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Economic Times
3 hours ago
- Business
- Economic Times
S&P 500 ends near flat but posts biggest monthly percentage gain since November 2023
The S&P 500 concluded a turbulent session with minimal change as President Trump's remarks on China caused market fluctuations. Despite initial losses triggered by trade concerns, positive earnings and inflation data contributed to the S&P 500's rebound, achieving its largest monthly gain since November 2023. Investors are closely monitoring tariff developments and anticipating potential Federal Reserve interest rate cuts. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads NEW YORK - The S&P 500 ended a volatile session little changed on Friday as U.S. President Donald Trump slammed China before sounding upbeat about reaching a trade deal , but the benchmark index tallied its biggest monthly increase since November Nasdaq also registered its biggest monthly percentage gain since November was a choppy month for stocks as Trump's erratic trade policies kept investors on edge, but his softening tariff stance, along with upbeat earnings and tame inflation data, helped the S&P 500 rebound from its April Friday, all three major stock indexes opened lower after Trumpaccused China on his Truth Social platform of breaching a trade agreement with the U.S. and issued a new veiled threat to get tougher with the market pared losses as Trump said on Friday afternoon he will speak to China's President Xi Jinping and hopefully work out their differences on trade and said the constant stream of tariff news is "don't know how to react to tariff" news at this point, said Jake Dollarhide, CEO of Longbow Asset Management in Tulsa, Oklahoma. "The news cycle is maddening."The Dow Jones Industrial Average rose 54.34 points, or 0.13%, to 42,270.07. The S&P 500 lost 0.48 points, or 0.01%, at 5,911.69 and the Nasdaq Composite fell 62.11 points, or 0.32%, to 19, S&P 500 also finished Friday with a weekly gain that lifted it less than 4% from its February all-time high. The benchmark index rose about 6.2% in May, while the Nasdaq surged 9.6% for the month."February, March and April was one of the worst three-month periods since COVID, so we needed some gains," Dollarhide the effective U.S. tariff on imports was 2% to 3% before Trump took office, it stands at about 15%, according to Oxford Research estimates. This would have been lowered to about 6% by a trade court ruling, but an appeals court's emergency stay has kept the higher rate in place for on Friday also digested data showing U.S. consumer spending increased 2.1% year-on-year in April after advancing 2.3% in March. The Federal Reserve tracks the PCE price measures for its 2% inflation maintained bets that the U.S. central bank would cut its target for short-term borrowing costs in the earnings front, shares of Ulta Beauty jumped 11.8% after the cosmetics retailer raised its annual profit forecast after beating quarterly issues outnumbered advancers by a 1.14-to-1 ratio on the NYSE. There were 94 new highs and 62 new lows on the the Nasdaq, 1,849 stocks rose and 2,651 fell as declining issues outnumbered advancers by a 1.43-to-1 on U.S. exchanges was 19.34 billion shares, compared with the roughly 18 billion average for the full session over the last 20 trading days.
Yahoo
12 hours ago
- Business
- Yahoo
Trump Explodes Over China Deal Breach -- Rare Earths and Tariffs Back on the Table
Just weeks after a fragile ceasefire in the trade dispute, President Trump reignited tensions with a scathing accusation. In a Friday post, he claimed China had TOTALLY VIOLATED the recent agreement hashed out in Geneva, adding, So much for being Mr. NICE GUY! No specifics were given, but markets didn't wait for clarityS&P 500 futures dipped 0.3% as investors braced for another round of tariff-driven volatility. The pressure point? Critical minerals. U.S. Trade Representative Jamieson Greer hinted Beijing may be throttling shipments of rare earths, essential to everything from EVs to fighter jets. We haven't seen the flow as they were supposed to be doing, Greer told CNBC. Add to that new U.S. export restrictions on chip design software and jet engine components, plus the revocation of some Chinese student visas, and it's clear the chessboard is shifting againjust not in the direction markets were hoping for. Tesla (NASDAQ:TSLA) and other companies tied to Chinese supply chains could feel the pinch if tensions escalate. Treasury Secretary Scott Bessent acknowledged that trade talks have stalled and floated the idea of a TrumpXi call to break the deadlock. That call hasn't happened. With minerals, chips, and even student visas now in the spotlight, the risk is no longer just more tariffsit's a broader decoupling that could weigh on earnings, supply chains, and investor confidence well beyond this quarter. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12 hours ago
