Tech Earnings and Tariff Turmoil Propel U.S. Stocks as Investors Eye Next Moves

Nvidia Surge and Tariff Headlines Push Markets Higher

U.S. equities closed higher on May 29, 2025, as investor optimism was buoyed by a standout performance from Nvidia and a temporary legal block on key Trump-era tariffs. The S&P 500 ended the day at 5,912.17, climbing 0.4%. Alongside it, the Dow Jones Industrial Average rose 0.28%, and the Nasdaq Composite added 0.39%, extending a week of modest gains across major indices.

One of the day’s biggest catalysts was Nvidia’s earnings report, which revealed a 69% year-on-year revenue jump. The company’s stock soared 3.2% to close at $139.19, outperforming other major semiconductor names like Qualcomm and Broadcom. This result reassured investors that demand for AI hardware remains strong, and helped stabilize broader tech sentiment that had recently wavered due to macroeconomic concerns.

The other major driver was a ruling by the U.S. Court of International Trade, which found certain tariffs enacted under former President Donald Trump to be unlawful. While the Biden administration has vowed to appeal, the initial ruling gave markets a brief window of optimism, especially for multinational corporations relying on global supply chains. However, an appeals court quickly issued a stay on the ruling, reinstating the tariffs temporarily, and adding uncertainty for the coming weeks (Associated Press).

Investors Brace for Volatility Ahead of Key Data Releases

Looking ahead to the May 30 trading session, investors are likely to encounter mixed signals. On the one hand, Nvidia’s blowout quarter could carry over positive momentum in the tech sector, potentially lifting other chip and AI-related stocks. This optimism might support a further short-term rally in growth sectors.

On the other hand, the legal battle over tariffs is far from resolved. The temporary reinstatement of the tariffs by the U.S. Court of Appeals means companies and investors must still account for potential cost pressures and supply chain risks. This ongoing legal uncertainty could trigger cautious repositioning, especially among industrials and exporters sensitive to trade policy (MarketWatch).

Adding to the volatility are upcoming economic data releases including consumer confidence indices and durable goods orders. These metrics will offer fresh insight into consumer resilience and business investment trends, both critical for shaping Federal Reserve expectations going forward.

Short-Term Outlook: Mixed Catalysts and Cautious Optimism

With tech earnings offering strong tailwinds and macro-policy developments creating headwinds, markets are positioned for a potentially volatile end to the month. Traders will likely keep a close eye on Washington for any updates on the tariff appeals process, while also parsing economic data to gauge recession risks or inflation flare-ups.

For now, equity markets appear cautiously bullish—supported by strong corporate performance, yet fragile in the face of ongoing geopolitical and policy uncertainty.