U.S. stocks traded cautiously as of midday Thursday, as a strong earnings report from Nvidia pushed tech stocks higher while broader market sentiment remained muted amid ongoing trade policy concerns.
The Nasdaq Composite rose 0.24%, carried by gains in AI-related names. The S&P 500 edged up 0.20%, while the Dow Jones Industrial Average slipped 0.01% as investors digested conflicting signals from corporate earnings, macro data, and a legal setback to President Trump’s tariff regime.
Markets initially welcomed a U.S. court decision blocking a wide swath of Trump’s proposed tariffs, but gains faded as questions emerged about the administration’s next move and the broader economic impact of the trade war.
Market Movers:
- Nvidia (NVDA) +3.04%: Nvidia shares rallied after the company reported better-than-expected first-quarter revenue, reinforcing confidence in ongoing demand for AI chips. While management flagged a potential $8 billion hit in Q2 due to U.S. export restrictions to China, investors appeared to focus on the company’s resilience and strength in non-China markets. The report helped steady optimism that Big Tech can weather geopolitical headwinds.
- Best Buy (BBY) -8.25%: The electronics retailer tumbled after slashing its full-year guidance, citing economic uncertainty and tariff-related headwinds. Same-store sales and revenue both missed expectations, and executives warned that rising costs could continue to pressure margins. The results reinforced fears that consumer-facing companies are struggling to navigate Trump’s evolving trade policy.
- e.l.f. Beauty (ELF) +21.65%: Shares of the cosmetics company surged after reporting strong quarterly results and announcing a $1 billion acquisition of Hailey Bieber’s skincare brand, Rhode. Investors welcomed the deal as a strategic play to expand e.l.f.’s market share and broaden its demographic reach. The move positions the company as a rising force in premium beauty.
Tariff Turbulence Returns After Court Ruling
Markets were initially lifted by news that the U.S. Court of International Trade struck down large portions of President Trump’s global tariffs, ruling that the executive branch had overstepped its authority. However, the boost quickly faded as strategists pointed out that the administration is likely to appeal—and could reimpose tariffs through other legal channels.
Uncertainty about the future of trade policy continues to hang over corporate planning. Companies in sectors like retail and manufacturing remain on edge as supply chain decisions are complicated by legal volatility and geopolitical brinkmanship. Investors are now weighing whether the court’s decision is a real turning point—or just a temporary delay.
Economic Data Adds to Caution
The mixed market performance also came against the backdrop of weak macroeconomic data. Weekly jobless claims rose more than expected, suggesting some softening in the labor market. Meanwhile, revised GDP data showed the economy contracted at a 0.2% annualized pace in the first quarter—worse than previously estimated.
Housing data also disappointed, with pending home sales falling sharply in April. High mortgage rates, combined with economic uncertainty tied to tariffs, appear to be weighing heavily on buyers. The weak report added to fears that higher borrowing costs are cooling demand faster than expected.
Looking Ahead
While Nvidia’s results provided a near-term boost for tech stocks, the broader market remains on uncertain footing. Investors are now turning their attention to how the White House will respond to the tariff ruling and whether additional legal or legislative maneuvers are in the works.
With economic growth under pressure, inflation still elevated, and policy uncertainty lingering, traders are likely to remain cautious heading into the weekend. The next major catalysts could come from upcoming inflation data and any shifts in tone from the Federal Reserve—or the Trump administration’s next move on trade.