- Business
- Yahoo
Trump Explodes Over China Deal Breach -- Rare Earths and Tariffs Back on the Table
Just weeks after a fragile ceasefire in the trade dispute, President Trump reignited tensions with a scathing accusation. In a Friday post, he claimed China had TOTALLY VIOLATED the recent agreement hashed out in Geneva, adding, So much for being Mr. NICE GUY! No specifics were given, but markets didn't wait for clarityS&P 500 futures dipped 0.3% as investors braced for another round of tariff-driven volatility. The pressure point? Critical minerals. U.S. Trade Representative Jamieson Greer hinted Beijing may be throttling shipments of rare earths, essential to everything from EVs to fighter jets. We haven't seen the flow as they were supposed to be doing, Greer told CNBC. Add to that new U.S. export restrictions on chip design software and jet engine components, plus the revocation of some Chinese student visas, and it's clear the chessboard is shifting againjust not in the direction markets were hoping for. Tesla (NASDAQ:TSLA) and other companies tied to Chinese supply chains could feel the pinch if tensions escalate. Treasury Secretary Scott Bessent acknowledged that trade talks have stalled and floated the idea of a TrumpXi call to break the deadlock. That call hasn't happened. With minerals, chips, and even student visas now in the spotlight, the risk is no longer just more tariffsit's a broader decoupling that could weigh on earnings, supply chains, and investor confidence well beyond this quarter. This article first appeared on GuruFocus.
Yahoo
15 hours ago
- Business
- Yahoo
3 Factors That Could Boost Wall Street ETFs Despite Tariff Uncertainty
U.S. stocks remained volatile as investors processed a renewed wave of tariff uncertainty. The turbulence followed a decision by a federal appeals court on May 29 to temporarily reinstate former President Trump's global tariffs. This move came just a day after a trade court had deemed many of the tariffs illegal. The temporary pause allows the appeals court time to fully review the case. The Trump administration is required to submit its legal briefings by June 9. In response to the appeals court's decision, the White House indicated it is ready to take the matter to the Supreme Court if necessary. Despite the tariff-related uncertainty, below we highlight a few factors that could boost Wall Street ETFs ahead. NVIDIA's recent market-pleasing earnings performance gave Wall Street renewed hope that major tech companies can weather the uncertainties surrounding Trump's trade measures, even as export restrictions create new challenges. While the tech sector is still recovering from a pullback in February—triggered in part by market reactions to low-cost AI DeepSeek—this hasn't derailed investor optimism. Instead, the pullback caused some valuation corrections and set the stage for renewed focus on U.S. tech leadership and AI investment. According to Bank of America, the current earnings cycle confirms that hyperscalers are continuing with their AI investment strategies, even if capex growth is moderating slightly (read: Why Big Tech ETFs Still Remain Great Bets). Retail participation has been a major force behind the renewed strength in Wall Street. Steve Sosnick, chief strategist at Interactive Brokers, told Yahoo Finance that their customers bought heavily during April. 'Buy the dip' has been working for them for the past few years. Since the market's most recent bottom on April 8, the S&P 500 has climbed nearly 19%. JPMorgan quantitative strategist Emma Wu reported that retail investors poured over $50 billion into U.S. equities from April 8 onward—surpassing the $46 billion seen between March and June 2020, as quoted on Yahoo Finance. The week following Trump's April 2 'Liberation Day' tariff announcement saw record dip-buying flows, including $3 billion in net purchases on April 3—the largest single-day retail buying total since VandaTrack began tracking such data in 2014. Total Q1 earnings for the 477 S&P 500 members that have reported results are up +11.4% from the same period last year on +4.4% higher revenues, with 74.2% beating EPS estimates and 62.9% beating revenue estimates, per Earnings Trend. However, trade tensions have weighed on estimates so far. Note that total S&P 500 earnings for the June quarter are expected to be up only +5.5% year over year on +3.8% higher revenues, with a broader and greater pressure on estimates relative to other recent periods. Q2 earnings estimates for 15 of the 16 Zacks sectors are down since the quarter got underway, with Aerospace being the only exception. The Tech sector's estimates are down since the start of the period, but they have notably stabilized in recent weeks. Given this backdrop, if the court ruling helps ease tariff tensions to some extent, the earnings outlook could improve considerably. Below we highlight a few exchange-traded fund (ETF) options that could be played currently. iShares U.S. Aerospace & Defense ETF ITA – Zacks Rank #1 (Strong Buy) The underlying Dow Jones U.S. Select Aerospace & Defense Index measures the performance of the aerospace and defense sector of the U.S. equity market. The fund charges 40 bps in fees (read: Boeing Soaring on Trump Bump: Time to Tap the ETFs?). SPDR NYSE Technology ETF XNTK – Zacks Rank #1 The underlying NYSE Technology Index is composed of 35 leading U.S.