TL;DR

US court blocks most Trump tariffs; Nvidia tops $3.45T after strong earnings; Q1 GDP contracts.

Highlights

• U.S. Court of International Trade blocks most Trump-era tariffs, suspending 10% baseline and higher duties on China, Mexico, and Canada; White House plans Supreme Court appeal 112.
• S&P 500 and Nasdaq rise, led by Nvidia ’s 6% gain after $44B Q1 revenue; Nvidia becomes world’s most valuable company at $3.45T market cap 23.
• Nvidia warns of $8B sales impact next quarter from U.S. chip export controls to China; CEO Huang plans up to $850M in share sales by year-end 214.
• U.S. Q1 GDP contracts 0.2% as imports surge ahead of tariffs; corporate profits fall 2.9%, largest drop since 2020; core PCE inflation at 3.4% 515.
• Fed Chair Powell meets Trump, reiterates Fed independence; Chicago Fed’s Goolsbee says tariff removal could allow rate cuts from 4.25%-4.5% range 413.
• Pending home sales fall 6.3% in April, signaling further housing market weakness 19.
• Supreme Court narrows NEPA reviews, clearing Utah oil railway and likely expediting major infrastructure projects 6.
• Boeing to resume jet deliveries to China in June, targets higher 737 MAX and 787 output 8.
• FAA staffing crisis leads to Newark flight caps, United Airlines losses, and nationwide AI safety rollout after fatal crash 9.
• U.S. revokes 277,000 Chinese student visas, including Harvard students; China protests, escalating U.S.-China tensions 10.
• House introduces bipartisan CLARITY Act to clarify CFTC/SEC roles in digital asset regulation; markup set for June 10 11.
• Israel and Hamas agree to 60-day Gaza ceasefire and partial hostage deal, brokered by U.S. envoy 7.

Commentary

Equity markets are closing higher, with risk sentiment buoyed by the trade court’s decision to block most of the Trump administration’s tariffs 12. This move eased immediate concerns for multinationals and importers, particularly those with exposure to China, Mexico, and Canada 1. However, the administration’s intent to appeal to the Supreme Court keeps policy uncertainty elevated, and traders should monitor for any late-session headlines on this front 12.

Tech outperformed, led by Nvidia ’s strong results and guidance, which propelled the company to the top of global market cap rankings 23. Despite a warning of an $8B hit from U.S. chip export restrictions to China, the market focused on robust data center growth and overall demand for AI infrastructure 23. Other large-cap tech names, including Amazon and Apple , also saw gains 2. Boeing ’s planned resumption of jet deliveries to China provides a positive catalyst for industrials 8.

Macro data remains weak: Q1 GDP shrank 0.2% on a surge in pre-tariff imports, and corporate profits saw their largest decline since 2020 515. Core PCE inflation remains above target, while pending home sales fell sharply, pointing to continued housing market softness 519. Fed officials, including Powell and Goolsbee, reaffirmed a data-driven approach and suggested that tariff relief could reopen the door to rate cuts, but the policy path remains dependent on upcoming data 413.

Elsewhere, the Supreme Court’s NEPA ruling is likely to accelerate approvals for energy and infrastructure projects, a tailwind for related sectors 6. The FAA’s staffing and technology crisis continues to disrupt air travel, particularly for United Airlines 9. U.S.-China tensions are in focus after mass student visa revocations and ongoing chip export controls, potentially affecting select sectors and cross-border flows 102. The bipartisan CLARITY Act marks progress on digital asset regulation, relevant for crypto and fintech names 11. The Israel-Hamas ceasefire may reduce near-term geopolitical risk in energy markets 7.

Watch for late-session volatility tied to trade policy headlines, Fed commentary, and sector rotation as traders position ahead of key macro and policy events.