📈 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.