-listed technology-related companies. The fund charges 35 bps in fees. Vanguard High Dividend Yield ETFVYM – Zacks Rank #2 (Buy) The underlying FTSE High Dividend Yield Index which is consists of common stocks of companies that pay dividends that generally are higher than average. The fund charges 6 bps in fees and yields 2.88% annually. iShares Core S&P Total U.S. Stock Market ETF ITOT – Zacks Rank #2 The underlying S&P Total Market Index tracks the broad equity market, including large, mid, small, and micro-cap stocks. The fund charges 3 bps in fees and yields 1.27% annually. Roundhill TSLA WeeklyPay ETF TSW The Roundhill TSLA WeeklyPay ETF seeks to pay weekly distributions to shareholders while targeting enhanced returns corresponding to 120% of weekly performance of TSLAbase. The fund charges 99 bps in fees and yields 12.53% annually. Note that Elon Musk has recently stepped down from his role as a special government adviser. This move could help improve the public image of the struggling Tesla. Notably, Musk's political involvement has recently impacted Tesla's brand perception in key markets. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iShares U.S. Aerospace & Defense ETF (ITA): ETF Research Reports Vanguard High Dividend Yield ETF (VYM): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports SPDR NYSE Technology ETF (XNTK): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
Stock market today: Dow, Nasdaq, S&P 500 rise as investors cheer Nvidia earnings, weigh more tariff uncertainty
US stocks moved higher on Thursday as markets assessed Nvidia's (NVDA) earnings report as well as more tariff uncertainty. In late afternoon trade, a federal appeals court allowed President Trump's sweeping tariffs to temporarily stay in effect, a day after the US Court of International Trade blocked their implementation after deeming the method used to enact them "unlawful." That means Trump's tariffs will remain in effect for now. The benchmarkS&P 500 (^GSPC) and tech-heavy Nasdaq Composite (^IXIC) each climbed about 0.3%, while the Dow Jones Industrial Average (^DJI) was up around 0.2% amid debate over Trump's next move in trade policy. All three major averages had retreated from their highs of the day. Nvidia stock rallied about 3% after its first quarter revenue topped estimates. Investors appear to be looking past the AI chipmaker's warning that it expects to miss out on $8 billion in sales in the second quarter, thanks to US restrictions on exports to China. Overall, Nvidia's performance on Wednesday boosted hopes on Wall Street that Big Tech can weather Trump's far-reaching trade policy. Read more: The latest on Trump's tariffs Meanwhile, Best Buy (BBY) cut its full-year guidance citing economic uncertainty around those tariffs, sending its stock lower. Eyes are now on Costco's (COST) after-hours report, given the difficult position retailers find themselves in: Trump told Walmart to "eat" price hikes associated with new duties following its latest results. On the economic front, filings for unemployment aid jumped more than expected last week. And in a slight upgrade from the initial reading, the Commerce Department said GDP shrank at a 0.2% annualized pace in the first quarter. A federal appeals court has temporarily reinstated President Trump's global tariffs by pausing a lower court ruling that had blocked them. The decision, which came sooner than expected, means the tariffs will remain in effect for now. The US Court of Appeals for the Federal Circuit, which oversees the International Trade Court, granted the Trump administration's request for a temporary administrative stay. This gives the court time to review legal arguments and filings. The administration must submit its briefings by June 9, after which the court will determine the next steps. As Yahoo Finance legal reporter Alexis Keenan noted, Trump has broad authority to impose tariffs through various legal channels, including Sections 232 and 301. The administration had chosen to justify the tariffs under an emergency act, citing concerns such as immigration and drug trafficking — an argument the lower court rejected. Legal experts say it's unclear how the appeals court