Date: 29th May 2025.


NVIDIA Beat Earnings Expectations and The CIT Blocks US Tariffs.



Trading Leveraged products is Risky


The NASDAQ rose to its highest price since February 21st as investors positively reacted to US courts ordering Trump to remove tariffs. In addition to this, NVIDIA stocks rise 5.00% after releasing their latest quarterly earnings report. Let’s take a look at the latest developments impacting the markets.


US Courts Say No To Trump Tariffs


Surprisingly, the Court of International Trade in New York made the decision that the US administration has overstepped its mandate. The court stated that the President must set tariffs through Congress. Although most of these tariffs are currently suspended, it gave the White House 10 days to remove them, except for those on aluminum and steel.


The court order puts doubt on whether tariffs are possible and if they will be part of the current administration. So far, the White House said, ‘It is not for unelected judges to decide how to properly address a national emergency,’ as it launched an appeal against the court. The ruling by the court does have a positive impact in the short-medium term. However, the courts also add uncertainty to the upcoming weeks.


NVIDIA Beat Earnings Expectations


NVIDIA shares climbed after the market closed as investors held onto their positions, buoyed by strong earnings results. The company reported revenue of $44.1 billion, marking a 12% increase from Q4 and a 69% rise year-over-year. Both earnings per share and revenue exceeded prior projections. If momentum is maintained, the stocks may become the most influential stocks for the NASDAQ, and SNP500 again.


Currently, for the NASDAQ, the stocks hold a weight of 11% and 6% for the SNP500. All 3 US indices are currently increasing in value, mainly due to NVIDIA’s earnings report and the court order.



NASDAQ 15-Minute Chart


Federal Reserve Meeting Minutes


The Federal Reserve's meeting minutes from earlier in the month were more negative than expected. According to experts, the market may have had a bearish reaction to the meeting minutes. Though this was avoided due to support from NVIDIA and the latest court order. The meeting minutes reveal heightened concerns over the economic impact of President Trump's trade policies. They particularly highlight the potential loss of the US safe-haven status due to market volatility following tariff announcements.


Officials noted that declines in US government debt prices, equities, and the US Dollar could signal a shift in investor confidence, potentially leading to long-term economic repercussions. Therefore, the report confirms that a recession is still a real concern for the Federal Reserve. However, the Meeting Minutes also stated that upward pressure on inflation may be difficult to control while simultaneously trying to stop the employment sector from weakening.


However, the report is generally known as a lagging indicator. Since the report was drawn up the US administration has become very close to a trade agreement with India and the EU. Due to this, and the court order, the market may pay less attention to the Meeting Minutes.


A key factor for most tradeable assets will be tomorrow’s Core PCE Price Index. The index measures the change in pricing of the most bought goods and services. In addition to the Core PCE Price Index, investors will also closely monitor today’s US Gross Domestic Product and Weekly Unemployment Claims.


*NASDAQ +1.16%
*Dow Jones +1.23%
*US Dollar Index +0.24%
*Gold -0.48%


Key Takeaway Points:


*NASDAQ Rises: Court blocks most Trump tariffs, boosting stocks and the US Dollar. However, the US Dollar quickly gave up the recent gains.
*NVIDIA Shines: Earnings exceed expectations, pushing the stock up 5%. The earnings report supports the stock market as a whole.
*Fed Warnings: Meeting Minutes raise recession concerns from trade policies. The Fed struggles to make decisions due to uncertainties.
*Markets focus their attention on the Core PCE Price Index, GDP, and Weekly Unemployment Claims.


Always trade with strict risk management. Your capital is the single most important aspect of your trading business.


Please note that times displayed based on local time zone and are from time of writing this report.


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Michalis Efthymiou
HFMarkets


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