Dow Jones futures rose early Thursday, along with S&P 500 futures and especially Nasdaq futures, on a federal court ruling against Trump tariffs as well as strong Nvidia earnings. But they're coming off highs.
Nvidia stock signaled a breakout with AI peers Broadcom, Taiwan Semiconductor also rising around buy points. But a variety of stocks flashed buy signals on the two pieces of big news.
Fellow Dow Jones giant Salesforce.com also reported, along with Veeva Systems, Nutanix and Pure Storage.
Tesla rose overnight as CEO Elon Musk leaves DOGE and on a report that its Austin robotaxi launch will start June 12.
The stock market rally fell modestly Wednesday, but holding the bulk of Tuesday's gains.
Dow Jones Futures Today
Dow Jones futures rose 0.25% vs. fair value, but well off its Wednesday night highs even with Nvidia a big Dow component. S&P 500 futures climbed 0.8% and Nasdaq 100 futures jumped 1.3%, also significantly paring overnight gains.
The 10-year Treasury yield edged up to 4.5%. Crude oil futures rose slightly.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Court Rules Trump Tariffs 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 says it will appeal via federal court.
President 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 Section 232 authority.
Nvidia Earnings
Nvidia earnings topped views amid booming data center sales. The AI chip giant guided slightly lower on Q2 revenue, reflecting a loss of $8 billion in sales of H20 chips that the U.S. government blocked from selling to China.
Nvidia stock jumped in overnight trade, signaling a move above a 137.40 handle buy point. NVDA stock fell 0.5% to 134.81 on Wednesday, giving up slim intraday gains as the chip-design software export curbs suggest a hardening U.S. stance on chip technology generally.
Broadcom stock and Taiwan Semiconductor stock rose modestly in extended action. AVGO stock had closed in buy range while TSM dipped just below its handle entry.
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Stock Market Rally
The stock market rally fell modestly heading into Nvidia earnings following Tuesday's strong gains.
The Financial Times reported Wednesday afternoon that the Trump administration has ordered chip-design software makers to stop selling to China. Cadence Design Systems and Synopsys tumbled 10.7% and 9.6%, respectively. Both bounced modestly overnight as Synopsys topped EPS views.
The Dow Jones Industrial Average fell 0.6% in Wednesday's stock market trading after hitting resistance at the 200-day line. The S&P 500 index also lost 0.6%. The Nasdaq composite declined 0.5% after briefly hitting a three-month high. The small-cap Russell 2000 tumbled 1.1%.
The Invesco S&P 500 Equal Weight ETF sank 0.85%, back below the 200-day.
U.S. crude oil prices rose 1.6% to $61.84 a barrel.
The 10-year Treasury yield rose five basis points to 4.48% after falling 16 basis points over the prior three sessions.
Growth ETFs
The Innovator IBD 50 ETF dipped 0.3%. The iShares Expanded Tech-Software Sector ETF slipped 0.7%%. Salesforce is a top-five IGV holding, with Nutanix also in the ETF. The VanEck Vectors Semiconductor ETF declined 1.1%. Nvidia, Broadcom and Taiwan Semiconductor are huge SMH holdings.
Cadence Design and Synopsys stock are in both IGV and SMH.
ARK Innovation ETF shed 1.8% and ARK Genomics ETF lost 2%. Tesla stock is the largest holding across Ark Invest's ETFs.
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Other Earnings
Salesforce earnings slightly beat Q1 views, with the software giant guiding up on Q2 and full-year revenue. CRM stock edged lower in overnight trade. Salesforce stock closed down 0.4%, just above the 50-day line but below the 21-day, with the 200-day above that.
Pure Storage, Nutanix and Veeva Systems all beat views.
Pure Storage stock was flat early Thursday, just holding the 200-day line and close to a buy point. Nutanix stock rose slightly to just above a buy point. Veeva stock surged, signaling a breakout.
Tesla Robotaxi Launch
Tesla will launch its robotaxi service in Austin on June 12, Bloomberg News reported around Wednesday's market close, citing a source. CEO Elon Musk has said the kickoff would start sometime next month.
Tesla tested a Model Y with no one in the driver's seat for the first time this week, according to the report.
The robotaxi launch will be geofenced within a portion of Austin, with teleoperators involved.
Also Musk said on X that his "scheduled time" for government work is ending, thanking President Trump.
Tesla stock rose modestly in premarket trade.. Shares fell 1.65% to 356.90 on Wednesday, holding above a 354.99 early entry.
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What To Do Now
The stock market rally took a breather after a powerful session. Not a lot of stocks flashed buy signals Wednesday, though several remained in buy range.
The market, especially the broader AI theme, may takes its cue Thursday from Nvidia earnings.
Work on your watchlists.
Tesla stock and Broadcom are on IBD Leaderboard. Cadence Design stock is on IBD Long-Term Leaders. Broadcom stock is on the IBD Big Cap 20.
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