U.S. Stocks Rise despite Trade Policy Uncertainty
U.S. stocks saw a boost on Thursday, with the S&P 500 gaining 0.4%. This uptick was largely due to Nvidia’s extraordinary first-quarter earnings. The tech giant’s shares soared nearly 3%, thanks to a 73% year-over-year growth in its data center buisness. both revenue and earnings surpassed expectations.
Tho, the market’s enthusiasm was somewhat dampened by confusion over president Trump’s tariff policy. A federal appeals court reinstated tariffs on the European Union, contradicting an earlier ruling by the U.S. Court of international Trade.This uncertainty has left investors cautious.
The Nasdaq Composite climbed 0.39%, and the Dow jones Industrial Average added 127 points, or 0.3%. Despite a 3.4% drop in Salesforce due to weak earnings, all major indexes are set to end the week and month on a positive note. The S&P 500 is up 6% for May,the Dow 3.5%, and the Nasdaq nearly 10%.
Investors are concerned about the impact of fluctuating trade policies on inflation. Companies like Best Buy have cited tariffs as a reason for weaker forecasts. The market now awaits Costco’s earnings and further White House actions on tariffs.
Despite the challenges, Nvidia’s strong AI momentum has reassured investors. The company warned of an $8 billion hit in the next quarter due to U.S. export restrictions to China, but this did not deter the market’s positive response.
