4:18pm: Wall Street ends higher
US stocks ended in the green on Thursday, with all major indexes notching modest gains as investors digested a mix of corporate news and trade policy developments.
The Dow Jones added 117 points to close at 42,216, up 0.3%. The S&P 500 rose 0.4% to 5,912, and the Nasdaq climbed 0.4% to finish at 19,176. The Russell 2000, which tracks smaller companies, edged up 0.3% to 2,074.
A key court ruling grabbed attention late in the day. A federal appeals court decided that former President Trump’s sweeping tariffs will stay in effect for now—just a day after a lower court had blocked them, calling the process behind their rollout “unlawful.” The reversal adds a fresh layer of uncertainty around U.S. trade policy, but markets seemed to take it in stride.
One bright spot was Nvidia, which jumped more than 3% after reporting better-than-expected revenue for the first quarter. The AI chipmaker did caution that it could miss out on $8 billion in second-quarter sales due to U.S. export restrictions to China, but investors appeared willing to look past that. The strong showing helped boost confidence that Big Tech may be able to weather potential headwinds from trade tensions.
With earnings season winding down, investors are now turning their attention to upcoming inflation data and any new signals from the Federal Reserve on the direction of interest rates.
3:45pm: Tariff tug-of-war
President Trump's broad tariff strategy is back on—for now.
A federal appeals court has temporarily allowed the tariffs to stay in place, just a day after a trade court had blocked many of them, calling the way they were enacted "unlawful." That earlier ruling had halted key parts of Trump’s trade approach, including tariffs aimed at China and reciprocal duties targeting U.S. trading partners. However, levies on steel, aluminum, and select Chinese goods were left untouched.
Now, the situation remains in legal limbo. The appeals court's decision gives the Trump administration a brief window to defend its case, with filings due by June 9. The White House has made it clear it’s willing to take the fight all the way to the Supreme Court if needed, and officials are signaling that these legal battles won’t stop Trump from pushing forward with his tariff-heavy economic agenda.
3:25pm: Nvidia still has analysts bullish
Wall Street analysts are still bullish on Nvidia following its latest earnings, citing strong fundamentals, accelerating AI rack deployments, and improving gross margins despite near-term headwinds from U.S. export restrictions to China.
Bank of America pointed to the full production of the Blackwell architecture, improved China sales visibility, and gross margins poised to return to the mid-70% range, projecting long-term earnings power of $10 per share and free cash flow margins above 50%.
UBS echoed the optimism, emphasizing Nvidia’s confirmation that hyperscalers are deploying nearly 1,000 Blackwell racks weekly, validating strong supply chain momentum.
Despite a $2.5 billion data center revenue hit from the China ban, both banks see resilient demand and anticipate a partial rebound in sales starting in FQ3.
2:40pm: Stocks on the move
Boeing Co (NYSE:BA, ETR:BCO) shares rose after CEO Kelly Ortberg announced plans to ramp up 737 MAX production to 47 jets per month by the end of 2025.
C3.ai (NYSE:AI) surged over 26% after posting stronger-than-expected fiscal Q4 results, driven by robust demand for its Generative AI products and partner-led deals.
Canadian Imperial Bank of Commerce (TSX:CM) beat earnings expectations in Q2 2025 with adjusted EPS of $2.05, surpassing the $1.88 consensus.
Royal Bank of Canada (TSX:RY) reported an 11% year-over-year profit increase in Q2, aided by its HSBC Canada acquisition and solid wealth management performance.
Best Buy Co Inc (NYSE:BBY) delivered mixed Q1 results and lowered its fiscal 2026 guidance due to higher electronics costs from tariffs.
Tesla Inc (NASDAQ:TSLA) shares climbed after Elon Musk’s exit from the Trump White House, a move seen as refocusing the company on autonomy and robotics.
HP Inc (NYSE:HPQ) fell over 6% after slashing its full-year EPS outlook below Wall Street expectations, citing higher costs from US tariffs.
1:45pm: Thursday's headlines
Nvidia Corp (NASDAQ:NVDA, ETR:NVD) beat Wall Street expectations for first-quarter revenue, driven by surging demand for its data center chips, even as profit and gross margin fell short of forecasts.
