Key Market Movers: Court Decision and Nvidia’s Quarterly Sales
On Thursday, the three major indices of Wall Street – the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite – all experienced gains following a federal court ruling against most of President Donald Trump‘s tariffs and a robust quarterly sales report from artificial intelligence (AI) leader Nvidia.
Wall Street Indices Performance
- Dow Jones Industrial Average: Increased by 0.09% to 26,137.17 points
- S&P 500: Rose by 0.39% to 5,911.65 units
- Nasdaq Composite: Advanced by 0.71% to 19,234.84 units
Nvidia’s Quarterly Sales Surge
Nvidia, a leading AI company, reported a 69% increase in quarterly sales. The surge is attributed to customers accumulating AI chips due to the US export restrictions on China. As a result, Nvidia’s stock price rose by 5%.
Other chip stocks also experienced gains, including:
- Qualcomm: +0.58%
- AMD: +0.58%
The Philadelphia Semiconductor Index (SE) also increased by 1% following Nvidia’s quarterly results.
Among the 11 primary sectors of the S&P 500, technology led the gains.
GDP and Jobless Claims Data
The U.S. Commerce Department reported that the Gross Domestic Product (GDP) contracted by 0.2% in the first quarter, adjusted for seasonality, falling short of an initial estimate of 0.3% and below expectations of 0.4%
In labor market news, the Department of Labor reported that weekly jobless claims increased more than anticipated last week. There were 240,000 seasonally adjusted claims, an increase of 14,000 from the previous week.
Court Ruling Against Trump Tariffs
The U.S. International Trade Commission ruled on Wednesday that President Donald Trump overstepped his authority by imposing “reciprocal” tariffs and ordered the cancellation of several contested tariff orders.
Key Questions and Answers
- Q: Who is Donald Trump, and why is he relevant in this context?
A: Donald Trump is the former U.S. President who imposed tariffs on various goods and services during his tenure. In this context, a federal court ruled against most of these tariffs.
- Q: What is Nvidia, and why are its sales important?
A: Nvidia is a leading artificial intelligence company. Its 69% quarterly sales increase indicates strong demand for AI chips, which positively impacts the overall tech sector.
- Q: What is GDP, and why is the reported decline significant?
A: Gross Domestic Product (GDP) measures the total value of goods and services produced in a country. A 0.2% decline suggests a slowdown in economic growth, which may influence investor sentiment.
- Q: What are jobless claims, and why did the recent increase matter?
A: Jobless claims refer to the number of individuals filing for unemployment benefits. An increase in jobless claims may signal potential economic challenges, affecting investor confidence.
