📈 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, propelling broader indexes upward amid market turbulence caused by shifting U.S. trade policy.
The surge followed Nvidia’s strong earnings, which came despite being unable to ship $2.5 billion worth of chips to China due to export restrictions.
🏛️ Tariff Uncertainty Roils Markets
Early optimism grew after a U.S. federal trade court struck down President Trump’s broad tariffs.
However, a federal appeals court later issued a stay, muting gains.
Despite the back-and-forth, the S&P 500 and Nasdaq rose ~0.4%, and the Dow climbed 117 points (0.3%).
📉 Investor Sentiment Turning Cautious
Analysts note that markets are becoming desensitized to tariff headlines, as volatility has become a norm.
But underlying cracks are emerging: U.S. consumer and business demand was the weakest 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 said no major changes to their outlooks, despite tariff developments.
However, some economists warn that Trump may still succeed on appeal or implement alternate, sector-specific tariffs.
📊 Economic Headwinds Building
A rising U.S. deficit, dollar weakness, and elevated interest rates are casting shadows over the recovery.
Meanwhile, 10-year Treasury yields declined to 4.423%, marking four drops in the last five sessions.
💬 Earnings vs. Trade Policy
According to analysts, earnings are the real engine behind market gains, not tariff relief.
The S&P 500 has reported 13% Q1 profit growth so far, fueling optimism even amid policy risks.
📉 Market Reaction
All three major indexes ended Thursday higher, though gains were modest.
Investors are increasingly focused on corporate earnings as the key driver, with tariff policy seen as an unpredictable wild card.