will ultimately rule, as another court might interpret the emergency authority in a different way. Long-term Treasury yields have climbed in recent weeks, driven by growing concerns over the trajectory of US debt as President Trump's proposed tax legislation advances to the Senate after clearing the House. New concerns emerged late Wednesday after a Manhattan-based trade court struck down a wide swath of Trump's tariffs, adding to uncertainty around how the administration will manage the deficit. "The tariffs the court struck down were likely to raise nearly $200 billion on an annual basis," Goldman Sachs said in a note to clients late Wednesday. That's "roughly the amount the fiscal package would increase the deficit next year." Yields ticked higher in the immediate aftermath of the news before falling slightly on Thursday. In afternoon trade, 10-year (^TNX) hovered near 4.43% while the 30-year (^TYX) traded around 4.94%. As bond markets digest the latest policy whipsaw, one strategist says investors may be underestimating just how actively the administration is working behind the scenes to manage long-term borrowing costs. Tim High, senior rates strategist at BNP Paribas, described the Trump team as "bond vigilant — a counterweight to the so-called bond vigilantes in the market," suggesting the administration is acutely aware of the risks that higher yields and a rising term premium pose to fiscal stability. High pointed to previous comments from Treasury Secretary Scott Bessent, who emphasized the administration is more focused on 10-year yields than on short-term Federal Reserve policy. That matters, he said, because longer-term rates, especially the 10-year, have a bigger impact on the real economy, shaping consumer borrowing costs like mortgage rates. Read more here. President Trump's trade plans ran into a stumbling block this week when a court blocked a wide swath of his tariffs. But he could bounce back quickly even if the White House plans to appeal the defeat don't pan out. That's because Congress has been handing its tariff powers over to the executive branch for decades, with an array of other authorities at the ready, especially from two laws passed in 1962 and 1974m if Trump needs to reimplement things like his "Liberation Day" tariffs by different means. "It's a setback [but] it doesn't mean that the president can't find other means or authorities to try to implement this policies, and it's also just the first step in litigation," Greta Peisch, a former Biden administration trade general counsel, now at law firm Wiley Rein, noted in a Yahoo Finance appearance Thursday morning. Read more here. Federal Reserve Chair Jerome Powell met with President Trump at the White House today, according to a release from the central bank. "At the President's invitation, Chair Powell met with the President today at the White House to discuss economic developments including for growth, employment, and inflation," the release said. "Chair Powell did not discuss his expectations for monetary policy, except to stress that the path of policy will depend entirely on incoming economic information and what that means for the outlook." Trump, who had been badgering Powell to cut interest rates over the past several months via his social media platform Truth Social, has yet to post about the meeting. Read more here. A US trade court decision that put at least a temporary pause on many of President Trump's wide-ranging tariffs isn't cooling Wall Street's fears over policy uncertainty. "It is not clear that this is a catalyst for a sustained new risk-on [trade]," Barclays global chairman of research Ajay Rajadhyaksha wrote in a note to clients while pointing out that lower tariffs would mean less revenue back to the US government. That could cause Trump's new tax bill to push the US deficit higher if it went into effect, exacerbating the recent rise in bond yields and potentially weighing on the equity market. Stock futures soared overnight on the news, but the equity market rally cooled off quickly with the S&P 500 up just 0.2% in early afternoon trading. The administration has already appealed the decision and strategists like Rajadhyaksha have pointed out that this could merely delay Trump's tariff rollout, not eliminate it. "Investors were hoping that tariff negotiations would largely be ironed out in the next couple of months, leaving the Administration free to focus far more on growth-positive policy including deregulation," Rajadhyaksha wrote. "At least optically, that entire process is now pushed back a few months." Read more here. Crude oil prices retreated on Thursday amid a looming decision due this weekend over the possibility of increased production from OPEC+ in July. West Texas Intermediate (CL=F) futures fell 1% to hover above $61 per barrel. Brent crude (BZ=F), the