S&P 500 Rises as Nvidia Soars Amid Trump Tariff Uncertainty

U.S. stocks closed higher Thursday, driven by Nvidia’s strong performance, even as trade policy concerns resurfaced. The S&P 500 gained 0.4%, the Dow rose 0.3%, and the Nasdaq added 0.4%. All major indexes are on track for weekly and monthly gains, with the S&P 500 up 5.7% this month and the Nasdaq leading with a 9.5% jump.

Investor sentiment was rattled by a legal tug-of-war over former President Donald Trump’s proposed reciprocal tariffs. A federal appeals court reinstated the tariffs Thursday, days after the Court of International Trade blocked them, ruling Trump exceeded his authority under the International Emergency Economic Powers Act. Both sides are expected to present further arguments in early June.

Despite the uncertainty, Nvidia (NASDAQ: NVDA) rallied on strong first-quarter earnings, fueled by high demand for AI chips and data center servers. The company also noted an $8 billion sales impact from U.S. export restrictions to China but remained optimistic. Analysts, including Wedbush, called the forecast “impressive,” reinforcing Nvidia’s role as a key AI growth indicator.

Tesla (NASDAQ: TSLA) also gained after CEO Elon Musk announced his departure from the Trump administration to focus fully on Tesla. Meanwhile, Kohl’s (NYSE: KSS) rose on a narrower-than-expected loss and reaffirmed annual targets, while Best Buy (NYSE: BBY) fell after cutting its 2026 outlook due to tariff risks.

Economic data painted a weaker picture, with Q1 GDP contracting 0.2%, revised slightly from the initial 0.3% decline. Unemployment claims rose to 240,000 last week, signaling softening labor conditions. Markets now turn to upcoming comments from several Federal Reserve officials for insight into future monetary policy.