Wall Street Surges as Nvidia Leads AI Revival and Trump Pauses Tariff

AI-Fueled Momentum Drives U.S. Stocks

Wall Street witnessed a late-session surge this week after Nvidia’s Q1 earnings handily beat analyst expectations, further igniting the artificial intelligence rally that has dominated 2025. The chipmaker’s bullish forecast renewed confidence in the tech sector, driving up the S&P 500 and Nasdaq indexes.

Adding fuel to the rally, former President Donald Trump delayed his proposed 50% tariffs on European Union imports. This political maneuver helped soothe market fears of a renewed trade war, providing relief to multinational corporations and consumer-focused businesses reliant on global supply chains.

Despite the bullish energy, concerns lingered from the Federal Reserve, which recently cautioned that the U.S. may risk losing its global financial safe haven status due to policy volatility. At the same time, large retailers like Macy’s and Walmart confirmed price hikes in response to earlier tariff implementations, hinting at a longer-term impact on consumer spending.

Bloomberg’s market live update provides detailed insights on intraday performance and economic sentiment shifts following Nvidia’s report.

International Markets React to Trade Softening and Positive Earnings

Abroad, equity markets responded positively to the reduction in trade hostility. The United States and China agreed to a 90-day tariff reduction period, signaling a temporary détente and opening room for negotiations. While not a full resolution, this pause was well-received by investors in both regions.

In Europe, indexes remained stable amid cautious optimism. Although tensions between the EU and U.S. remain unresolved, the decision to delay immediate tariff escalation led to upward revisions in near-term market outlooks.

Meanwhile, Indian equities extended their bullish streak. Both the Sensex and Nifty 50 reached record highs this week, driven by strong earnings from tech and consumer goods sectors. The Indian market also benefited from capital inflows as investors seek growth in emerging economies amid global uncertainty.

S&P Global’s outlook outlines the global impact of trade policies and economic performance projections across major economies.

As May 2025 closes, markets continue to move in response to policy signals, corporate earnings, and central bank messaging. The coming weeks will be crucial in determining whether this AI-led rally is sustainable or just another bounce in a volatile year.