Major Indexes Close Higher as Tech Leads the Way
The U.S. stock market closed higher on Thursday, May 29, 2025, as investors cheered strong earnings from AI chipmaker Nvidia and reacted positively to a court ruling that blocked most of President Donald Trump’s tariffs. The S&P 500 (^GSPC) gained 0.8% to close at 5,912.88, while the tech-heavy Nasdaq Composite (^IXIC) climbed 1.4% to 19,223.91. The Dow Jones Industrial Average (^DJI) posted a more modest gain of 0.3%, finishing at 42,128.86.
The market’s positive performance came despite concerning economic data showing that U.S. GDP contracted 0.2% in the first quarter, slightly better than economists’ forecast of a 0.3% contraction.
Nvidia Leads Tech Rally Despite China Warning
Nvidia (NVDA) was the star performer of the day, jumping more than 5% after reporting quarterly revenues that soared 69% to $44 billion, easily beating Wall Street forecasts.
“The Chinese competitors have evolved,” Huang cautioned, noting that companies like Huawei have become “quite formidable” in the AI chip space.
Other tech giants also performed well, with the Philadelphia SE Semiconductor index rising 1.2%. Tesla (TSLA) shares gained 1.6% after CEO Elon Musk confirmed he would formally leave his role in the Trump administration.
Court Ruling Blocks Trump Tariffs, Boosting Market Sentiment
A significant catalyst for Thursday’s market gains was a ruling by the U.S. Court of International Trade that blocked most of President Trump’s sweeping tariffs imposed since January.
The White House has already filed an appeal against the decision, creating some uncertainty about the ultimate outcome. Nevertheless, the ruling provided temporary relief for companies concerned about the impact of tariffs on their supply chains and consumer demand.
Notable Stock Movers and Corporate News
While tech stocks led the gains, there were notable movements across other sectors:
– Boeing (BA) climbed 3.3% after CEO Kelly Ortberg announced plans to increase production of 737 MAX jets to 42 aircraft per month in the coming months and boost output to 47 monthly in early 2026.
– Salesforce (CRM) was a significant drag on the Dow, slumping 6.3% despite raising its annual revenue and adjusted profit forecasts.
– Best Buy (BBY) dropped 9.8% after the electronics retailer lowered its annual comparable sales and profit forecasts, citing concerns about U.S. tariffs weighing on consumer demand for big-ticket items.
– E.l.f. Beauty (ELF) surged 23.6%, making it one of the day’s top gainers.
Economic Data and Upcoming Events
Thursday saw the release of several important economic indicators. The second reading of Q1 GDP showed a contraction of 0.2%, while initial jobless claims rose to 240,000 for the week ending May 24, higher than the expected 230,000.
Pending home sales disappointed, falling 6.3% month-over-month in April, much worse than the expected 0.9% decline.
Looking ahead, investors will be watching Friday’s economic releases, including consumer confidence data. The market will also be monitoring developments in the Trump administration’s appeal of the tariff ruling and any potential retaliation from China regarding U.S. export restrictions.
Market Outlook
Despite Thursday’s gains, the S&P 500 remains about 3% below its all-time high touched on February 19, having rebounded from a nearly 19% decline earlier in April.
As May draws to a close, investors are balancing optimism about strong corporate earnings against concerns about economic contraction, persistent inflation, and ongoing trade tensions. The Federal Reserve’s cautious approach to interest rates, maintaining them between 4.25% and 4.5%, reflects these complex economic crosscurrents.