Traders work on the floor of the New York Stock Exchange during morning trading on May 27, 2025 in New York City.
Michael M. Santiago | Getty Images
Stock futures advanced on early Thursday after a federal court knocked down President Donald Trump’s “reciprocal” tariffs. Solid earnings from artificial intelligence heavyweight Nvidia also buoyed the market.
Futures tied to the S&P 500 rose 0.8%, while Nasdaq 100 futures gained 1.3%. Dow futures climbed 100 points, or 0.2%.
The U.S. Court of International Trade ruled on Wednesday night that Trump overstepped his authority when he imposed his “reciprocal” tariffs. The court ordered that the challenged tariff orders be vacated.
The April 2 announcement of Trump’s duties, the president’s changing approach toward trade policy, as well as inflation fears fueled by the prospect of the tariffs, roiled markets last month. Some companies have also highlighted the levies and dialed back their forecasts, pointing to uncertainty around trade policy and the impact on the consumer.
For now, the judges’ decision appears to have allayed investors’ worries. However, this development can also raise concerns that U.S. trade negotiations with foreign countries could be drawn out into later in the year than previously anticipated.
“The tariff drama isn’t over,” wrote Vital Knowledge’s Adam Crisafulli in a morning note. “Trump has other legal avenues to pursue an aggressive tariff agenda, and investors expect he will utilize them.”
Elsewhere, Nvidia shares jumped more than 5% in after-hours trading. The chipmaker exceeded expectations on the top and bottom lines in the first quarter, as its data center business recorded year-over-year growth of 73%.
“Wednesday’s Nvidia earnings report is pivotal not just for Nvidia but for the entire stock market,” said James Demmert, chief investment officer of Main Street Research. “It can rejuvenate investor optimism across the board and help investors to focus on the power of AI and less on headlines out of Washington on tariffs and taxes.”
Stocks are coming off of a lackluster session Wednesday. The S&P 500 ended the day almost 0.6% lower, while the tech-heavy Nasdaq Composite lost 0.5%. The Dow fell nearly 245 points, or 0.6%.
Major U.S. indexes are on track to close the week — and month — higher. The S&P 500 and 30-stock Dow are up 1.5% and 1.2% this week, respectively, while the Nasdaq has rallied nearly 2%. The tech sector has surged more than 10% in May, fueled by AI announcements from Big Tech player Alphabet.
This month, the S&P 500 has gained 5.7%. The Dow has added 3.5%, while the Nasdaq has jumped 9.5%.
This advance comes after President Donald Trump on Sunday walked back his threat to implement a 50% tariff on the European Union on June 1, delaying the date to July 9. Although investors cheered the news, critiques of Trump’s tariffs have emerged given their wild effect on markets.
