Stocks Soar on Nvidia's Earnings, But Tariff Turmoil Casts a Shadow

U.S. stocks surged on Thursday, with the S&P 500 climbing 0.4% after Nvidia's stellar first-quarter results sent waves of optimism through the market.

But hold your horses! The gains were thrown into chaos by the rollercoaster of President Donald Trump's tariff policies, leaving investors scratching their heads after a legal tug-of-war in the courts.

The tech-heavy Nasdaq Composite also shot up by 0.39%, while the Dow Jones Industrial Average tacked on 127 points, or 0.3%, despite Salesforce taking a nosedive with a 3.4% drop following their lackluster earnings. Earlier, all three indexes were soaring before the rug was pulled out from under them by the latest trade drama.

In a wild turn of events, a federal appeals court brought back Trump’s tariffs on the European Union mere hours after the U.S. Court of International Trade declared them illegal. Brace yourselves, because the administration might hit up the Supreme Court for a pause on the ruling as soon as Friday.

Investors are on edge as Trump’s flip-flopping on trade, especially his "reciprocal" tariff policy, fuels fears of inflation. Companies like Best Buy are pointing the finger at these tariffs for their gloomy outlooks.

Good day for Nvidia

Nvidia was the hero of the day, keeping the broader market from total meltdown. Its shares skyrocketed nearly 3% after smashing expectations with a 73% year-over-year surge in its data center business, raking in strong revenue and earnings.

Sure, they threw a curveball with a warning about an $8 billion hit next quarter thanks to U.S. export restrictions to China, but investors brushed it off like it was nothing, riding the high of Nvidia's unstoppable AI momentum.

Despite the trade policy storm, all major indexes are on track to end the week and month in the black.

The S&P 500 is up a whopping 6% for May, the Dow's up 3.5%, and the Nasdaq's soared nearly 10%. Now, all eyes are on Costco's upcoming earnings and whatever curveballs the White House throws at us next with those tariffs.