Dow Futures Surge 500 Points as Court Blocks Trump Tariffs and Nvidia Reports Earnings Beat - 2025 .

 


U.S. stock futures experienced a significant rally on Thursday, May 29, 2025, following two major developments: a federal court's decision to block most of former President Donald Trump's proposed tariffs and a strong earnings report from 

Court Blocks Trump Tariffs

The U.S. Court of International Trade ruled that former President Trump's use of the International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs was unconstitutional. The court determined that only Congress has the authority to regulate foreign commerce, rendering the tariffs imposed since January invalid. This decision is subject to appeal, but it has already had a significant impact on financial markets.

In response to the ruling, U.S. stock futures surged:

  • Dow Jones Industrial Average futures rose by 1.31%

  • S&P 500 futures increased by 1.73%

  • Nasdaq 100 futures jumped by 2.15%

The decision was welcomed by investors, who viewed it as a step toward reducing trade tensions and uncertainty in the global economy. Markets in Asia and Europe also rallied, with Japan's Nikkei and South Korea's Kospi both up 1.9%, and European markets recording gains as well. 

Nvidia's Earnings Beat

Nvidia, a leading semiconductor company, reported robust earnings that exceeded analyst expectations. The company posted a 78% year-over-year increase in fourth-quarter revenue to $39.3 billion, with net income rising by 80% to $22 billion. The strong performance was driven by solid sales of its new Blackwell AI chips. 

Despite the impressive results, Nvidia's stock experienced a slight dip in after-hours trading. The company projected first-quarter revenue of approximately $43 billion, slightly above analyst expectations of $42 billion. However, Nvidia noted a narrowing of profit margins due to increased costs associated with new data center equipment and higher compensation for its growing workforce. 

Nvidia's strong earnings report contributed to the positive market sentiment, with shares of other semiconductor companies, including AMD and Broadcom, also rising. Major tech stocks like Apple, Meta, and Alphabet gained as well, reflecting investor optimism in the technology sector. 

Market Outlook

The combination of the court's decision to block the tariffs and Nvidia's strong earnings report has injected optimism into the markets. Investors are hopeful that the reduction in trade uncertainty will lead to a more stable economic environment. However, analysts caution that the situation remains fluid, with the potential for appeals and ongoing trade negotiations that could influence market dynamics.

As of the latest data, U.S. stock futures continue to show positive movement, indicating sustained investor confidence. The focus now shifts to upcoming economic data, including Q1 GDP estimates and PCE data, as well as comments from Federal Reserve officials, which could provide further direction for the markets.

In summary, the court's ruling against the tariffs and Nvidia's strong earnings have provided a boost to U.S. stock futures, signaling a positive outlook for the markets in the near term.

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