MARKET WRAP

Stocks gapped higher at the open today, fueled by Nvidia’s strong earnings beat and a federal court decision temporarily blocking most of the proposed tariffs. But the enthusiasm cooled fairly quickly and some stocks came under pressure. Despite that, both Nvidia, and the broader market finished with gains. On the day: SPX +0.4%, QQQ, +0.2%, and IWM +0.3%. 

The 10YY was lower, now 4.43%. Oil pulled back while gold was a tad higher. DXY was lower, now $99.36.

After hours: DELL is higher by about +5%. The company missed on EPS but beat on revs and raised guidance. COST is higher by +1%, MRVL is lower by about -2%.

• MRKT Call: Guy and Dan on today’s gap higher and fade on NVDA earnings and the tariff ruling. Looking at Russell 2k strength vs higher interest rates, a check in on sector performance via SoFi’s weekly report, and more.

• RiskReversal Pod: Coverage of the legal battle over the tariffs, discussions on Nvidia earnings, Salesforce, Best Buy and more.

MRKT MATRIX: TODAY’S TOP STORIES

• S&P 500 climbs on strong Nvidia earnings, but trade policy confusion caps gains (CNBC)

• Trump Trade Strategy Roiled by Court Blocking Global Tariffs (Bloomberg)

• Nvidia Eases Concerns About China With Upbeat Sales Forecast (Bloomberg)

• U.S. to Revoke Visas of Chinese Students (WSJ)

• OPEC+’s Real Oil Supply Hikes Could Be Less Than Advertised (Bloomberg)

• Foxconn Reassures Shareholders Amid Cloudy Outlook (WSJ)

• Microsoft Shares Go From Laggard to Leader as AI Growth Improves (Bloomberg)

• Elon Musk thanks Trump, says he’s leaving government work with DOGE (CNBC)

• United and JetBlue Form Alliance to Sell Seats on Each Other’s Flights (WSJ)

• Best Buy cuts full-year sales and profit guidance as tariffs raise cost of electronics (CNBC)

WHAT’S NEXT?

Today’s early enthusiasm faded fast. Sellers stepped in almost immediately, and the S&P 500 ended the day up just about 0.4% — holding onto about a half of the morning’s initial gains.

The fading rally could be a sign of buyer fatigue, especially after a stretch of headline-driven surges. Nvidia’s report was undeniably strong, but the stock had already run up significantly into the print, and was only able to add about +3% in gains by the end of the day. More telling was the action in the broader market — many AI-adjacent names and tech stocks that spiked alongside Nvidia gave back much of their gains intraday.

As for the tariff news, the court ruling was almost immediately considered a temporary reprieve by trader, with further legal challenges and potential administrative workarounds still looming. Markets may be growing desensitized to these types of trade headlines and they were proven true by the end of the day with a temporary hold placed on the ruling.

This action today isn’t some scary bearish reversal, the market did finish in the green. But the reaction suggests any further upside is likely to be a grind, not a sprint, as most bullish headlines one could foresee have already come in some shape or form, even if partial or incomplete. The good thing for those looking for new highs is it wasn’t exactly like day turned into a total head fake, it just wasn’t the surge it looked like initially.

No big earnings reports tomorrow but a couple of economic prints to watch in the morning:

Friday May 30

• 8:30am - PCE

• 9:45am - Chicago PMI

• 10am - UM Consumer Sentiment

Expected move: SPX 0.8%

TODAY’S EPISODES

Watch MRKT Call’s newest episode: Nvidia Earnings Lift S&P 500 Higher

• Analysis: NVDA, AVGO, MRVL, SPX, US10YY, DXY, TLT, USDJPY, RUT, IWM, DELL, HPQ

• SoFI Report: Gains by sector, Oil grinding higher?, bullish/bearish sentiment

• Your Questions Answered:

  • If yields remain firm isn’t the Russell strength a bit tenuous?

  • Outside of NVDA why is the market up on the tariff news?

  • Guy, can you update your take on NEM?

  • What happens when the US can no longer service the debt?

Learn more about our sponsor, SoFi.

Watch RiskReversal Podcast’s newest episode: Tariffs Blocked In Court... What's Next?

Guy Adami and Dan Nathan discuss the recent court ruling deeming tariffs illegal and its potential repercussions on the market. They examine the administration's likely response and reflect on President Trump's handling of trade policies and their impact on various sectors. The hosts then focus on Nvidia's earnings and its significant influence on market sentiment, discussing the broader implications for the semiconductor sector and tech stocks. They also touch on other company performances, including Salesforce and Best Buy, and analyze upcoming economic reports like the jobs number. The episode highlights the complexity of the current financial landscape, emphasizing the importance of staying informed and cautious in light of ongoing trade tensions and economic uncertainties.

Learn more about our sponsor Betterment and RBC Capital Markets.

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