U.S. Stock Markets Rise Following Ruling Against Trump Tariffs

The S&P 500 Index ($SPX) (SPY) increased by +0.66%, the Dow Jones Industrials Index ($DOWI) (DIA) rose +0.17%, and the Nasdaq 100 Index ($IUXX) (QQQ) gained +0.85%. June E-mini S&P futures (ESM25) are up +0.61%, and June E-mini Nasdaq futures (NQM25) rose +0.78%.

Today, stock indexes are climbing, with the S&P 500 reaching a 1-week high and the Nasdaq 100 hitting a 3-month high. Growth followed a court ruling that blocked several of President Trump’s import tariffs. Additionally, AI and chip stocks are buoyed after Nvidia reported strong earnings and CEO Huang forecasted “exponential growth” in the AI computing market.

Impact of Court Ruling on Tariffs

Global stock markets surged today after the U.S. Court of International Trade unanimously ruled that President Trump improperly used an emergency declaration to justify his “Liberation Day” tariffs. This ruling affects Trump’s global 10% tariff and elevated rates on certain countries, but does not impact tariffs imposed under other authorities, such as Section 232 and Section 301 tariffs which cover steel, aluminum, and automobiles. The court provided the administration 10 days to implement this ruling.

Economic Indicators and Market Reactions

Stocks maintained gains after U.S. economic data led to lower Treasury note yields. The Q1 core PCE price index was revised downwards, while weekly jobless claims rose more than expected, both seen as dovish signals for Fed policy. The 10-year T-note yield decreased by -3 basis points to 4.45%.

Weekly initial unemployment claims increased by +14,000 to 340,000, exceeding estimates of 230,000. Continuing claims unexpectedly rose by +22,000 to a 3-1/2 year high of 1.919 million, against predictions of a fall to 1.893 million.

U.S. Q1 GDP was revised upward to -0.2% (quarterly annualized) from -0.3%. The Q1 core PCE price index was revised lower to +3.4% from +3.5%.

Currently, markets are pricing a 2% chance of a -25 basis point rate cut at the next FOMC meeting on June 17-18. Attention this week will be on any new tariff updates or potential trade deals. Today’s pending home sales for April are predicted to decline by -1.0% month-over-month. Expected reports on Friday include April personal spending growth of +0.2% and April personal income growth of +0.3%. The April core PCE price index, the Fed’s preferred measure of inflation, is anticipated to rise +0.1% month-over-month and +2.5% year-over-year. The University of Michigan’s May consumer sentiment index is expected to be revised upward by +0.2 points to 51.0.

Reporting for Q1 is concluding, with over 90% of S&P 500 companies reporting results. Of those, 77% surpassed estimates, marking the highest percentage since Q2 of 2024. Q1 earnings growth stands at +13.1%, surpassing the expected +6.6%. Full-year 2025 corporate profit forecasts for the S&P 500 are now at +9.4%, revised down from +12.5% in early January.

Overseas Market Movement

International stock markets are also showing gains today. The Euro Stoxx 50 is up +0.29%. China’s Shanghai Composite rose +0.70%, and Japan’s Nikkei 225 closed up +1.88%, reaching a 2-week high.

Interest Rates and Treasury Notes

June 10-year T-notes (ZNM25) rose by +4 ticks today. The 10-year T-note yield fell by -2.6 basis points to 4.452%. T-note prices benefited from the revised core PCE index and the higher-than-expected jobless claims, both seen as dovish indicators for Fed policy. Lower inflation expectations supported T-note prices, with the 10-year breakeven inflation rate dropping to a 2-week low of 2.32%.

Initial movement for T-notes was downward due to reduced safe-haven demand as stocks surged following the trade ruling. Supply pressures from the Treasury’s planned $44 billion auction of 7-year T-notes added to downward pressure.

European government bond yields edged downwards, with the 10-year German bund yield going down -2.9 basis points to 2.525% and the 10-year UK gilt yield reducing by -5.1 basis points to 4.676%.

Swaps indicate a 100% chance of a -25 basis point rate cut by the ECB at the June 5 policy meeting.

U.S. Stock Movers

Semiconductor stocks surged today, led by a +5% increase in Nvidia (NVDA) after reporting Q1 revenue of $44.06 billion, above the consensus of $43.29 billion. Other gainers included Microchip Technology (MCHP) and GlobalFoundries (GFS), both up over +2%. ON Semiconductor (ON), Micron Technology (MU), and Marvell Technology (MRVL) also saw gains.

Nordson (NDSN) rose more than +9% after posting Q2 sales of $682.9 million, exceeding the consensus of $674.8 million, with a Q3 sales forecast of $710 million-$750 million.

Elf Beauty (ELF) soared over +26% after reporting Q4 net sales of $332.6 million, higher than the consensus of $327.4 million, along with the acquisition of Hailey Bieber’s Rhode beauty brand for $800 million.

Veeva Systems (VEEV) increased more than +18% following Q1 revenue of $759.0 million, surpassing estimates of $728.1 million, and raising 2026 revenue forecasts to $3.09 billion-$3.10 billion.

Agilent (A) climbed more than +4% after reporting Q2 net revenue of $1.67 billion, exceeding expectations of $1.63 billion, and raising its full-year revenue forecast.

HP Inc (HPQ) led the S&P 500 losers with a drop of over -8% after reporting Q2 adjusted EPS of 71 cents, below the consensus of 80 cents, and cutting its full-year adjusted EPS forecast significantly.

SentinelOne (S) fell more than -13% after reducing its 2026 revenue forecast to a range below consensus estimates. Best Buy (BBY) dropped over -7%, adjusting its 2026 EPS estimate lower, while Salesforce Inc (CRM) declined more than -5% following a downgrade.

Earnings Reports for May 29, 2025

Upcoming earnings reports include Bath & Body Works Inc (BBWI), Best Buy Co Inc (BBY), Burlington Stores Inc (BURL), Cooper Surgical Inc (COO), Costco Wholesale Corp (COST), Dell Technologies Inc (DELL), Elastic NV (ESTC), Gap Inc (GAP), Hormel Foods Corp (HRL), Kohl’s Corp (KSS), Marvell Technology Inc (MRVL), NetApp Inc (NTAP), Roivant Sciences Ltd (ROIV), UiPath Inc (PATH), Ulta Beauty Inc (ULTA), and Zscaler Inc (ZS).

On the date of publication,
Rich Asplund
did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information please view the Barchart Disclosure Policy
here.

The views and opinions expressed herein are of the author and may not reflect those of Nasdaq, Inc.