30-05-2025
Stock Market News Review: SPY, QQQ Close Higher as Investors Brace for Tariff Battle in Court
Both the S&P 500 (SPX) and Nasdaq 100 (NDX) opened the Thursday trading session well in the green after the U.S. International Court of Trade (CIT) ruled that President Trump's reciprocal tariffs breached his limit of power, putting a halt to many of the duties. In addition, Nvidia (NVDA), a major component within both indexes, reported its earnings with a double beat on EPS and revenue, finishing the day with a 3.25% gain.
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Still, the Trump administration promised to appeal the CIT's decision. Near the market close, the U.S. Appeals Court for the Federal Circuit ruled to temporarily reinstate the tariffs while it 'considers the motions papers.' It's likely that the tariff drama is far from over, erasing the fleeting relief provided by the CIT's ruling.
Trump has several legal options to fully reinstate the tariffs, such as Section 232 of the Trade Expansion Act, which provides him with the power to impose restrictions on imports that are deemed a threat to national security. He had originally cited the International Emergency Economic Powers Act (IEEPA) as the legal authority for his reciprocal tariffs, which allows the President to regulate international trade during times of national emergencies.
Trump also had two key meetings today. The first was a phone call with Japan's Prime Minister, Shigeru Ishiba. The call, which lasted about 25 minutes, didn't result in any material results, although the two sides discussed trade, diplomacy, and job creation through investments. The call precedes top trade representatives from Japan arriving in Washington on Friday.
The President's second meeting was with Fed Chair Jerome Powell in the White House, where the pair discussed, unemployment, inflation, and interest rates. '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,' said the Fed. The central bank added that its monetary policy decisions will remain unbiased from politics.
Finally, the U.S. Bureau of Economic Analysis (BEA) revised its first quarter gross domestic product (GDP) estimate to -0.2% from -0.3%, citing increased customer spending and exports, which were partially offset by rising imports and lower government spending.
The S&P 500 ended the day with a 0.40% gain while the Nasdaq 100 rose by 0.21%.
