US stocks climbed Thursday, led by gains in Nvidia, as upbeat earnings from the AI chipmaker helped lift investor sentiment across the tech sector. However, renewed trade policy turmoil and tariff confusion stemming from the Trump administration’s contested levies dampened enthusiasm, keeping broader gains in check.
The S&P 500 added 0.4% to close at 5,912.17, while the Nasdaq gained 0.39%, settling at 19,175.87. The Dow Jones Industrial Average rose 117 points, or 0.28%, finishing at 42,215.73. The major indexes remain on track for strong monthly performances, with the Nasdaq up nearly 10% in May.
Tariff ruling adds volatility
Markets faced fresh uncertainty after a federal trade court ruled that President Trump’s “Liberation Day” tariffs exceeded his authority under emergency powers. The ruling, issued Wednesday night, initially sparked optimism among import-heavy sectors. However, that was swiftly reversed when an appeals court temporarily reinstated the levies Thursday afternoon.
The administration has signalled it may seek emergency relief from the Supreme Court, potentially as early as Friday. Legal analysts expect a protracted battle, with trade partners and investors alike watching closely.
Nvidia powers tech rebound
Nvidia shares closed 3.25% higher after reporting stronger-than-expected earnings and guidance. The company posted US$44bn in revenue for the April quarter, with data centre sales up 73% year-on-year, powered by demand for its new Blackwell chips.
CEO Jensen Huang acknowledged the US$8bn hit from China export restrictions but emphasised surging demand in other regions, including sovereign cloud customers and global AI infrastructure projects. Analysts said the results “reinvigorated” the AI trade, with ripple effects across semiconductor stocks.
Fed reasserts independence after White House meeting
Federal Reserve Chair Jerome Powell met with President Trump on Thursday at the White House. Trump, who has previously labelled Powell “Too Late Powell” on social media, reportedly used the meeting to press his view that it was a “mistake” not to lower rates.
In a rare public statement, the Fed said the meeting took place “at the President’s invitation” and that Chair Powell “did not discuss his expectations for monetary policy, except to stress that the path of policy will depend entirely on incoming economic information and what that means for the outlook.”
Commodities and the dollar
Brent crude is trading 1.37% lower at US$64.01 a barrel.
WTI crude is trading 1.46% lower at US$60.94 a barrel.
Spot gold is trading flat at US$3318.05 an ounce.
Gold futures (COMEX) are trading 0.65% higher at US$3343.90 an ounce.
One Australian dollar is buying 64.47 US cents.
Futures
The SPI futures are pointing to a 17 point fall.
