New York – may 16, 2024 – Markets experienced mixed results on Thursday, influenced by both positive and negative factors. The S&P 500 showed slight gains, while the Nasdaq also advanced, but trade policy uncertainty still plagued the market. A court ruling against former President Trump’s tariffs unsettled investor sentiment further.Recent market fluctuations are a sign that market performance is still fragile, so read on for expert analysis.
Market Gains Tempered by Trade Policy Uncertainty
New York-Thursday saw a mixed performance on Wall Street, with the S&P 500 managing a slight increase despite earlier highs.The Nasdaq Composite also advanced, though it too retreated from its intraday peak. The Dow Jones Industrial Average, however, remained nearly flat, influenced by a significant drop in salesforce shares following its earnings report.
Investor sentiment was further complicated by a federal court ruling against President Trump’s “reciprocal” tariffs, adding a layer of uncertainty to the market’s trajectory.
Nvidia’s Surge: A Luminous Spot
- Nvidia’s Performance: Shares of Nvidia experienced a significant surge, climbing more than 5% after the chipmaker’s first-quarter earnings exceeded expectations.
- Data Center Growth: The company’s data center business demonstrated robust growth, recording a 73% year-over-year increase.
James Demmert, chief investment officer of Main Street Research, noted that Nvidia’s strong report can rejuvenate investor optimism across the board and help investors to focus on the power of AI and less on headlines out of Washington on tariffs and taxes.
Tariff Turmoil: Court Ruling and Market Impact
The U.S. Court of International Trade’s decision to strike down President trump’s “reciprocal” tariffs has introduced new dynamics into the market. The court ruled that Trump overstepped his authority
when imposing these tariffs and ordered the challenged tariff orders to be vacated.
This ruling arrives after a period where inflation fears
and Trump’s evolving trade policies had already unsettled markets. Several companies had previously highlighted the levies
and adjusted their forecasts, citing uncertainty
around trade policy and its potential impact on consumers.
while the court’s decision may have eased some immediate concerns, it also raises the possibility that U.S. trade negotiations with foreign countries could be prolonged.
The tariff drama isn’t over. trump has other legal avenues to pursue an aggressive tariff agenda, and investors expect he will utilize them.
Adam Crisafulli, Vital Knowledge
Broader Market Trends
Despite a lackluster performance on Wednesday, the major U.S. indexes are poised to conclude the week and the month with gains. The S&P 500 is up 1.7% this week, while the Dow has increased by 1.2%. The nasdaq has seen a more substantial rally, climbing more than 2%.
- Monthly Gains: The S&P 500 has gained 6% this month.
- Dow’s Performance: the Dow has added 3.5%.
- Nasdaq’s surge: the Nasdaq has jumped close to 10%.
