US Stocks Finish Modestly Higher Amid Uncertainty Over Tariffs and Trade Policies

Strategic Insights -

US stocks closed moderately higher Thursday, driven by strong earnings from Nvidia, despite ongoing uncertainty over President Donald Trump's trade policies. A key ruling from the US Court of International Trade blocked most of the tariffs Trump's administration had announced, sparking concerns that the trade war drama could stretch out further. The Dow Jones Industrial Average finished the day up 0.3 percent, while the broad-based S&P 500 and tech-rich Nasdaq Composite Index both gained 0.4 percent.

Key Takeaways:

  • Nvidia reported a record $18.8 billion in quarterly profits, despite a multi-billion dollar hit from US export controls, with shares jumping 3.3 percent.
  • The US Court of International Trade blocked most of the duties the White House had announced, in a major setback for Trump's trade policies.
  • An appeals court later issued a temporary suspension on the ruling, as the litigation proceeds.
  • Boeing shares climbed 3.3 percent after its CEO expressed hope that the company could be cleared by US regulators to boost production of the 737 MAX, leading to higher revenues.
  • Best Buy shares slumped 7.3 percent after the electronics retailer cut its full-year forecast due to the tariffs.
  • Art Hogan of B. Riley Wealth Management said the judicial actions could prolong uncertainty about trade, potentially leading some countries to shift course in their negotiations with Trump.
  • The ruling may also make countries question Trump's leverage in trade talks.

Statistics:

  • The Dow Jones Industrial Average finished the day up 0.3 percent, at 42,215.73.
  • The broad-based S&P 500 gained 0.4 percent, closing at 5,912.17.
  • The tech-rich Nasdaq Composite Index also jumped 0.4 percent, ending at 19,175.87.
  • Nvidia reported $18.8 billion in quarterly profits, despite a significant hit from US export controls.
  • Boeing shares increased 3.3 percent after its CEO's comments on production.
  • Best Buy shares declined 7.3 percent after cutting its full-year forecast.

Sources:

  • Bloomberg: "US Stocks Finish Modestly Higher Amid Uncertainty Over Tariffs and Trade Policies"
  • Reuters: "US trade court blocks tariffs in major setback for Trump"
  • CNBC: "Nvidia surges 3.3% on record $18.8 billion quarter earnings"
  • B. Riley Wealth Management (quoted in Bloomberg)