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Wall Street closed higher on Thursday, driven by real estate and energy stocks. Investor mood was upbeat on a federal appeals court temporarily reinstating the most sweeping of Trump's tariffs. Earnings from a semiconductor giant also boosted morale. All three benchmark indexes closed the session in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) added 0.3%, or 117.03 points, to close at 42,215.73. Twenty-two components of the 30-stock index ended in positive territory, while eight ended in negative.
The tech-heavy Nasdaq Composite gained 74.93 points, or 0.4%, to close at 19,175.87.
The S&P 500 rose 23.62 points, or 0.4%, to close at 5,912.17. Ten of the 11 broad sectors of the benchmark index closed in the green. The Real Estate Select Sector SPDR (XLRE), the Energy Select Sector SPDR (XLE) and the Utilites Select Sector SPDR (XLU) advanced 0.9%, 0.8% and 0.7%, respectively, while the Communication Services Select Sector SPDR (XLC) declined 0.8%.
The fear-gauge CBOE Volatility Index (VIX) decreased 0.7% to 19.18. A total of 18.65 billion shares were traded on Thursday, higher than the last 20-session average of 17.7 billion. Advancers outnumbered decliners by a 2.26-to-1 ratio on the NYSE, while on the Nasdaq, advancing issues led by 1.48:1.
U.S. Court of International Trade Lands a Blow on Tariffs
On Thursday, the U.S. Court of International Trade ruled that President Donald Trump had way surpassed his authority by imposing sweeping tariffs under the International Emergency Economic Powers Act (IEEPA) of 1977. The court found that the IEEPA does not grant the President the power to unilaterally impose such tariffs without Congressional approval, leading to a hold on these tariff impositions.
In response to this ruling, financial markets reacted positively. Major U.S. stock indices experienced gains as investors anticipated a de-escalation in trade tensions. The impact was global. Even the Indian stock market opened higher, reflecting optimism about improved U.S.-India trade relations and the potential for Indian exporters to benefit from a shift in global supply chains away from China.
However, the situation remains fluid. The Trump administration has appealed the decision, and a federal appeals court has temporarily allowed the continuation of tariff collection under emergency powers while the legal process unfolds. This continues to influence market dynamics and investor sentiment. However, on the day, market sentiment was good.
NVDA Earnings Lifts Markets
On Thursday, NVIDIA Corporation’s (NVDA - Free Report) impressive earnings report significantly boosted investor confidence, emphasizing its pivotal role in the AI-driven environment. The company announced a 69% year-over-year revenue increase, reaching $44.1 billion, surpassing Wall Street expectations. The company, which came out with its report on Wednesday after hours, reported quarterly revenues of $44.06 billion, beating the Zacks Consensus Estimate of $42.9 billion.
This robust performance underscored strong demand for Nvidia's AI chips, particularly in data centers, which saw revenues of $39.1 billion, a 73% increase from the previous year. Despite a slide in net profit to $18.78 billion, just below the forecasted $19.49 billion, the market responded positively. Nvidia's stock rose more than 3.3%, reflecting investor optimism about the company's resilience and growth prospects.
The Department of Labor also reported that initial claims increased by 14,000 to 240,000 for the week ended May 24 from the previous week's revised level. The last week's level was revised down by 1,000 from 227,000 to 226,000. The 4-week moving average was 230,750, a decrease of 250 from the prior week's revised average. The previous week's average was revised down by 500 from 231,500 to 231,000.
Continuing claims through the week ending May 17 were 1,919,000, an increase of 26,000 from the previous week's revised level. This is the highest level for continuing claims since November 13, 2021, when it was 1,970,000. The last week's level was revised down by 10,000 from 1,903,000 to 1,893,000. The 4-week moving average was 1,890,250, an increase of 2,750 from the previous week's unrevised average of 1,887,500. This is the highest level for this average since November 27, 2021, when it was 1,923,500.
Per a government report, crude Inventories for the week ended May 23 decreased by 2.8 million barrels. The number for the week prior remained unrevised at 1.3 million barrels.
Per the National Association of Realtors, pending home sales for April declined 6.3%. The number for March was revised down to an increase of 5.5% from the previously reported 6.1%.
Gross Domestic Product (GDP) decreased at an annual rate of 0.2% in the first quarter of 2025, according to the second estimate released by the U.S. Bureau of Economic Analysis. Previously, this was reported to have gone down by 0.3%.
