📈 Nvidia’s Earnings Power Markets Through Tariff Turmoil

Date / Source: May 30, 2025 / Wall Street Journal

📝 Summary

Nvidia Leads Market Gains Despite Trade Volatility

• Nvidia stock rose 3.2% on Thursday, helping lift broader indexes even as trade policy uncertainty rattled markets.

• The gains followed strong Nvidia earnings, despite a $2.5 billion shortfall in China-bound chip shipments due to export controls.

Tariff Uncertainty Roils Markets

• Early optimism grew after a federal trade court overturned Trump’s tariffs, but an appeals court later paused the decision.

• Despite this back-and-forth, the S&P 500 and Nasdaq fell about 0.4%, while the Dow rose 117 points (0.3%).

Investor Sentiment Turning Cautious

• Analysts say markets are becoming numb to tariff headlines, treating them as the new normal.

• Yet, cracks are showing: U.S. demand for goods and services has hit its weakest level since 2023.

• CEO confidence plunged in Q1, the steepest drop since the Conference Board began tracking in 1976.

Corporate Reactions Mixed

• Major firms like Boeing and Best Buy held steady, showing no major outlook shifts.

• However, some economists warn Trump might still push new tariffs targeting specific sectors.

Economic Headwinds Building

• Rising U.S. deficits, a weaker dollar, and elevated interest rates are slowing momentum.

• Meanwhile, 10-year Treasury yields fell to 4.423%, down for the fourth time in five sessions.

Earnings vs. Trade Policy

• Analysts say earnings—rather than tariff relief—are the main driver of market gains.

• The S&P 500’s 13% Q1 profit growth has fueled optimism, even as policy remains a risk.

Market Reaction

• All three major indexes ended higher on Thursday, though gains were muted.

• Investors are laser-focused on earnings, while tariffs remain an unpredictable risk.