international benchmark, also traded above $63 per barrel. The Organization of the Petroleum Exporting Countries and its allies (OPEC+) will decide this weekend whether to raise output in July following increases already set for May and June. Wall Street anticipates the group will vote in favor of increasing supply by 411,000 barrels per day. Yahoo Finance's Claire Boston reports: Read more here. Nvidia (NVDA) The AI chip giant was the No. 1 trending ticker on Yahoo Finance on Thursday after beating expectations on revenue, but falling short on adjusted earnings per share (EPS) due to the impact of the ban on shipments of its H20 units to China. The company also said it expects to miss out on roughly $8 billion in sales of H20s in the second quarter. e.l.f. Beauty (ELF) Shares of the cosmetics company rose more than 20% on Thursday on the heels its quarterly results and $1 billion acquisition announcement of Rhode, a brand founded by Hailey Bieber. Best Buy (BBY) Best Buy shares tanked more than 7% on Thursday after the retailer reported mixed earnings and cut guidance due to the Trump administration's tariffs. Same-store sales fell 0.7% year over year while revenue fell 0.9% to $8.77 billion, missing Wall Street estimates. Adjusted earnings per share slid 4% to $1.15, beating estimates of $1.09. Read more about Best Buy earnings here. US stocks rose on Thursday in the wake of AI chip giant Nvidia's (NVDA) earnings report and a court ruling that threatened President Trump's tariff policy. The S&P 500 (^GSPC) gained about 0.8%. The Dow Jones Industrial Average (^DJI) moved up roughly 0.3%, while the Nasdaq Composite (^IXIC) climbed 1.4%. Tech stocks led the gains, with Nvidia jumping more than 5% following its quarterly report. Its earnings topped estimates, but the company warned of a second quarter revenue impact due to US restrictions on exports to China. Other "Magnificent Seven" stocks also rose, including Amazon (AMZN). Shares in Tesla (TSLA) put on 2% after CEO Elon Musk teased a June rollout of the EV maker's robotaxis and confirmed he was leaving his role in the Trump administration. On Wednesday evening, a panel of judges at the US Court of International Trade blocked Trump's global tariffs on the grounds that the president lacked the authority to issue them using emergency powers. The decision will likely be appealed by the Trump administration in federal court. Weekly filings for unemployment benefits moved higher last week while the number of Americans filing for unemployment insurance on an ongoing basis once again hit their highest level since November 2021 as the US labor market continues to show signs of slowing. Data from the Department of Labor released Thursday morning showed 240,000 initial jobless claims were filed in the week ending May 24, up from 226,000 the week prior and above economists' expectations for 230,000. Meanwhile, 1.919 million continuing claims were filed, up from 1.893 million the week prior and the highest level seen since November 2021. Economists see an increase in continuing claims as a sign that those out of work are taking longer to find new jobs. Tesla (TSLA) stock rose 2% in premarket trading after CEO Elon Musk teased the rollout of its robotaxis and confirmed he was leaving his role in government. Musk said the EV maker has been testing driverless Model Y cars in Austin, Texas, for the past several days. Previously, he said Tesla would begin testing by the end of June, per Reuters. The rollout is also expected to feature 10 to 20 cars to start, based on past comments. "A month ahead of schedule," Musk wrote on X. Also lifting shares was a confirmation from a White House official that Musk will no longer serve on the Department of Government Efficiency (DOGE). Musk's involvement in government was controversial for Tesla shareholders, many of whom felt his attention had become too divided. 'Back to spending 24/7 at work and sleeping in conference/server/factory rooms,' Musk said on Tuesday, adding that he 'must be super focused on 𝕏/xAI and Tesla (plus Starship launch next week), as we have critical technologies rolling out.' Read more here about Tesla's driverless cars and Musk's return to the office. Bloomberg News reports: Read more here. Salesforce (CRM) defied conventional thinking by raising its full-year guidance in the face of tariff headwinds late Wednesday, as it posted first quarter profit and revenue beats. But the software giant's stock is trading pretty much flat in Thursday's pre-market — a sign that analysts aren't that jazzed by its results. Yahoo Finance's Brian Sozzi reports on how Wall Street is reacting: Read more from Wall Street here. As a US trade court ruling upends President Trump's trade strategy, Yahoo Finance's Josh Schafer points out the rewards that awaited investors who snapped up tariff-bruised