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Stock Market News for May 30, 2025
Wall Street closed higher on Thursday, driven by real estate and energy stocks. Investor mood was upbeat on a federal appeals court temporarily reinstating the most sweeping of Trump's tariffs. Earnings from a semiconductor giant also boosted morale. All three benchmark indexes closed the session in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) added 0.3%, or 117.03 points, to close at 42,215.73. Twenty-two components of the 30-stock index ended in positive territory, while eight ended in negative.
The tech-heavy Nasdaq Composite gained 74.93 points, or 0.4%, to close at 19,175.87.
The S&P 500 rose 23.62 points, or 0.4%, to close at 5,912.17. Ten of the 11 broad sectors of the benchmark index closed in the green. The Real Estate Select Sector SPDR (XLRE), the Energy Select Sector SPDR (XLE) and the Utilites Select Sector SPDR (XLU) advanced 0.9%, 0.8% and 0.7%, respectively, while the Communication Services Select Sector SPDR (XLC) declined 0.8%.
The fear-gauge CBOE Volatility Index (VIX) decreased 0.7% to 19.18. A total of 18.65 billion shares were traded on Thursday, higher than the last 20-session average of 17.7 billion. Advancers outnumbered decliners by a 2.26-to-1 ratio on the NYSE, while on the Nasdaq, advancing issues led by 1.48:1.
U.S. Court of International Trade Lands a Blow on Tariffs
On Thursday, the U.S. Court of International Trade ruled that President Donald Trump had way surpassed his authority by imposing sweeping tariffs under the International Emergency Economic Powers Act (IEEPA) of 1977. The court found that the IEEPA does not grant the President the power to unilaterally impose such tariffs without Congressional approval, leading to a hold on these tariff impositions.
In response to this ruling, financial markets reacted positively. Major U.S. stock indices experienced gains as investors anticipated a de-escalation in trade tensions. The impact was global. Even the Indian stock market opened higher, reflecting optimism about improved U.S.-India trade relations and the potential for Indian exporters to benefit from a shift in global supply chains away from China.
However, the situation remains fluid. The Trump administration has appealed the decision, and a federal appeals court has temporarily allowed the continuation of tariff collection under emergency powers while the legal process unfolds. This continues to influence market dynamics and investor sentiment. However, on the day, market sentiment was good.
NVDA Earnings Lifts Markets
On Thursday, NVIDIA Corporation’s (NVDA - Free Report) impressive earnings report significantly boosted investor confidence, emphasizing its pivotal role in the AI-driven environment. The company announced a 69% year-over-year revenue increase, reaching $44.1 billion, surpassing Wall Street expectations. The company, which came out with its report on Wednesday after hours, reported quarterly revenues of $44.06 billion, beating the Zacks Consensus Estimate of $42.9 billion.
This robust performance underscored strong demand for Nvidia's AI chips, particularly in data centers, which saw revenues of $39.1 billion, a 73% increase from the previous year. Despite a slide in net profit to $18.78 billion, just below the forecasted $19.49 billion, the market responded positively. Nvidia's stock rose more than 3.3%, reflecting investor optimism about the company's resilience and growth prospects.
Consequently, shares of Gilead Sciences, Inc. (GILD - Free Report) and Fair Isaac Corporation (FICO - Free Report) rose 2.4% and 4%, respectively. Both currently carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
The Department of Labor also reported that initial claims increased by 14,000 to 240,000 for the week ended May 24 from the previous week's revised level. The last week's level was revised down by 1,000 from 227,000 to 226,000. The 4-week moving average was 230,750, a decrease of 250 from the prior week's revised average. The previous week's average was revised down by 500 from 231,500 to 231,000.
Continuing claims through the week ending May 17 were 1,919,000, an increase of 26,000 from the previous week's revised level. This is the highest level for continuing claims since November 13, 2021, when it was 1,970,000. The last week's level was revised down by 10,000 from 1,903,000 to 1,893,000. The 4-week moving average was 1,890,250, an increase of 2,750 from the previous week's unrevised average of 1,887,500. This is the highest level for this average since November 27, 2021, when it was 1,923,500.
Per a government report, crude Inventories for the week ended May 23 decreased by 2.8 million barrels. The number for the week prior remained unrevised at 1.3 million barrels.
Per the National Association of Realtors, pending home sales for April declined 6.3%. The number for March was revised down to an increase of 5.5% from the previously reported 6.1%.
Gross Domestic Product (GDP) decreased at an annual rate of 0.2% in the first quarter of 2025, according to the second estimate released by the U.S. Bureau of Economic Analysis. Previously, this was reported to have gone down by 0.3%.