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Market Commentary - Foreign Markets

Dow gains 117 points as Nvidia jumps 3.2% on strong earnings; court halts Trump's reciprocal tariffs; biotech leads sector gains while bond yields fall.

Wall Street Rises on Nvidia Earnings; Court Blocks Trump's Tariff Move

30-May-2025, 09:58
The Dow rose 117.03 points (0.3%) to 42,215.73, the Nasdaq climbed 74.93 points (0.4%) to 19,175.87 and the S&P 500 increased 23.62 points (0.4%) to 5,912.17.

The Federal court blocked President Trump's reciprocal tariffs on imports, ruling he overstepped his authority under emergency economic powers. The Court of International Trade stated the tariffs exceeded what the IEEPA allows and dismissed related drug trafficking justifications. The Trump administration appealed, and a higher court temporarily paused the ruling the same day.

NVIDIA's earnings received a positive reaction which also contributed to initial strength on Wall Street, with the AI darling jumping by 3.2% on the day. The jump by shares of Nvidia came after the company reported fiscal first quarter results that exceeded analyst estimates on both the top and bottom lines. Buying interest waned over the course of the session, as lingering uncertainty about trade continued to hang over the markets. Broader markets performed satisfactory leading to modest moves by most of the major sectors.

Biotechnology stocks moved upwards, with the NYSE Arca Biotechnology Index climbing by 1.2%. Oil producer, healthcare and commercial real estate stocks saw some strength while computer hardware and networking stocks moved to the downside.

Asia-Pacific stocks moved mostly higher. Japan's Nikkei 225 Index surged by 1.9%, while China's Shanghai Composite Index climbed by 0.7%. The major European markets moved downwards while the German DAX Index fell by 0.4% on the day, the U.K.'s FTSE 100 Index and the French CAC 40 Index both edged down by 0.1%.

In the bond market, treasuries moved higher following the pullback seen in the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, slid 5.3 bps to 4.42%.