29, 2025, as investors react positively to a court ruling blocking some of President Trump’s tariffs and strong earnings from tech giant Nvidia (NVDA). As of mid-morning trading, the Dow Jones Industrial Average is up approximately 460 points (1.09%), while the S&P 500 has gained 89 points (1.51%) and the Nasdaq Composite is leading the advance with a surge of 407 points (1.90%).
This upward momentum follows a mixed performance on Wednesday when the major indexes closed slightly lower. The market’s positive reaction today stems primarily from a decision by the U.S. Court of International Trade, which ruled that some of Trump’s global tariffs imposed under emergency powers are illegal. This ruling, which can be appealed by the Trump administration in federal court, has eased concerns about escalating trade tensions that had weighed on markets in recent weeks.
Nvidia Earnings Boost Tech Sector Despite China Concerns
Nvidia’s quarterly results, released after Wednesday’s market close, have provided additional fuel for today’s rally. The AI chipmaker beat expectations on revenue but fell short on adjusted earnings per share due to the impact of U.S. government restrictions on selling its H20 chips to China. Despite warning that it expects to miss out on approximately $8 billion in sales in the next quarter due to these restrictions, Nvidia shares jumped in after-hours trading and are continuing their upward trend today.
During the earnings call, CEO Jensen Huang expressed concerns about U.S. chip export curbs, stating they have spurred innovation among rivals in China and potentially weakened America’s competitive position. “China’s AI moves on with or without U.S. chips,” Huang remarked. “The question is whether one of the world’s largest AI markets will run on American platforms.”
Key Earnings Reports and Economic Data on Tap
Today features a busy schedule of corporate earnings reports that could further influence market direction. Notable companies reporting include Costco Wholesale (COST), Dell Technologies (DELL), Marvell Technology (MRVL), and Best Buy (BBY).
Investors are also awaiting important economic data releases today, including weekly jobless claims and a revision of first-quarter U.S. gross domestic product (GDP). The initial GDP release showed that economic growth contracted for the first time in three years at the start of 2025, and today’s revision could provide further insights into the health of the economy.
Other Notable Market Movers
Several individual stocks are making significant moves today beyond Nvidia. Li Auto (LI) is attracting attention as it releases its Q1 2025 earnings before market open.
In the financial sector, Royal Bank of Canada (RY) and Canadian Imperial Bank of Commerce (CM) are reporting their Q2 2025 earnings, with analysts expecting positive year-over-year growth for both institutions.
Looking Ahead: Trade Policy and Fed Decisions
Market participants continue to closely monitor developments in U.S. trade policy. The Trump administration’s approach to tariffs remains a key concern, with particular attention on whether the administration will appeal the recent court ruling. Additionally, the Commerce Department is reportedly moving to restrict the sale of chip design software to China, potentially escalating tensions in the technology sector.
Federal Reserve policy also remains in focus as investors assess the central bank’s next moves regarding interest rates. Recent minutes from the Federal Open Market Committee (FOMC) meeting indicated that Fed officials are taking a wait-and-see approach to determining the interest rate path forward.
As markets navigate these complex factors, today’s rally suggests investors are finding some relief in the court’s tariff ruling and drawing confidence from Nvidia’s performance, which indicates that major tech companies may be able to weather trade-related challenges better than initially feared.