US Stock Indices Rise as Nvidia and Court Ruling Boost Markets

The S&P 500 Index ($SPX) closed up +0.40% on Thursday, while the Dow Jones Industrials Index ($DOWI) rose +0.28%, and the Nasdaq 100 Index ($IUXX) increased by +0.21%. June E-mini S&P futures (ESM25) also showed a gain of +0.31%, and June E-mini Nasdaq futures (NQM25) rose by +0.10%.

On Thursday, stock markets closed higher, with the S&P 500 hitting a 1-week high and the Nasdaq 100 reaching a 3-month high. Nvidia’s shares surged over +3% following strong earnings results, and CEO Huang forecasted “exponential growth” in the AI computing sector. Additionally, a court ruling that blocked certain import tariffs from President Trump contributed to the stock market’s boost.

The US Court of International Trade ruled unanimously that President Trump improperly invoked emergency powers for tariffs on global goods, including a 10% flat tariff and elevated rates on specific countries. This ruling does not affect tariffs imposed under other authorities, such as those on steel or automobiles. The court has given the administration 10 days to comply with its order.

Stocks sustained their gains as US economic reports lowered Treasury note yields. The Q1 core PCE price index was revised down, weekly jobless claims rose more than anticipated, and April pending home sales showed their largest decline in over 2-1/2 years, signaling dovish conditions for Federal Reserve policy. Comments from Chicago Fed President Goolsbee suggested a resolution in US trade policy might allow the Fed to cut interest rates. The 10-year T-note yield fell by -5 basis points to 4.43%.

Later in the day, stocks gave up some gains when a federal appeals court temporarily paused the Court of International Trade’s decision on Trump’s tariffs while reviewing the matter. The administration indicated it would appeal to the Supreme Court if needed.

Initial unemployment claims in the US rose by +14,000 to 340,000, surpassing expectations of 230,000. Continuing claims unexpectedly increased +22,000 to 1.919 million, a 3-1/2 year high, while analysts had predicted a decline to 1.893 million.

US Q1 GDP was adjusted upward to -0.2% from -0.3%. The April core PCE price index was revised down to 3.4% from 3.5%.

Pending home sales in April fell -6.3% month-over-month, much worse than the expected -1.0% and marking the steepest decline in more than 2-1/2 years.

Market analysts are currently pricing in a 6% chance of a -25 basis point rate cut at the next FOMC meeting on June 17-18. Upcoming reports on personal spending, personal income, and the core PCE price index could further impact market sentiment.

The Q1 earnings reporting season is nearing its conclusion, with over 90% of S&P 500 companies reporting results. So far, 77% have exceeded estimates—the highest percentage since Q2 2024. Earnings growth for Q1 stands at +13.1%, outpacing the initial expectation of +6.6%. Full-year 2025 corporate profit projections for the S&P 500 are estimated to rise by +9.4%, a decline from the earlier forecast of +12.5%.

Overseas markets had mixed results on Thursday. The Euro Stoxx 50 dropped -0.14%, while China’s Shanghai Composite increased by +0.70%. Japan’s Nikkei 225 rose +1.88%, reaching a 2-week high.

Interest Rates

June 10-year T-notes closed up +13.5 ticks, with the 10-year yield decreasing -4.9 basis points to 4.428%. T-notes gained from Fed-friendly economic news and a notable decline in inflation expectations, reflected by a 2-week low in the 10-year breakeven inflation rate of 2.312%.

Dovish comments from Chicago Fed President Goolsbee, suggesting possible rate cuts if trade policy resolves, further supported T-notes. Strong demand also characterized the Treasury’s $44 billion auction of 7-year T-notes, which had a bid-to-cover ratio of 2.69, exceeding the 10-auction average of 2.63.

Initially, T-notes dropped due to reduced safe-haven demand as stocks rallied following a US trade court ruling against Trump’s tariffs. European government bond yields decreased, with the 10-year German bund yield dropping to a 3-week low of 2.508% and the 10-year UK gilt yield falling -7.9 basis points to 4.648%.

Swaps indicate a 99% probability of a -25 basis point rate cut by the ECB at its meeting on June 5.

US Stock Movers

Nvidia (NVDA) shares rose more than +3% after reporting Q1 revenue of $44.06 billion, exceeding the consensus of $43.29 billion.

Nordson (NDSN) gained over +6% after reporting Q2 sales of $682.9 million, above the expected $674.8 million, and forecasting Q3 sales of $710 million to $750 million.

Elf Beauty (ELF) surged more than +22% following a Q4 net sales report of $332.6 million, surpassing the consensus of $327.4 million, and an acquisition of Hailey Bieber’s Rhode beauty brand for $800 million.

Veeva Systems (VEEV) increased by more than +18% after reporting Q1 revenue of $759.0 million, above expectations, and raising its 2026 revenue forecast significantly.

Boeing (BA) led Dow gainers with a +3% rise after announcing it would increase 737 jetliner output to 47 per month by year’s end.

Agilent (A) rose over +2% after reporting Q2 net revenue of $1.67 billion, beating estimates, and raising its full-year forecast to between $6.73 billion and $6.81 billion.