S&P500 and Nasdaq 100: US Indices Rise on Nvidia Surge and Trump Tariff Reversal

S&P 500 Futures Rise as Court Blocks Trump Tariffs, Nasdaq Jumps on Nvidia Earnings Boost

Stock futures climbed Thursday morning after a federal court ruled against former President Donald Trump’s “reciprocal” tariffs, lifting a significant trade policy overhang. The decision, paired with upbeat earnings from Nvidia, gave tech stocks a notable premarket lift, helping Nasdaq futures surge 1.3%. S&P 500 futures rose 0.8%, while Dow futures gained a modest 0.2%.

The U.S. Court of International Trade ruled late Wednesday that Trump exceeded his executive authority when imposing retaliatory tariffs. This outcome relieves immediate pressure from tariff-sensitive sectors and has buoyed investor confidence. However, analysts caution that Trump retains other legal channels to reintroduce tariffs, leaving the trade front far from settled.

How Did Nvidia and Other Chip Stocks Drive the Nasdaq Rally?

Nvidia shares popped over 6% in premarket trading after the AI chipmaker crushed earnings estimates. Fiscal Q1 revenue came in at $44.06 billion, beating expectations of $43.31 billion, while EPS hit $0.96, topping forecasts of $0.93. The company’s data center unit, which grew 73% year-over-year, led the charge.

Other chipmakers followed Nvidia’s lead. Marvell Technology gained 5%, Broadcom and AMD each rose 3%, and Intel and Taiwan Semiconductor added 1%. Nvidia’s strong results are being viewed as a bellwether for the broader AI trade, reigniting bullish sentiment across the tech space.

Which Stocks Are Reacting to Tariff Relief?

Shares of tariff-sensitive retailers rallied on the court’s ruling. Nike and Deckers gained 2%, while Lululemon and Dollar Tree added 1%. E.l.f. Beauty surged 9% after an earnings beat and plans to acquire Rhode in a $1 billion deal. Though the company held off on issuing full-year guidance due to tariff concerns, sentiment in the beauty segment improved broadly. Estée Lauder, Coty, and Ulta each advanced between 1% and 2%.

Retail wasn’t the only sector catching a bid. Veeva Systems jumped 14% on strong earnings, while Burlington Stores and Kohl’s rose 7% and 6% respectively following better-than-expected quarterly results. Salesforce also edged higher on solid guidance.

What Do Jobless Claims and GDP Revisions Say About the Economy?

Initial jobless claims rose to 240,000 last week, above expectations of 230,000, driven by a spike in Michigan filings. Continuing claims also rose, reaching their highest level since November 2021. Meanwhile, Q1 GDP was revised to a smaller contraction of 0.2%, helped by a 24.4% surge in private investment, though consumer spending was revised lower to 1.2%.

What’s the Market Outlook Heading Into June?

Traders are weighing the cooling consumer data against strong corporate results and easing trade tensions. The tech sector, lifted by AI optimism, continues to lead market sentiment. However, ongoing legal and policy uncertainty around tariffs, combined with mixed economic signals, could temper gains. Eyes now turn to upcoming inflation readings and Fed commentary for clues on the policy path ahead.

More Information in our Economic Calendar.