US stock markets surged on Thursday after the Court of International Trade ruled that President Donald Trump had overstepped his authority by imposing “reciprocal” tariffs. The court ordered all of the tariff orders to be canceled, easing tensions among investors worried about the uncertainty of US trade policy. The S&P 500 index rose 0.8%, while the Nasdaq jumped 1.5%, returning to positive territory for the year.
However, analysts warned that this is not the end of Trump’s aggressive policies. Adam Crisafulli of Vital Knowledge stressed that Trump still has other legal channels to implement his agenda. These concerns have fueled speculation that trade negotiations with foreign countries may drag on into the second half of this year. The date for the implementation of tariffs on the EU has also been postponed to July 9, adding to uncertainty among companies and investors.
At the same time, Nvidia shares jumped more than 5% after the company’s first-quarter financial report beat market expectations. The company's data center division posted a 73% annual growth, reinjecting market excitement on Wall Street that had been eroded by trade tensions and inflation concerns. Investors are now once again focusing on the potential of artificial intelligence (AI) technology as a future growth driver.
As a result, major indexes such as the S&P 500, Dow Jones and Nasdaq are on track to close out May with significant gains. The Nasdaq has surged 11% this month, driven in part by AI announcements from tech giants such as Alphabet. While market sentiment has recovered, the shadow of Trump's trade policy uncertainty has not completely disappeared from investors' radar.
