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. 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 BTC/USD fell below $107,000, giving up recent gains as risk appetite moderated in crypto markets.

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust SPY inched 0.3% up to $589.37.
• The SPDR Dow Jones Industrial Average DIA eased 0.1% to $420.98.
• The tech-heavy Invesco QQQ Trust Series QQQ rose 0.4% to $520.87.
• The iShares Russell 2000 ETF IWM flattened at $205.62.
• The Technology Select Sector SPDR Fund XLK outperformed, up 0.4%; the Communication Services Select Sector SPDR Fund XLC lagged, down 1.1%.

Thursday’s Stock Movers

• Shares of E.l.f. Beauty, Inc. ELF surged 26% Thursday afternoon, following the company’s announcement of its acquisition of lifestyle cosmetics brand Rhode.
• Sentinel One Inc. 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. CRM down 5.42%
• Synopsys, Inc. SNPS up 0.20%
• Veeva Systems Inc. VEEV up 18.45%
• Agilent Technologies, Inc. A up 3.17%
• HP Inc. HPQ down 8.23%
• Hormel Foods Corporation HRL down 0.35%
• Burlington Stores, Inc. BURL down 3.22%
• Best Buy Co., Inc. BBY down 7.90%
• Nordson Corporation NDSN up 5.65%
• Hamilton Lane Incorporated HLNE down 11.21%
• Roivant Sciences Ltd. ROIV up 5.50%
• Bath & Body Works, Inc. BBWI down 6.24%
• Foot Locker, Inc. FL up 0.10%

Now Read:

• Nvidia Stock Has ‘Significant Upside’ As AI ‘Godfather’ Jensen Huang Delivers Another ‘Robust Quarter’
  

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