Nvidia’s Strong Earnings Report and Trump’s Tariffs
On Thursday, the three major indices of Wall Street closed with minor gains. The market reacted positively to Nvidia’s quarterly results, released after the closing bell on Wednesday, while also absorbing a court ruling that reinstated President Donald Trump’s tariffs.
Key Indices Performance
- Dow Jones Industrial Average: Increased by 0.28% to 42,215.73 points
- S&P 500: Advanced 0.40% to 5,912.17 points
- Nasdaq Composite: Rose 0.39% to 19,175.87 points
Nvidia’s stock price surged 3.25% following the company’s significant sales estimates surpassing during the quarter. Meanwhile, the Philadelphia Semiconductor Index (SOX) experienced a slight 0.54% increase.
Expert Analysis
Diego Gonzalez, Business Development Lead at the trading platform Excent Capital, explained: “Historically, Nvidia has shown a strong ability to recover from losses, and it seems the pattern is repeating itself.”
Market Reaction to Court Ruling and US GDP Data
Late Thursday, the stock market learned of a court of appeals ruling that reinstated President Donald Trump’s tariffs, following news of a suspension of these measures that had previously buoyed Wall Street.
Earlier, the market was upbeat after the United States International Trade Commission ruled that President Donald Trump had overstepped by imposing “reciprocal” tariffs and ordered the annulment of all contested tariff orders.
During the session, a US GDP data release also caught attention. The first quarter’s GDP contracted by 0.2%, seasonally adjusted, which was less than an initial estimate of 0.3% and below expectations of 0.4%.
Long-Term Optimism and Key Sectors
Gonzalez added, “There’s a growing sense of long-term optimism, driven by the increasing presence of strategic retail investors and consistent momentum in key sectors like consumer goods, finance, and industry.”
Key Questions and Answers
- Q: What drove Wall Street’s gains on Thursday?
A: The market reacted positively to Nvidia’s strong quarterly results and a better-than-expected US GDP report, while absorbing the reinstatement of President Trump’s tariffs following a court ruling.
- Q: How did Nvidia’s performance impact the market?
A: Nvidia’s stock price increased by 3.25% after the company exceeded sales estimates, contributing to Wall Street’s gains.
- Q: What was the US GDP growth rate for Q1 2023?
A: The US GDP contracted by 0.2% in Q1 2023, seasonally adjusted.
- Q: How did the Philadelphia Semiconductor Index perform?
A: The SOX index experienced a slight 0.54% increase on Thursday.
