As a court rejects Trump tariffs, the S&P 500 rises, and the Nasdaq soars following Nvidia's impressive performance: Real-time updates

Following the overturning of President Donald Trump's "reciprocal" tariffs by a federal court and a post-earnings surge in Nvidia shares, stocks rose on Thursday.

The S&P 500 saw a 0.8% increase. The Nasdaq Composite returned to positive territory for the year with a 1.5% gain. Due to a more than 5% decline in Salesforce after earnings, the Dow Jones Industrial Average increased by 78 points, or 0.2%.

On Wednesday evening, the U.S. Court of International Trade declared that Trump had overreached himself in enforcing his "reciprocal" tariffs. The court mandated the revocation of the contested tariff orders.

Markets were agitated last month by Trump's shifting stance on trade policy and inflation concerns stoked by the possibility of the tariffs. Due to uncertainties around trade policy and the effect on consumers, some businesses have also lowered their projections and emphasized the taxes. Shortly after its announcement in early April, Trump reversed his first tariff strategy.

"The administration's rhetoric on tariffs is tougher than its actual policy on tariffs," stated Paul Stanley, Granite Bay Wealth Management's chief investment officer. "That is contributing to the upward movement of stocks."

The justices' ruling seems to have calmed investors' concerns for the time being. This development, meanwhile, may also give rise to worries that trade talks between the United States and other nations may drag on later in the year than expected.

Following earnings, Nvidia shares surged by almost 5%. The chipmaker's data center division saw a 73% year-over-year gain in the first quarter, exceeding both top and bottom line projections.

"The Nvidia earnings release on Wednesday is crucial for the whole stock market, not just for Nvidia," stated James Demmert, chief investment officer at Main Street Research. "It can boost market confidence generally and assist investors in concentrating on the potential of AI rather than Washington headlines about taxes and tariffs."

The main U.S. indexes are expected to end the week — and month — higher, despite stocks recovering from a dreary session on Wednesday. This week, the Nasdaq has risen 3%, while the S&P 500 and 30-stock Dow are up 2.2% and 1.3%, respectively. Big Tech giant Alphabet's AI developments propelled the tech sector's more than 10% May increase.

The S&P 500 has increased by 6% this month. The Nasdaq has increased 11%, and the Dow has increased 3.6%.

This development follows President Donald Trump's Sunday retraction of his June 1 deadline to impose a 50% tariff on the European Union, forcing the date to be moved to July 9. Despite the fact that investors applauded the news, Trump's tariffs have drawn criticism due to their unpredictable impact on markets.