The three major US stock indexes registered gains at the opening of trading today, Thursday, May 29, as risk appetite improved in the markets following a US court’s decision to reject the tariff increase. The Nasdaq led the session’s gains, gaining more than 1%, following Nvidia’s better-than-expected first-quarter results.
A panel of judges at the US Court of International Trade ruled yesterday, Wednesday, at the end of the session, to reject US President Trump’s trade agenda and prevent the imposition of global tariffs based on emergency reforms, arguing that they are illegal and can be challenged in federal court.
With regard to the S&P 500 index sector, the technology sector led the rise, rising by approximately 2.92%, benefiting from Nvidia’s results. Consumer discretionary goods rose by 1.85%, financials rose by 0.03%, and healthcare rose by 0.18%. Nvidia reported mixed results for the first quarter of this year. The chip and artificial intelligence giant reported revenue of $44.1 billion, exceeding expectations, and adjusted earnings per share of $0.96. Data center revenue fell to $39.1 billion, below expectations. Chinese export rules are expected to cause revenue to fall by approximately $8 billion in the second quarter, leading the stock to rise 5% at the opening bell today.
Tesla shares rose more than 2% today after Musk announced he would step down from his position as an advisor to President Trump, following concerns among Tesla investors that Musk was not giving the company enough focus.
In terms of economic data, the US gross domestic product (GDP) declined by 0.2% in the first quarter of this year, ending in March, according to the Bureau of Economic Analysis’ second estimate, compared to a 0.3% decline in the first estimate. This was better than expected, reflecting increased investment. In contrast, initial weekly unemployment claims rose to 240,000 in the week ending May 24, an increase of 14,000, bringing the four-week average down by 250 to 230,750.
The minutes of the US Federal Reserve’s meeting two weeks ago, between May 6 and 7, released at the end of trading yesterday, Wednesday, showed that many Fed members were concerned about the impact of tariffs on inflation, in addition to the rising likelihood of a recession.
The Dow Jones Industrial Average (Dow) is trading up approximately (51) points at 41,149, with gains of approximately 0.13%, while the S&P 500 index is recording gains of 45 points at 5,934, with a rise of approximately 0.77%. The Nasdaq index is rising by (216) points at 19,316, recording gains of approximately 1.13%.