US markets close green as Trump tariff drama muddies outlook

U.S. stocks rose Thursday, with the S&P 500 up 0.4%, after Nvidia’s strong first-quarter earnings lifted sentiment. 

However, gains were tempered by renewed uncertainty over President Donald Trump’s tariff policy following conflicting court decisions.

The tech-heavy Nasdaq Composite also climbed 0.39%, while the Dow Jones Industrial Average added 127 points, or 0.3%, despite a 3.4% drop in Salesforce after weak earnings. Earlier in the session, all three indexes had traded significantly higher before retreating on fresh trade developments.

A federal appeals court reinstated Trump’s tariffs on the European Union just hours after the U.S. Court of International Trade ruled them unlawful. The administration is expected to request a Supreme Court pause on the ruling as early as Friday.

Investors remain wary as Trump’s fluctuating trade stance, particularly regarding the “reciprocal” tariff policy, adds to concerns about inflation. Several companies, including Best Buy, cited the tariffs as factors behind weaker forecasts.

Good day for Nvidia

Nvidia helped limit broader market losses. Its shares jumped nearly 3% after it reported 73% year-over-year growth in its data center business and exceeded expectations on both revenue and earnings. 

Though it warned of an $8 billion hit in the next quarter due to U.S. export restrictions to China, investors shrugged it off, focusing instead on strong AI momentum.

Despite the trade-policy headwinds, all major indexes are poised to finish the week and month in the green. 

The S&P 500 is up 6% for May, the Dow 3.5%, and the Nasdaq nearly 10%. Markets are now looking ahead to Costco’s earnings and further White House moves on tariffs.