Stocks Edge Higher After Court Stifles Trump Tariffs, Nvidia Rallies To 3-Month Highs, Bitcoin Dips Below $107K: What's Driving Markets Thursday?
Wall Street hovered slightly higher by midday Thursday, giving up a chunk of strong overnight gains in futures markets that were triggered by a federal court ruling suspending a large portion of President Donald Trump’s tariffs.
Nvidia Corp. (NASDAQ:NVDA) led the market after reporting a better-than-feared quarter. The artificial intelligence leader showed resilience in the face of export restrictions. Shares rose 4.3%, ranking as the second-best performer on the S&P 500 and climbing to their highest level in more than three months.
By midday:
- The S&P 500 was up 0.3% at 5,900.
- The Nasdaq 100 gained 0.5%.
- The Dow Jones Industrial Average traded flat.
Fresh Economic Data Adds To Mixed Tone
First-quarter U.S. gross domestic product shrank 0.2%, slightly improving from the initial 0.3% estimate. Still, it marked a sharp slowdown compared to the 2.4% growth in the last quarter of 2024, reflecting slower consumer spending and higher imports ahead of the tariffs impact.
More concerning was the labor market. Initial jobless claims for the week ending May 24 jumped to 240,000, exceeding expectations and reaching their highest level in nearly four months. Continuing claims also rose to levels last seen in November 2021, indicating potential softening in employment trends.
The U.S. dollar pulled back, nearly wiping out gains from the prior two sessions as traders reassessed the outlook for interest rates. Meanwhile, Treasury yields dropped, with the 30-year note falling to 4.92% and the 10-year yield easing to 4.42%.
Federal Reserve Chair Jerome Powell met with Trump at the White House, the Fed confirmed.
The meeting focused on recent economic developments, including inflation, employment and growth. Powell reiterated that the Fed’s policy path would remain dependent on incoming data but refrained from commenting on future rate decisions.
Gold climbed 1.1% to $3,320 per ounce, buoyed by lower yields and dollar weakness. Meanwhile, Bitcoin (CRYPTO: BTC) fell below $107,000, giving up recent gains as risk appetite moderated in crypto markets.
| Major Indices | Price | 1-day %Chg |
| Nasdaq 100 | 21,414.87 | 0.5% |
| S&P 500 | 5,906.48 | 0.3% |
| Russell 2000 | 2,069.76 | 0.1% |
| Dow Jones | 42,091.08 | 0.0% |
According to Benzinga Pro data:
- The SPDR S&P 500 ETF Trust (NYSE:SPY) inched 0.3% up to $589.37.
- The SPDR Dow Jones Industrial Average (NYSE:DIA) eased 0.1% to $420.98.
- The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) rose 0.4% to $520.87.
- The iShares Russell 2000 ETF (NYSE:IWM) flattened at $205.62.
- The Technology Select Sector SPDR Fund (NYSE:XLK) outperformed, up 0.4%; the Communication Services Select Sector SPDR Fund (NYSE:XLC) lagged, down 1.1%.
Thursday’s Stock Movers
- Shares of E.l.f. Beauty, Inc. (NYSE:ELF) surged 26% Thursday afternoon, following the company’s announcement of its acquisition of lifestyle cosmetics brand Rhode.
- Sentinel One Inc. (NYSE:S) tumbled 11% after BofA Securities downgraded the stock from ‘Buy’ to ‘Neutral’ citing “weak trends and lackluster guidance” while lowering its price target from $24 to $21.
Stocks reacting to earnings included:
- Salesforce, Inc. (NYSE:CRM) down 5.42%
- Synopsys, Inc. (NASDAQ:SNPS) up 0.20%
- Veeva Systems Inc. (NYSE:VEEV) up 18.45%
- Agilent Technologies, Inc. (NYSE:A) up 3.17%
- HP Inc. (NYSE:HPQ) down 8.23%
- Hormel Foods Corporation (NYSE:HRL) down 0.35%
- Burlington Stores, Inc. (NYSE:BURL) down 3.22%
- Best Buy Co., Inc. (NYSE:BBY) down 7.90%
- Nordson Corporation (NASDAQ:NDSN) up 5.65%
- Hamilton Lane Incorporated (NASDAQ:HLNE) down 11.21%
- Roivant Sciences Ltd. (NASDAQ:ROIV) up 5.50%
- Bath & Body Works, Inc. (NYSE:BBWI) down 6.24%
- Foot Locker, Inc. (NYSE:FL) up 0.10%
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