Donald Trump's tariffs were declared illegal by a US trade court in a unanimous decision that found the president had wrongfully invoked emergency laws.
Chinese AI startup DeepSeek has announced an upgrade to its R1 model, the reasoning-focused artificial intelligence system that brought it international attention earlier this year.
Shares in e.l.f. Beauty Inc (NYSE:ELF) surged after it snapped up Hailey Bieber's 'Rhode' skincare brand in a deal that could reach $1 billion.
Tesla Inc (NASDAQ:TSLA) shares rose in early trading on Thursday after CEO Elon Musk’s formal departure from the Trump White House.
12:32pm: Mixed picture at midday
Stocks are treading mixed ground at midday Thursday as Wall Street weighs a flurry of new economic data, corporate earnings, and fresh trade headlines.
The Dow is down 0.2%, pulled lower by weakness in some blue-chip names, while the S&P 500 is inching up 0.2% and the tech-heavy Nasdaq is outperforming with a 0.5% gain.
Nvidia is stealing the spotlight once again, rallying after blowing past first-quarter earnings estimates. Even with the chipmaker flagging a potential $8 billion hit from US export restrictions to China, investors are applauding the results as evidence of tech’s resilience.
Adding to the upbeat mood, a US trade court ruling blocking a swath of Trump-era tariffs (for now) has given trade-sensitive names a lift. Still, not all is rosy—retailers like Best Buy and hardware players such as HP are struggling, citing tariff-related headwinds. Overall, sentiment remains cautiously optimistic as investors keep an eye on Washington and the Fed for the next big signal.
12:11pm: 'Chaotic' decision
Analysts warned that the court’s decision to strike down parts of Trump’s tariff regime adds a fresh layer of uncertainty for markets and businesses already grappling with volatile trade policy.
Ipek Ozkardeskaya of Swissquote Bank called the ruling a long-overdue correction to “chaotic” policymaking, saying it could trigger a global rally in equities, the U.S. dollar, and commodities if the tariffs are fully blocked. However, she noted the Federal Reserve is unlikely to act until there is more clarity on the policy front.
Others cautioned that the legal fight is just beginning. Comerica Bank’s Bill Adams said the ruling amplifies the uncertainty weighing on business investment and hiring, while Kathleen Brooks of XTB warned that the court only addressed how the tariffs were implemented—not their substance.
With the White House appealing and a potential Supreme Court battle looming, Brooks said tariffs remain “a fact of life” and will likely continue to cloud the global economic outlook.
11:35am: Growth remains sluggish
The second estimate of US real GDP for the first quarter of 2025 confirmed continued weakness in the economy, with lingering policy uncertainty—particularly around tariffs—weighing heavily on growth prospects, said Comerica's Bill Adams.
"Policy uncertainty has mired the economy in slow gear in the first half of 2025," said Bill Adams, the bank's Chief Economist. "Tariff uncertainty is causing many businesses to slow-roll investment and hiring decisions while they wait for clarity."
Despite minor revisions, the GDP estimate showed the same underlying pattern: American consumers and businesses shifted spending toward imports, anticipating price hikes, while pulling back from domestic goods and services, Adams noted.
Although layoffs remain relatively low, job market strain is emerging. Continued jobless claims in mid-May hit their highest level since late 2021, reflecting a longer duration of unemployment for those who do lose jobs.
Looking ahead, Comerica expects real GDP to either shrink again or grow only modestly in the second quarter. Imports are likely to remain elevated, and consumer and business spending cautious. However, a recession still seems unlikely, with Adams projecting a rebound in the second half of the year as focus shifts from trade disruptions to potential tax relief.
10:55am: Pending home sales drop
More economic data coming your way.
US pending home sales fell sharply in April, dropping 6.3% month-over-month compared to a 6.1% gain in March and well below the estimated 1.0% decline.
The Pending Home Sales Index also declined to 71.3 from 76.5, indicating a significant slowdown in housing market activity.
10:31am: Economy losing momentum
The latest US economic data reinforced concerns that the economy is starting to lose momentum, according to Kathleen Brooks, research director at XTB.
US Q1 GDP contracted by 0.2%, a slight improvement over expectations for a 0.3% decline, but a stark reversal from the 2.4% growth recorded in the previous quarter.
