(Sharecast News) - Major indices traded higher on Thursday as market participants digested news that while a federal court struck down Donald Trump's so-called "reciprocal" tariffs, an appeals court later allowed them to be temporarily reinstated as it heard the White House's argument.
At the close, the Dow Jones Industrial Average was up 0.28% at 42,215.73, while the S&P 500 advanced 0.40% to 5,912.17 and the Nasdaq Composite saw out the session 0.39% firmer at 19,175.87.
The Dow closed 117.03 points higher on Thursday, taking a bite out of losses recorded in the previous session as minutes from the Federal Reserve's latest two-day policy meeting revealed that policymakers were growing more concerned about the potentially inflationary impact of Trump's "Liberation Day" tariffs.
On Wednesday night, the US Court of International Trade ruled that Trump had overstepped his authority when imposing his "reciprocal" tariffs and ordered that the challenged tariff orders be vacated. In a major blow to the president's core economic policy, the court ruled that Congress alone had exclusive authority to regulate commerce with other countries, and that presidential powers to safeguard the economy did not overrule that. The ruling invalidates most of Trump's tariffs with immediate effect, with the administration being given ten days to dismantle the regime.
However, the White House's global tariffs were later temporarily reinstated, after an appeals court agreed to pause a ruling blocking Trump's sweeping trade levies as it considers the administration's appeal. White House Press Secretary Karoline Leavitt claimed "we will win this battle in court" and said the administration was working to "tackle rogue judges".
In terms of Thursday's macro headlines, Americans lined up for unemployment benefits at an accelerated pace in the week ended 10 May, according to the Department of Labor. Initial jobless claims rose by 14,000 week-on-week to 240,000, the highest reading in a month, and above expectations of 230,000. Outstanding claims rose by 26,000 to 1.91m, also above market expectations of a drop to 1.89m, and the highest level since November 2021.
Elsewhere, the US economy shrank by 0.2% year-on-year during Q125, according to revised official statistics from the Bureau of Economic Analysis, confirming preliminary reports that the US economy had seen its first contraction since 2022. Q1's GDP contraction comes after a 2.4% expansion in Q424 and was principally a result of a surge in activity as US firms hurried to import goods before Donald Trump's sweeping tariffs.
Finally, pending home sales fell by 6.30% month-on-month in April, according to the National Association of Realtors, down from a 5.5% increase in March.
In the corporate space, shares in chipmaker Nvidia headed higher after the tech giant's Q1 figures exceeded expectations on both the top and bottom lines, driven by a 73% year-on-year improvement in its data centre business, while Best Buy was under pressure after Trump's tariff regime caused the US electronics retailer to slash its full-year revenue guidance to $41.1bn-41.9bn this year, down from its previous forecast og between $41.4bn-42.2bn.
After the close, Dell Technologies said Q1 revenues had grown 5% year-on-year, while retailer Gap posted another strong earnings beat but warned that Trump's tariffs were expected to cost it $250.0m-300.0m, without mitigation efforts.
Reporting by Iain Gilbert at Sharecast.com
Dow Jones - Risers
Boeing Co. (BA) $208.18 3.32%
Amgen Inc. (AMGN) $283.54 1.85%
Dow Chemical Co. (DOW) $28.79 1.59%
Chevron Corp. (CVX) $137.91 1.39%
Johnson & Johnson (JNJ) $153.58 0.75%
Visa Inc. (V) $362.40 0.74%
Procter & Gamble Co. (PG) $168.56 0.72%
American Express Co. (AXP) $295.38 0.69%
Caterpillar Inc. (CAT) $351.79 0.66%
3M Co. (MMM) $149.63 0.65%
Dow Jones - Fallers
Salesforce.Com Inc. (CRM) $266.92 -3.30%
International Business Machines Corporation (CDI) (IBM) $258.69 -0.60%
Intel Corp. (INTC) $20.25 -0.59%
Goldman Sachs Group Inc. (GS) $604.86 -0.59%
Nike Inc. (NKE) $61.44 -0.55%
Cisco Systems Inc. (CSCO) $63.05 -0.47%
McDonald's Corp. (MCD) $311.86 -0.31%
Apple Inc. (AAPL) $199.92 -0.25%
Walmart Inc. (WMT) $97.10 -0.14%
Dowdupont Inc. (DWDP) $0.00 0.00%
S&P 500 - Risers
Nektar Therapeutics (NKTR) $0.74 5.73%
Coty Inc. Class A (COTY) $4.99 4.61%
Biogen Inc (BIIB) $132.75 4.09%
Estee Lauder Co. Inc. (EL) $68.67 3.62%
AES Corp. (AES) $10.05 3.61%
Dxc Technology Company (DXC) $15.46 3.48%
Hershey Foods Corp. (HSY) $161.32 3.48%
Boeing Co. (BA) $208.18 3.32%
Nvidia Corp. (NVDA) $139.18 3.24%
Everest Group (EG) $346.35 3.21%
S&P 500 - Fallers
HP Inc (HPQ) $24.95 -8.27%
Advance Auto Parts (AAP) $48.36 -8.25%
Best Buy Co. Inc. (BBY) $66.32 -7.27%
Arista Networks Inc. (ANET) $86.37 -6.92%
Bath & Body Works, Inc. (BBWI) $28.58 -6.23%
Under Armour Inc. Class A (UAA) $6.72 -3.59%
Salesforce.Com Inc. (CRM) $266.92 -3.30%
Under Armour, Inc. (UA) $6.35 -2.91%
Charter Communications Inc. (CHTR) $395.81 -2.84%
Electronic Arts Inc. (EA) $142.84 -2.75%
Nasdaq 100 - Risers
JD.com, Inc. (JD) $32.94 4.31%
Biogen Inc (BIIB) $132.75 4.09%
Qvc Group Inc Series A (QVCGA) $4.71 3.74%
Nvidia Corp. (NVDA) $139.18 3.24%
Gilead Sciences Inc. (GILD) $111.11 2.46%
Regeneron Pharmaceuticals Inc. (REGN) $605.39 2.29%
Trip.com Group Limited (TCOM) $64.56 2.20%
Amgen Inc. (AMGN) $283.54 1.85%
Kraft Heinz Co. (KHC) $27.02 1.81%
Incyte Corp. (INCY) $66.04 1.71%
Nasdaq 100 - Fallers
Charter Communications Inc. (CHTR) $395.81 -2.84%
Electronic Arts Inc. (EA) $142.84 -2.75%
Starbucks Corp. (SBUX) $84.05 -2.27%
Netflix Inc. (NFLX) $1,184.86 -1.96%
Henry Schein Inc. (HSIC) $71.98 -1.93%
Synopsys Inc. (SNPS) $454.99 -1.61%
Cadence Design Systems Inc. (CDNS) $284.50 -1.42%
Applied Materials Inc. (AMAT) $159.48 -1.31%
Take-Two Interactive Software Inc. (TTWO) $225.39 -1.29%
Hologic Inc. (HOLX) $62.92 -1.24%
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