Reuters reports that US stock indexes rose on Thursday after a federal court ruled to overturn most of Donald Trump’s tariffs, helping to boost global markets.

Nvidia results

Nvidia shares jumped 5% thanks to better-than-expected earnings, driven by significant purchases of AI chips ahead of new export restrictions to China. However, the company warned that these restrictions could reduce its sales by $8 billion in the current quarter.

Index dynamics

The Dow Jones index rose to 42,215, the S&P 500 added 23 points to 5,912, and the Nasdaq rose 173.41 points to 19,273.71. The Philadelphia Stock Exchange Semiconductor Index rose 1.4% thanks to Nvidia’s success.

Market movements

Of the 11 sectors in the S&P 500, eight showed growth, with information technology and consumer goods leading the way. Apple shares rose nearly 1% despite Trump’s threats of new tariffs, Tesla rose 2.2%, and Amazon rose 1.2%. On the other hand, Salesforce lost 5.4% despite an improved revenue forecast.

General trends

Canceling most of Trump’s tariffs, introduced in January, boosted investment activity. However, sector-specific tariffs, such as those on steel and automobiles, remained in place. The S&P 500 is only 3% below its February 19 all-time high, rebounding from a 19% drop in April thanks to easing trade tensions, strong corporate reports, and subdued inflation. May was a successful month for the S&P 500 and Nasdaq — it may be the best month since November 2023.

Recall that the global tariffs imposed by US President Donald Trump were ruled illegal and blocked by a federal trade court.

However, other judges from the Court of Appeals temporarily suspended the previous ruling, so the tariffs were reinstated. Markets have already rolled back slightly after this news.