Traders work on the floor of the New York Stock Exchange during morning trading on May 27, 2025 in New York City.
Michael M. Santiago | Getty Images
The S&P 500 wavered on Thursday as investors analyzed the latest judicial developments on President Donald Trump’s “reciprocal” tariffs and Nvidia earnings.
The broad index gained 0.1% after trading as high as 0.9% up at session highs. The Nasdaq Composite ticked higher by 0.3%, also well off its highest intraday gain of 1.5%. The Dow Jones Industrial Average lost 131 points, or 0.3%, weighed down by a slide of more than 7% in Salesforce following earnings.
The U.S. Court of International Trade ruled on Wednesday night that Trump overstepped his authority when he imposed his “reciprocal” tariffs. The court ordered that the challenged tariff orders be vacated.
But the Trump administration filed a notice of appeal quickly following the judgment. The administration said it may ask the Supreme Court as early as Friday to pause the federal court’s ruling.
Trump’s on-again-off-again levy policy, as well as inflation fears fueled by the prospect of the tariffs, roiled markets last month. Some companies have also pointed to the taxes when dialing back their forecasts and noted uncertainty around trade policy and the impact on the consumer.
“The tariff drama isn’t over,” Adam Crisafulli of Vital Knowledge wrote in a note. “Trump has other legal avenues to pursue an aggressive tariff agenda, and investors expect he will utilize them.”
Nvidia rallies after earnings
Nvidia shares jumped more than 5%. The chipmaker exceeded expectations on the top and bottom lines in the first quarter, as its data center business recorded year-over-year growth of 73%.
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.
Stocks are coming off of a lackluster session Wednesday, but the major U.S. indexes are on track to close the week — and month — higher. The S&P 500 and 30-stock Dow are up 1.7% and 1.2% this week, respectively, while the tech-heavy Nasdaq has rallied more than 2%.
This month, the S&P 500 has gained 6%. The Dow has added 3.5%, while the Nasdaq has jumped close to 10%.
