U.S. Markets Close Green as Trump’s Tariff Turmoil Casts Shadow Over Gains

U.S. stocks closed higher on Thursday, buoyed by Nvidia’s blockbuster earnings, but the mood was tempered by renewed uncertainty over President Donald Trump’s shifting tariff policies.

The S&P 500 rose 0.4%, while the tech-heavy Nasdaq Composite gained 0.39%. The Dow Jones Industrial Average added 127 points (about 0.3%), despite a sharp 3.4% drop in Salesforce following its disappointing earnings report.

Earlier in the day, all three major indexes had traded sharply higher, but optimism cooled as fresh developments in the trade and tariff front emerged.

Tariff Confusion Reignites Market Jitters

Investors were rattled after a federal appeals court reinstated Trump’s tariffs on the European Union, just hours after the U.S. Court of International Trade had ruled them unlawful. The Trump administration is expected to seek a Supreme Court stay on the ruling as early as Friday.

The president’s unpredictable stance on “reciprocal” tariffs continues to muddy the market outlook, fueling inflation concerns and creating headaches for companies. Several firms, including Best Buy, have pointed to tariff pressures as a key reason behind weaker forecasts.

Nvidia Powers Through the Noise

Helping to steady market sentiment was Nvidia, whose shares surged nearly 3% after the chipmaker delivered a blowout first-quarter report. Nvidia posted an eye-popping 73% year-over-year growth in its data center business, smashing revenue and earnings expectations.

While the company did warn of an $8 billion hit in the next quarter due to U.S. export restrictions to China, investors largely shrugged off the warning, focusing instead on Nvidia’s AI-driven momentum and leadership position in the tech space.

Strong May Performance Across the Board

Despite the swirling trade-policy headwinds, the broader market remains on track to wrap up both the week and the month solidly in the green:

S&P 500: Up 6% in May

Dow Jones: Up 3.5%

Nasdaq: Up nearly 10%

Looking ahead, investors are eyeing upcoming earnings from Costco and watching for the next round of White House announcements on tariffs, which could further shake or stabilize sentiment.