New York – U.S. stock markets posted solid gains on Thursday, buoyed by strong earnings from chip giant Nvidia and a court ruling from the U.S. Court of International Trade that was seen as a relief in the ongoing trade dispute narrative.
The S&P 500 rose by 0.8%, while the tech-heavy Nasdaq jumped 1.4%. The Dow Jones Industrial Average ended the session up around 35 points.
The rally was primarily driven by a more than 6% surge in Nvidia shares after the company reported quarterly earnings that beat expectations and issued upbeat guidance for the current quarter. CEO Jensen Huang stated that the smart computing market tied to artificial intelligence is “growing faster than expected,” boosting investor sentiment and confidence in the tech sector.
Meanwhile, markets welcomed a ruling by the U.S. Court of International Trade, which found that former President Donald Trump had exceeded his constitutional authority in imposing reciprocal tariffs on key trade partners. The court ordered the administration to halt the collection of those tariffs—a move interpreted as a temporary easing of trade war concerns. Although the ruling may ultimately be appealed to higher courts, it provided investors with some breathing room.
On the economic front, the second estimate for U.S. GDP in Q1 2025 showed a contraction of 0.2%, slightly better than the initial estimate of 0.3%. However, corporate profits fell by 3.6% during the same period, indicating persistent pressure on business margins despite the modest improvement in economic growth figures.
Technology was clearly the best-performing sector during the session, while consumer goods, utilities, and industrials lagged behind amid ongoing uncertainty over economic momentum and interest rate policies.
Background:
These developments come as markets await clearer signals from the Federal Reserve regarding its monetary policy direction, especially in light of slowing earnings and signs of weakening economic momentum.
Thursday’s session sent a clear message: leading tech firms still have the power to move the markets, while legal and political developments play a direct role in shaping investor sentiment. For now, artificial intelligence and geopolitics remain the key forces driving global financial markets.