stocks. Read more here. Economic data: First quarter GDP; First quarter personal consumption; Initial jobless claims, (week ended May 24); Pending home sales (April) Earnings: American Eagle (AEO), Best Buy (BBY), Burlington Stores (BURL), Build-a-Bear Workshop (BBW), Costco (COST), Dell (DELL), Foot Locker (FL), Hormel Foods (HRL), Gap (GAP), Marvell Technology (MRVL), Ulta (ULTA), Zscaler (ZS) The United States Court of International Trade has ruled Trump tariffs "unlawful." Meanwhile, Nvidia earnings lifted Wall Street, even as the chipmaker flagged risks relating to AI chip controls. Here are some of the biggest stories you may have missed overnight and early this morning: Trump's tariffs in limbo after trade court's stunning rebuke Nvidia pops, CEO warns US chip curbs boost China rivals Court rules Trump doesn't have authority to impose tariffs Buying the dip hasn't paid off this much in 30 years Nvidia gets a pass after earnings miss: What Wall Street is saying Real winner in GameStop's bitcoin pivot is Strategy Goldman: Trump can offset tariff ruling with other tools Microsoft shares go from laggard to leader as AI growth improves Yahoo Finance's Brian Sozzi reports: Read more here on what Wall Street is saying about Nvidia's quarter. Shares in HP Inc. (HPQ) fell by 8% on Thursday in premarket trading after the company's profit outlook missed estimates and it cut the annual earnings forecast, citing a weaker economy and continuing costs from US tariffs on goods from China. Bloomberg News reports: Read more here. Markets may be celebrating the latest turn in the tariffs saga, but the US trade court's block isn't definitive — and that means there's still cause for concern, some analysts say. Reuters reports: Read more here. A landmark decision by the US Court of International Trade has deemed many of President Trump's tariffs 'unlawful' and sent markets into a global upturn. Reuters reports: Read more here. A federal appeals court has temporarily reinstated President Trump's global tariffs by pausing a lower court ruling that had blocked them. The decision, which came sooner than expected, means the tariffs will remain in effect for now. The US Court of Appeals for the Federal Circuit, which oversees the International Trade Court, granted the Trump administration's request for a temporary administrative stay. This gives the court time to review legal arguments and filings. The administration must submit its briefings by June 9, after which the court will determine the next steps. As Yahoo Finance legal reporter Alexis Keenan noted, Trump has broad authority to impose tariffs through various legal channels, including Sections 232 and 301. The administration had chosen to justify the tariffs under an emergency act, citing concerns such as immigration and drug trafficking — an argument the lower court rejected. Legal experts say it's unclear how the appeals court will ultimately rule, as another court might interpret the emergency authority in a different way. Long-term Treasury yields have climbed in recent weeks, driven by growing concerns over the trajectory of US debt as President Trump's proposed tax legislation advances to the Senate after clearing the House. New concerns emerged late Wednesday after a Manhattan-based trade court struck down a wide swath of Trump's tariffs, adding to uncertainty around how the administration will manage the deficit. "The tariffs the court struck down were likely to raise nearly $200 billion on an annual basis," Goldman Sachs said in a note to clients late Wednesday. That's "roughly the amount the fiscal package would increase the deficit next year." Yields ticked higher in the immediate aftermath of the news before falling slightly on Thursday. In afternoon trade, 10-year (^TNX) hovered near 4.43% while the 30-year (^TYX) traded around 4.94%. As bond markets digest the latest policy whipsaw, one strategist says investors may be underestimating just how actively the administration is working behind the scenes to manage long-term borrowing costs. Tim High, senior rates strategist at BNP Paribas, described the Trump team as "bond vigilant — a counterweight to the so-called bond vigilantes in the market," suggesting the administration is acutely aware of the risks that higher yields and a rising term premium pose to fiscal stability. High pointed to previous comments from Treasury Secretary Scott Bessent, who emphasized the administration is more focused on 10-year yields than on short-term Federal Reserve policy. That matters, he said, because longer-term rates, especially the 10-year, have a bigger impact on the real economy, shaping consumer borrowing costs like mortgage rates. Read more here. President Trump's trade plans ran into a stumbling block this week when a court blocked a wide swath of his tariffs. But he could bounce back