Stock market today: Live updates

Stocks advanced on Thursday after a federal court knocked down President Donald Trump’s “reciprocal” tariffs and as Nvidia shares staged a post-earnings rally.

The S&P 500 climbed 0.8%. The Nasdaq Composite advanced 1.5%, bringing it back in positive territory for the year. The Dow Jones Industrial Average gained 78 points, or 0.2%, weighed down by a slide of more than 5% in Salesforce following earnings.

The U.S. Court of International Trade ruled on Wednesday night that Trump overstepped his authority when he imposed his “reciprocal” tariffs. The court ordered that the challenged tariff orders be vacated.

Trump’s changing approach toward trade policy, as well as inflation fears fueled by the prospect of the tariffs, roiled markets last month. Some companies have also highlighted the levies and dialed back their forecasts, pointing to uncertainty around trade policy and the impact on the consumer. Trump rolled back his original tariff policy shortly after its unveiling in early April.

“It’s becoming clear that the administration’s rhetoric on tariffs is tougher than its actual policies on tariffs,” said Paul Stanley, chief investment officer at Granite Bay Wealth Management. “That is helping to push stocks higher.”

For now, the judges’ decision appears to have allayed investors’ worries. However, this development can also raise concerns that U.S. trade negotiations with foreign countries could be drawn out into later in the year than previously anticipated.

Nvidia shares jumped more than 5%. The chipmaker exceeded expectations on the top and bottom lines in the first quarter, as its data center business recorded year-over-year growth of 73%.

“Wednesday’s Nvidia earnings report is pivotal not just for Nvidia but for the entire stock market,” said James Demmert, chief investment officer of Main Street Research. “It 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.”

Stocks are coming off of a lackluster session Wednesday, but the major U.S. indexes are on track to close the week — and month — higher. The S&P 500 and 30-stock Dow are up 2.2% and 1.3% this week, respectively, while the Nasdaq has rallied 3%. The tech sector has surged more than 10% in May, fueled by AI announcements from Big Tech player Alphabet.

This month, the S&P 500 has gained 6%. The Dow has added 3.6%, while the Nasdaq has jumped 11%.

This advance comes after President Donald Trump on Sunday walked back his threat to implement a 50% tariff on the European Union on June 1, delaying the date to July 9. Although investors cheered the news, critiques of Trump’s tariffs have emerged given their wild effect on markets.