Nvidia’s better-than-feared outlook and a court ruling blocking some tariffs for now had Wall Street back in rally mode on Thursday.
The Dow Jones Industrial Average was up 52 points, or 0.1%. The S&P 500 was up 0.8%. The Nasdaq Composite was up 1.4%.
Nvidia was leading tech and AI-linked stocks higher, while the rest of the market was trying to make sense of the latest reprieve on tariffs.
The U.S. Court of International Trade ruled President Donald Trump’s “Liberation Day” tariffs exceeded authority granted to him under the 1977 International Emergency Economic Powers Act.
UBS Global Wealth Management Chief Economist Paul Donovan argues that while markets reacted positively to the ruling, “the US has not been reset to its factory settings.”
“For now, the court ruling lifts a significant tax burden from US consumers and companies,” Donovan says. “However, the main outcome is uncertainty. The decision will be appealed; the Supreme Court may again prefer Trump to precedent. Trump may use other legislation to reimpose taxes.”
S&P 500 futures briefly crossed the 6000 level before losing some steam early in the morning, suggesting that technical levels served as resistance in this morning’s rally.
