Stock Index Futures Rally on Tariff Ruling and Upbeat Nvidia Earnings, U.S. GDP Data and Fed Speak on Tap

June S&P 500 E-Mini futures (ESM25) are up +1.57%, and June Nasdaq 100 E-Mini futures (NQM25) are up +1.96% this morning as risk sentiment improved following upbeat earnings from Nvidia and after a federal trade court struck down U.S. President Donald Trump’s sweeping tariffs.

A panel of three judges at the U.S. Court of International Trade in Manhattan ruled that President Trump didn’t have the authority to impose sweeping tariffs on nearly every nation. Trump was granted 10 days to suspend the tariffs. The court’s order covers Trump’s global flat tariff, increased duties on China and others, and his fentanyl-related tariffs on China, Canada, and Mexico. Still, other tariffs imposed under separate powers, such as the Section 232 and Section 301 levies, are unaffected and cover items like steel, aluminum, and automobiles. In a swift response, the Trump administration lodged an appeal and questioned the court’s authority. The final ruling in the high-stakes case could ultimately lie with higher courts, including the U.S. Supreme Court.

Investors also digested Nvidia’s (NVDA) upbeat earnings. Shares of the world’s most valuable chipmaker climbed over +5% in pre-market trading after the company posted better-than-expected Q1 results and gave a solid Q2 revenue forecast.

Investor focus now shifts to fresh U.S. economic data, including the second estimate of first-quarter GDP and jobless claims figures, as well as remarks from Federal Reserve officials.

The minutes of the Federal Open Market Committee’s May 6-7 meeting, released Wednesday, revealed that officials broadly agreed that heightened economic uncertainty warranted their patient stance on interest-rate adjustments. Policymakers judged that the risks of both higher unemployment and inflation had increased since their prior meeting in March, largely due to the potential effects of tariffs. “Participants agreed that with economic growth and the labor market still solid and current monetary policy moderately restrictive, the committee was well positioned to wait for more clarity on the outlooks for inflation and economic activity,” according to the FOMC minutes. In addition, the minutes said, “Participants agreed that uncertainty about the economic outlook had increased further, making it appropriate to take a cautious approach until the net economic effects of the array of changes to government policies become clearer.”

In yesterday’s trading session, Wall Street’s main stock indexes closed lower. U.S. chip software designers slumped after the Financial Times reported that the Trump administration told U.S. firms providing software for semiconductor design to stop selling their services to China, with Cadence Design Systems (CDNS) plunging over -10% to lead losers in the S&P 500 and Nasdaq 100 and Synopsys (SNPS) falling more than -9%. Also, PDD Holdings (PDD) slid over -4% after three brokerages downgraded the ADRs. In addition, Okta (OKTA) tumbled more than -16% after the identity access management company maintained its full-year revenue guidance, disappointing investors. On the bullish side, Fair Isaac (FICO) climbed over +7% and was the top percentage gainer on the S&P 500 after Baird upgraded the stock to Outperform from Neutral with a price target of $1,900.

Economic data released on Wednesday showed that the U.S. Richmond Fed manufacturing index rose to -9 in May, in line with expectations.

Today, all eyes are focused on the U.S. Commerce Department’s second estimate of gross domestic product. Economists expect the U.S. economy to contract at an annual rate of 0.3% in the first quarter, in line with initial estimates.

Investors will also focus on U.S. Initial Jobless Claims data. Economists expect this figure to be 229K, compared to last week’s number of 227K.

U.S. Pending Home Sales data will be reported today. Economists foresee the April figure standing at -0.9% m/m, compared to the previous figure of +6.1% m/m.

U.S. Crude Oil Inventories data will be released today as well. Economists expect this figure to be 1.000M, compared to last week’s value of 1.328M.

On the earnings front, notable companies like Dell Technologies (DELL), Marvell Technology (MRVL), Zscaler (ZS), Ulta Beauty (ULTA), and Best Buy (BBY) are slated to release their quarterly results today.

In addition, market participants will be looking toward speeches from Fed officials Barkin, Goolsbee, Kugler, Daly, and Logan.

U.S. rate futures have priced in a 97.7% probability of no rate change and a 2.3% chance of a 25 basis point rate cut at the Fed’s monetary policy committee meeting next month.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.522%, up +0.96%.

The Euro Stoxx 50 Index is up +0.69% this morning, boosted by easing tariff risks after a U.S. court blocked President Donald Trump’s tariffs from taking effect. Technology stocks outperformed on Thursday as Nvidia’s strong earnings boosted investor confidence in the AI sector. Automobile stocks, sensitive to tariff-related pressures, also gained ground. In addition, luxury stocks, which have significant exposure to the U.S. market, advanced. Data from the statistical office Istat released on Thursday showed that consumer confidence in Italy improved much more than expected in May. Meanwhile, Eurozone government bond yields edged higher on Thursday, as investors rotated out of safe-haven assets into riskier ones amid the latest trade developments. In corporate news, Auto Trader Group Plc (AUTO.LN) plunged over -14% after the U.K.’s largest automotive platform posted weaker-than-expected annual revenue.

