Trump’s Tariff Move Just Threw a Wrench Into the Market – What Happens Now?
U.S. stock futures are showing mixed movement on Thursday morning after Nvidia delivered yet another blockbuster earnings report. While the S&P 500 and Nasdaq futures are slightly up, the Dow Jones Industrial Average is dipping a bit, signaling a split reaction across the market.
Nvidia’s Blowout Quarter and AI Boom
Nvidia just dropped one of its strongest earnings reports yet, with revenue soaring 78% year-over-year to $39.33 billion, crushing Wall Street’s expectations. This performance solidifies its dominance in the AI chip market and reassures investors that demand for artificial intelligence hardware is still going strong.
The company’s stock jumped over 2% in premarket trading after CEO Jensen Huang highlighted the overwhelming demand for Nvidia’s new AI chip, Blackwell. The report calmed fears that AI spending might be slowing down, as some had speculated in recent weeks.
Tech Stocks Ride Nvidia’s Wave
Other tech stocks are experiencing some good momentum in the wake of Nvidia’s impressive announcement. In premarket trade, chipmakers such as AMD and Broadcom are rising. Even two of Nvidia’s largest clients, Microsoft and Meta, have slightly recovered after experiencing difficulties earlier this month.
Investor confidence in the AI boom and its ongoing influence on the market is demonstrated by the spike in tech equities.
Economic Reports and Trade Policy in Focus
While Nvidia’s earnings are a big deal, investors are also keeping an eye on key economic data coming later today. The Commerce Department’s GDP report and the Labor Department’s jobless claims update will provide insight into how strong the U.S. economy really is.
Adding to market uncertainty is former President Donald Trump’s announcement of a new 25% tariff on European Union imports. The move could spark fresh trade tensions and impact global supply chains, leaving investors wondering how it might affect corporate earnings in the months ahead.
What’s Next for the Market?
Nvidia’s success is a positive sign for the tech industry, but broader market uncertainty remains. Between trade tensions, economic reports, and potential shifts in Federal Reserve policy, the stock market could see some choppy movement in the coming weeks.
For now, all eyes remain on how tech stocks continue to react and whether Nvidia’s strong momentum can keep the AI-fueled rally alive.
