New York stocks uniformly rose on Thursday.
The market, which had declined the previous day due to intense anticipation surrounding Nvidia’s earnings report, rebounded sharply with Nvidia’s impressive earnings report.
Nvidia’s revenue surged nearly 70% despite recent semiconductor export restrictions, breathing new life into the artificial intelligence (AI) sector.
Nvidia’s stock jumped 3.2%, leading gains among the M7 tech giants except for Apple and Alphabet.
Market Rebound
Nvidia’s earnings report had a significant impact on the New York stock market’s performance over two consecutive days.
After closing lower the previous day while awaiting Nvidia’s quarterly earnings report, the market pivoted to positive territory on Thursday, buoyed by Nvidia’s impressive performance.
However, the day’s gains were limited by lingering uncertainty surrounding U.S. President Donald Trump’s tariff policies due to a court ruling.
The Dow Jones Industrial Average recovered in afternoon trading, finishing up 117.03 points (0.28%) at 42,215.73.
The S&P 500, which broadly reflects market conditions, reclaimed the 5,900 mark, rising 23.62 points (0.40%) to close at 5,912.17.
The tech-heavy Nasdaq Composite added 74.93 points (0.39%) ending the session at 19,175.87.
Trump Tariffs Remain
The New York Court of International Trade’s initial ruling invalidated reciprocal tariffs and fentanyl retaliation tariffs, which the administration had criticized as judicial overreach. However, the injunction was suspended following a temporary administrative stay issued by the appeals court.
The federal appeals court granted the Trump administration’s request to maintain the tariffs during the appeal process.
While the reciprocal tariffs are not immediately affected since Trump announced a 90-day grace period on May 9, the fentanyl retaliation tariffs will take effect immediately.
Trump imposed a 20% tariff on imports from Canada, Mexico, and China, arguing that these countries failed to prevent the illegal inflow of fentanyl into the U.S., leading to a fentanyl crisis.
Nvidia Soars
Nvidia’s stock surged over 3%.
Despite export restrictions on its H20 semiconductors to China, revenue from its data center segment, driven by AI semiconductors, reported a staggering 73% year-over-year increase, alleviating market concerns.
Data center revenue now comprises 88% of Nvidia’s total revenue, underscoring its pivotal role in the company’s growth.
While some analysts remain cautious, most experts are optimistic that Nvidia will maintain its AI semiconductor leadership, leveraging its cutting-edge Blackwell chip technology.
Nvidia’s stock showed strong momentum, jumping 8.68 USD (6.44%) to 143.49 USD before settling at 139.19 USD, up 4.38 USD (3.25%) for the day.
Tesla Gains on Musk’s Renewed Focus
Tesla extended its winning streak for a second consecutive day.
Tesla CEO Elon Musk announced that he would step down from his position as head of the Department of Government Efficiency (DOGE) to concentrate on Tesla’s management, boosting stock price.
Tesla’s stock closed up 1.53 USD (0.43%) at 358.43 USD.
After experiencing a 50% drop earlier this year, Tesla has been on an upward trajectory, fueled by optimism over Musk’s renewed focus on management and the upcoming launch of its robotaxi service next month. These positive developments have narrowed the stock’s year-to-date decline to about 11%.
Apple’s stock fluctuated in response to the court’s decision on Trump’s tariffs.
Initially, Apple shares climbed 1.7% to 203.78 USD following the lower court’s ruling that invalidated Trump’s reciprocal and fentanyl retaliatory tariffs.
However, the stock reversed course after the appeals court granted a stay, allowing the tariffs to remain in effect during the appeal process.
Apple ultimately closed down 0.47 USD (0.23%) at 199.05 USD.
Alphabet also finished lower, dipping 0.42 USD (0.24%) to 172.96 USD.
All the other M7 stocks posted gains.
Amazon rose 0.98 USD (0.48%) to 205.70 USD, Microsoft added 1.32 USD (0.29%) to reach 458.68 USD, and Meta Platforms climbed 1.47 USD (0.23%) to close at 645.05 USD.
Meanwhile, AI startup C3.ai saw its stock skyrocket by 21% following better-than-expected fourth-quarter revenue and lower-than-anticipated losses. C3.ai shares surged 4.78 USD (20.76%) to 27.80 USD.
