The Nasdaq and the S&P 500 popped higher as trading began Thursday, advancing after a federal court ruled that most of President Donald Trump's planned tariffs on other nations' goods are illegal. The indexes were aided by a jump in Nvidia (NVDA) after its earnings report, and its shares signaled a breakout on the stock market today. The Dow Jones Industrial Average also rose, but its gain was more subdued.
The Dow Jones index picked up less than 0.1%. The Nasdaq composite and the S&P 500 made stronger moves, with the former up 0.5% and the latter up 0.5%. A downturn in shares of Salesforce.com (CRM) limited upside for the Dow index, although the enterprise software maker posted first-quarter earnings and revenue edged by estimates. Salesforce's revenue guidance for the July quarter also came in above expectations. Salesforce shares were off more than 7%. (Click here for the latest intraday update on the stock market today.)
The market's overall gain arrived in the wake of Wednesday's losses in which the Dow and S&P 500 declined 0.6%, and the Nasdaq composite fell 0.5%.
The tariff ruling and Nvidia earnings continue to propel the market rally's catalysts: a de-escalating trade war and revived optimism in artificial intelligence. Amazon.com (AMZN), On Holding (ONON), Broadcom (AVGO), and Taiwan Semiconductor (TSM) flashed buy signals Thursday.
Veeva Systems (VEEV) and Nutanix (NTNX) were also earnings movers. Veeva is set to gap out of a base while Nutanix eyes a buy point.
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Trump Tariffs Ruled Illegal
The U.S. Court of International Trade ruled late Wednesday that President Trump exceeded his authority under the International Emergency Economic Powers Act of 1977. The three-judge panel ruled that Congress did not delegate "unbounded" tariff authority.
The court also rejected Trump's authority to declare emergencies at will to justify sweeping tariffs.
The court issued a summary judgment, blocking Trump's "Liberation Day" April 2 tariffs as well as fentanyl-related tariffs on Canada, Mexico and China.
The Trump administration plans to appeal via federal court.
Trump does have some various legal tools to reimpose many of the duties struck down Wednesday. Industry-specific tariffs on autos, steel and aluminum remain, based on authority outlined in Section 232 of the Trade Expansion Act of 1962. The section gives the president broad power to control imports — via tariffs if necessary — if they are found to be a threat to national security.
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Dow Jones Stocks: Nvidia Earnings Jump
Nvidia earnings topped views amid booming data center sales. The AI chip giant guided slightly lower on second-quarter revenue, reflecting a loss of $8 billion in sales of H20 chips that the U.S. government blocked from selling to China. But Chief Executive Jensen Huang sees AI momentum.
Nvidia stock jumped more than 5%, breaking out above a 137.40 handle buy point. Nvidia stock fell 0.5% to 134.81 on Wednesday.
Artificial intelligence peers also climbed, with Broadcom rising within a buy zone and Taiwan Semiconductor moving back above a handle entry. Broadcom reports earnings next week.
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Elon Musk Out Of DOGE, Tesla Robotaxi Launch Set?
Tesla rose more than 1% Thursday morning as CEO Elon Musk said he is formally stepping away from his work for Trump with the Department of Government Efficiency. The company also has a reported robotaxi launch date in Austin, Texas.
Musk thanked President Trump on X Wednesday night, saying that his "scheduled time" for government work is ending.
Meanwhile, Tesla is expected to launch its robotaxi service in Austin on June 12, Bloomberg News reported, citing a source. Musk has said the kickoff would start in June. Further, the robotaxi launch is to be geofenced within part of Austin, with teleoperators involved.
Tesla shares fell 1.65% to 356.90 on Wednesday, holding above a 354.99 early entry. Tesla stock and Broadcom are on IBD Leaderboard. Broadcom stock also is on the IBD Big Cap 20.
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