“This is a clear shift from the strength we saw at the end of last year,” Brooks said.
Personal consumption was also revised lower, down to 1.2% from an initial 1.7%, highlighting weakening demand.
Brooks said the most notable surprise came from the labor market. Initial jobless claims rose to 240,000, exceeding expectations of 229,000 and up from 226,000 the week prior.
"The biggest shock was the rise in initial jobless claims," she noted. "This is only a 4-week high, but it suggests that the labor market in the US is brittle, and it may only be a matter of time before the unemployment rate rises."
Continuing claims also increased, indicating it is taking longer for job seekers to find work — another sign that employment conditions may be deteriorating.
9.33am: Tech boost lifts Wall Street.
And we're off. And, as expected, we saw a strong start in the tech sector after Nvidia's results after hours, with the Nasdaq opening 1.3% higher at 19,348.
The 'old economy' Dow Jones was in a more subdued mood, though still marginally in the green at 42,149.19, as investors digested the
9.23am: White House plays down illegal tariff ruling
White House trade advisor Peter Navarro said the Trump administration has a “strong case” in its appeal against the Court of International Trade’s decision.
He said the White House has a “number of different options on trade”.
He said there was “no question” that there was an economic emergency to justify the legislation that Trump used to bypass Congress.
“Nothing has really changed,” Navarro said. “Trade deals are going to happen” anyway.
Trump adviser Kevin Hassett has added some details on those, saying that three trade pacts are nearly finalized and more are coming.
He called the decision a “hiccup”.
Nasdaq futures are up 1.3% and those for the S&P 500 are up almost 0.8%.
9.05am: GDP fell 0.2% in Q1
The US economy contracted in the first three months of 2025, but by less than the first estimate, the latest official data showed.
Gross domestic product fell 0.2% in the first quarter compared to a year ago, compared to the initial reading of a 0.3% decline, the Bureau of Economic Analysis said.
Either way, it was a big slowdown from the 2.4% growth in real GDP in the fourth quarter of 2024.
The BEA said the decrease in real GDP in the first quarter primarily reflected an increase in imports, which are a subtraction in the calculation of GDP, and a decrease in government spending, partly offset by increases in investment, consumer spending and exports.
8.15am: Nasdaq tipped to lead gains on Wall Street after Nvidia numbers, Trump tariff decision
Wall Street stocks are expected to start higher on Thursday, boosted by strong results from Nvidia overnight but with the market weighing the likely fall-out from a US court declaring that President Trump's tariffs illegal.
Dow Jones futures were pointing to a 0.3% gain with under an hour and a half before the opening bell, having been up 1.4% a couple of hours earlier.
Similarly, S&P 500 and Nasdaq futures were up 0.8% and 1.3%, compared to gains above 1.3% and 1.7% in the early hours.
The previous session ended with the Dow and S&P 0.6% lower and the Nasdaq down 0.5%.
Two significant events for markets followed.
First, Nvidia Corp (NASDAQ:NVDA, ETR:NVD) reported first-quarter results, where revenue beat expectations by a comfortable margin, at $44.06 billion compared to estimates of $43.2 billion, while earnings per share also beat estimates at $0.96 versus $0.93.
Then the Manhattan-based Court of International Trade said President Trump had overstepped his authority and wrongfully invoked emergency laws in how he imposed tariffs earlier this year.
Under US Constitution, the three-judge panel said, only Congress has the authority to regulate commerce with other countries, something the president cannot override, even under the International Emergency Economic Powers Act that the Trump administration used.
After the case was brought by a conservative group that represented small businesses, the court imposed a permanent injunction on the blanket 10% tariff orders issued by Trump in January, plus the 20% tariff on imports from China, and some of the 25% tariff on Canada and Mexico not in compliance with the USMCA free-trade pact.
While a few exceptions were not covered by the ruling, including the tariffs on steel, aluminum and automobiles, the court gave the administration 10 days to "effectuate" the order but did not specify how the tariffs should be unwound.
The White House immediately appealed the decision, with market analysts suggesting the case is likely to go to the Supreme Court, where six of the nine justices are Republican appointees, and will just create further uncertainty and potential concern for bond markets.