On the 29th (local time), the New York Stock Exchange started off with an upward trend as expectations for tariff reductions rose amid a halt to President Donald Trump’s ‘reciprocal tariff’ policy. The strong performance of semiconductor leader NVIDIA also boosted investor sentiment.
As of 9:42 a.m. on that day, the Dow Jones Industrial Average on the New York Stock Exchange (NYSE) rose by 82.48 points (0.20%) to 42,181.18, the S&P 500 index increased by 39.83 points (0.68%) to 5,928.38, and the Nasdaq index gained 208.66 points (1.09%) to 19,309.59.
On the previous day, the U.S. Court of International Trade (CIT) ruled that President Trump’s ‘reciprocal tariff’ was an action that exceeded presidential authority and deemed it invalid. The reciprocal tariff policy entails imposing tariffs at the same level on the counterpart country due to trade deficit concerns. Although President Trump withdrew the policy after announcing it in early April due to controversy, some corporations adjusted their performance outlook downward due to concerns over expense burdens and decreased consumption stemming from the tariffs.
Analysts noted that the court’s decision positively impacted expectations for tariff reductions on the stock market. Paul Stanley, Chief Investment Officer (CIO) of Granite Bay Wealth Management, said, ‘While the administration’s rhetoric is strong, actual policies are becoming increasingly moderate,’ adding that ‘this discrepancy is actually beneficial for the market.’
In its fiscal year first-quarter earnings announcement, NVIDIA reported both revenue and net income that exceeded market expectations. The core institutional sector of the data center grew by 73% compared to the same period last year, driving the rise in stock prices.
James Demmert, CIO of Main Street Research, mentioned, ‘This NVIDIA performance could be a significant trigger that affects the entire stock market beyond individual corporations,’ and added that ‘reinvigorated expectations for AI potential have refocused investor interest on technological innovation rather than on tariff or tax issues.’
By sector on that day, technology (+1.4%) and consumer discretionary/real estate (+0.9%) led the upward trend, while consumer staples and industrials fell by 0.2% each.
By stock, Elf Beauty surged 29% following strong first-quarter earnings and news of acquiring the skincare brand ‘Rhode.’ Conversely, U.S. electronics giant Best Buy lowered its annual guidance due to tariff uncertainties, resulting in a 6% drop, while global PC and printer company HP saw its stock fall by 8% due to disappointing earnings.
European stocks showed a mixed trend. The Euro Stoxx 50 index rose by 0.06%, and France’s CAC 40 index increased by 0.14%. However, Germany’s DAX index fell by 0.21%, and the UK’s FTSE index dropped by 0.08%.
International crude oil prices turned lower. The price of West Texas Intermediate (WTI) for July delivery decreased by 0.94% to $61.26 per barrel, while Brent crude fell by 0.89% to $64.32.