quickly even if the White House plans to appeal the defeat don't pan out. That's because Congress has been handing its tariff powers over to the executive branch for decades, with an array of other authorities at the ready, especially from two laws passed in 1962 and 1974m if Trump needs to reimplement things like his "Liberation Day" tariffs by different means. "It's a setback [but] it doesn't mean that the president can't find other means or authorities to try to implement this policies, and it's also just the first step in litigation," Greta Peisch, a former Biden administration trade general counsel, now at law firm Wiley Rein, noted in a Yahoo Finance appearance Thursday morning. Read more here. Federal Reserve Chair Jerome Powell met with President Trump at the White House today, according to a release from the central bank. "At the President's invitation, Chair Powell met with the President today at the White House to discuss economic developments including for growth, employment, and inflation," the release said. "Chair Powell did not discuss his expectations for monetary policy, except to stress that the path of policy will depend entirely on incoming economic information and what that means for the outlook." Trump, who had been badgering Powell to cut interest rates over the past several months via his social media platform Truth Social, has yet to post about the meeting. Read more here. A US trade court decision that put at least a temporary pause on many of President Trump's wide-ranging tariffs isn't cooling Wall Street's fears over policy uncertainty. "It is not clear that this is a catalyst for a sustained new risk-on [trade]," Barclays global chairman of research Ajay Rajadhyaksha wrote in a note to clients while pointing out that lower tariffs would mean less revenue back to the US government. That could cause Trump's new tax bill to push the US deficit higher if it went into effect, exacerbating the recent rise in bond yields and potentially weighing on the equity market. Stock futures soared overnight on the news, but the equity market rally cooled off quickly with the S&P 500 up just 0.2% in early afternoon trading. The administration has already appealed the decision and strategists like Rajadhyaksha have pointed out that this could merely delay Trump's tariff rollout, not eliminate it. "Investors were hoping that tariff negotiations would largely be ironed out in the next couple of months, leaving the Administration free to focus far more on growth-positive policy including deregulation," Rajadhyaksha wrote. "At least optically, that entire process is now pushed back a few months." Read more here. Crude oil prices retreated on Thursday amid a looming decision due this weekend over the possibility of increased production from OPEC+ in July. West Texas Intermediate (CL=F) futures fell 1% to hover above $61 per barrel. Brent crude (BZ=F), the international benchmark, also traded above $63 per barrel. The Organization of the Petroleum Exporting Countries and its allies (OPEC+) will decide this weekend whether to raise output in July following increases already set for May and June. Wall Street anticipates the group will vote in favor of increasing supply by 411,000 barrels per day. Yahoo Finance's Claire Boston reports: Read more here. Nvidia (NVDA) The AI chip giant was the No. 1 trending ticker on Yahoo Finance on Thursday after beating expectations on revenue, but falling short on adjusted earnings per share (EPS) due to the impact of the ban on shipments of its H20 units to China. The company also said it expects to miss out on roughly $8 billion in sales of H20s in the second quarter. e.l.f. Beauty (ELF) Shares of the cosmetics company rose more than 20% on Thursday on the heels its quarterly results and $1 billion acquisition announcement of Rhode, a brand founded by Hailey Bieber. Best Buy (BBY) Best Buy shares tanked more than 7% on Thursday after the retailer reported mixed earnings and cut guidance due to the Trump administration's tariffs. Same-store sales fell 0.7% year over year while revenue fell 0.9% to $8.77 billion, missing Wall Street estimates. Adjusted earnings per share slid 4% to $1.15, beating estimates of $1.09. Read more about Best Buy earnings here. US stocks rose on Thursday in the wake of AI chip giant Nvidia's (NVDA) earnings report and a court ruling that threatened President Trump's tariff policy. The S&P 500 (^GSPC) gained about 0.8%. The Dow Jones Industrial Average (^DJI) moved up roughly 0.3%, while the Nasdaq Composite (^IXIC) climbed 1.4%. Tech stocks led the gains, with Nvidia jumping more than 5% following its quarterly report. Its earnings topped estimates, but the company warned of a second quarter revenue impact due to US restrictions on exports to China. Other "Magnificent Seven" stocks also rose, including Amazon (AMZN). Shares in Tesla (TSLA) put on 2% after CEO Elon Musk teased a June rollout of the EV maker's robotaxis and confirmed he was leaving his role in the Trump administration. On Wednesday evening, a panel of judges at the US Court of International Trade blocked Trump's global tariffs on the grounds that the president lacked the authority to issue them using emergency powers. The decision will likely be appealed by the Trump administration in federal court. Weekly filings for unemployment benefits moved higher last week while the number of Americans filing for unemployment insurance on an ongoing basis once again hit their highest level since November 2021 as the US labor market continues to show signs of slowing. Data from the Department of Labor released Thursday morning showed 240,000 initial jobless claims were filed in the week ending May 24, up from 226,000 the week prior and above economists' expectations for 230,000. Meanwhile, 1.919 million continuing claims were filed, up from 1.893 million the week prior and the highest level seen since November 2021. Economists see an increase in continuing claims as a sign that those out of work are taking longer to find new jobs. Tesla (TSLA) stock rose 2% in premarket trading after CEO Elon Musk teased the rollout of its robotaxis and confirmed he was leaving his role in government. Musk said the EV maker has been testing driverless Model Y cars in Austin, Texas, for the past several days. Previously, he said Tesla would begin testing by the end of June, per Reuters. The rollout is also expected to feature 10 to 20 cars to start, based on past comments. "A month ahead of schedule," Musk wrote on X. Also lifting shares was a confirmation from a White House official that Musk will no longer serve on the Department of Government Efficiency (DOGE). Musk's involvement in government was controversial for Tesla shareholders, many of whom felt his attention had become too divided. 'Back to spending 24/7 at work and sleeping in conference/server/factory rooms,' Musk said on Tuesday, adding that he 'must be super focused on 𝕏/xAI and Tesla (plus Starship launch next week), as we have critical technologies rolling out.' Read more here about Tesla's driverless cars and Musk's return to the office. Bloomberg News reports: Read more here. Salesforce (CRM) defied conventional thinking by raising its full-year guidance in the face of tariff headwinds late Wednesday, as it posted first quarter profit and revenue beats. But the software giant's stock is trading pretty much flat in Thursday's pre-market — a sign that analysts aren't that jazzed by its results. Yahoo Finance's Brian Sozzi reports on how Wall Street is reacting: Read more from Wall Street here. As a US trade court ruling upends President Trump's trade strategy, Yahoo Finance's Josh Schafer points out the rewards that awaited investors who snapped up tariff-bruised stocks. Read more here. Economic data: First quarter GDP; First quarter personal consumption; Initial jobless claims, (week ended May 24); Pending home sales (April) Earnings: American Eagle (AEO), Best Buy (BBY), Burlington Stores (BURL), Build-a-Bear Workshop (BBW), Costco (COST), Dell (DELL), Foot Locker (FL), Hormel Foods (HRL), Gap (GAP), Marvell Technology (MRVL), Ulta (ULTA), Zscaler (ZS) The United States Court of International Trade has ruled Trump tariffs "unlawful." Meanwhile, Nvidia earnings lifted Wall Street, even as the chipmaker flagged risks relating to AI chip controls. Here are some of the biggest stories you may have missed overnight and early this morning: Trump's tariffs in limbo after trade court's stunning rebuke Nvidia pops, CEO warns US chip curbs boost China rivals Court rules Trump doesn't have authority to impose tariffs Buying the dip hasn't paid off this much in 30 years Nvidia gets a pass after earnings miss: What Wall Street is saying Real winner in GameStop's bitcoin pivot is Strategy Goldman: Trump can offset tariff ruling with other tools Microsoft shares go from laggard to leader as AI growth improves Yahoo Finance's Brian Sozzi reports: Read more here on what Wall Street is saying about Nvidia's quarter. Shares in HP Inc. (HPQ) fell by 8% on Thursday in premarket trading after the company's profit outlook missed estimates and it cut the annual earnings forecast, citing a weaker economy and continuing costs from US tariffs on goods from China. Bloomberg News reports: Read more here. Markets may be celebrating the latest turn in the tariffs saga, but the US trade court's block isn't definitive — and that means there's still cause for concern, some analysts say. Reuters reports: Read more here. A landmark decision by the US Court of International Trade has deemed many of President Trump's tariffs 'unlawful' and sent markets into a global upturn. Reuters reports: Read more here.