Italy’s Consumer Confidence data was released today.

The Italian May Consumer Confidence arrived at 96.5, stronger than expectations of 93.0.

Asian stock markets today closed in the green. China’s Shanghai Composite Index (SHCOMP) closed up +0.70%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +1.88%.

China’s Shanghai Composite Index closed higher today, snapping a five-session losing streak as sentiment got a boost after a U.S. trade court struck down President Donald Trump’s sweeping “reciprocal tariffs.” Technology stocks outperformed on Thursday. Still, analysts said that the benchmark index’s gains were limited as uncertainty surrounding bilateral ties between Washington and Beijing persisted. Frances Cheung, head of FX and rates strategy at OCBC Bank, said, “Development on tariff and trade relations remains fluid. Investors may be reluctant to load heavy positions on either side of the trade.” Meanwhile, the Trump administration reportedly told certain U.S. semiconductor design software providers to stop shipments to China. Also, U.S. Secretary of State Marco Rubio said on Wednesday that the U.S. will begin “aggressively” revoking visas of Chinese students, particularly those linked to the Chinese Communist Party or enrolled in critical fields. In other news, China’s commerce ministry said on Thursday that China and the U.S. have continued to maintain communication at multiple levels through both multilateral and bilateral channels since their meeting in Geneva earlier this month. In corporate news, Staidson Beijing BioPharmaceuticals jumped +20% after releasing encouraging preliminary results from its clinical trials on STSA-1002 injection, a treatment aimed at patients with acute respiratory distress syndrome. Investors now await China’s manufacturing activity data for May, set for release on Saturday, for fresh insights into the health of the economy.

Japan’s Nikkei 225 Stock Index closed sharply higher and hit a more than 2-week high today after a U.S. federal court blocked President Donald Trump’s global tariffs. Financial and automobile stocks led the gains on Thursday. Chip-related stocks also advanced following upbeat earnings from the world’s most valuable chipmaker, Nvidia. Data released on Thursday showed that Japan’s consumer confidence index rebounded from a more than 2-year low in May. Meanwhile, super-long Japanese government bond yields climbed on Thursday due to a lack of clarity regarding the Ministry of Finance’s issuance plans. Bank of Japan Governor Kazuo Ueda said earlier this week that the central bank will remain alert to the risk that significant fluctuations in super-long bond yields could affect shorter-term borrowing costs and have a broader impact on the economy. On the trade front, Japan’s top tariff negotiator, Ryosei Akazawa, said on Thursday that the country is weighing the use of U.S. defense equipment purchases as a bargaining chip in tariff negotiations. In other news, foreign investors acquired Japanese stocks for an eighth consecutive week through May 24th, with net purchases totaling 309.3 billion yen, according to data from the Ministry of Finance. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed up +0.82% to 23.39.

The Japanese May Household Confidence stood at 32.8, stronger than expectations of 31.8.

Pre-Market U.S. Stock Movers

Nvidia (NVDA) climbed over +5% in pre-market trading after the world’s most valuable chipmaker posted better-than-expected Q1 results and gave a solid Q2 revenue forecast.

Tesla (TSLA) rose more than +2% in pre-market trading after CEO Elon Musk said he would step down from his role as a senior adviser to President Trump to focus more on his businesses.

Agilent Technologies (A) gained over +5% in pre-market trading after the life sciences company posted upbeat FQ2 results and raised its full-year revenue guidance.

HP Inc. (HPQ) slumped more than -7% in pre-market trading after the personal computer company reported weaker-than-expected FQ2 adjusted EPS and cut its full-year adjusted EPS guidance.

SentinelOne (S) plunged over -12% in pre-market trading after the cybersecurity company issued below-consensus Q2 revenue guidance.

You can see more pre-market stock movers here

Today’s U.S. Earnings Spotlight: Thursday - May 29th

RBC (RY), Dell Tech (DELL), Canadian Imperial Bank (CM), Marvell (MRVL), Zscaler (ZS), Li Auto (LI), NetApp (NTAP), Ulta Beauty (ULTA), Hormel Foods (HRL), Cooper (COO), Burlington Stores (BURL), Futu (FUTU), Gap (GAP), Hamilton Lane (HLNE), Elastic (ESTC), Roivant Sciences (ROIV), UiPath (PATH), BRP Inc (DOOO), Ambarella (AMBA), Foot Locker (FL), American Eagle Outfitters (AEO), Pagerduty (PD), Kohl’s Corp (KSS), American Woodmark (AMWD), SpartanNash Co (SPTN), Caleres (CAL), Build-A-Bear Workshop (BBW), NGL Energy Partners LP (NGL), Movado (MOV), Sound Point Meridian Capital (SPMC), Diana Shipping (DSX).