5 things to know before the stock market opens Thursday

29 May 2025 18:28

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Economics
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5 things to know before the stock market opens Thursday

Source: CNBC

Five things to know before the stock market opens Thursday, News.az reports.

1. On the rise

Stock futures were higher after a federal trade court struck down President Donald Trump’s so-called “reciprocal tariffs” Wednesday evening. The decision appeared to appease investors, who had been roiled by the president’s ever-changing trade policy since he announced the steep duties on April 2. Positive earnings results from Nvidia also helped to lift stocks, with futures tied to the Dow Jones Industrial Average up around 200 points, or 0.5%, before the bell Thursday. S&P 500 futures, meanwhile, rose about 1.1% and Nasdaq 100 futures climbed 1.6%. Follow live market updates.

2. Tariffs, trumped

U.S. President Donald Trump delivers remarks on tariffs in the Rose Garden at the White House in Washington, D.C., U.S., April 2, 2025. REUTERS/Carlos Barria

Source: Carlos Barria | Reuters | U.S. President Donald Trump delivers remarks on tariffs in the Rose Garden at the White House in Washington, D.C., U.S., April 2, 2025.

A three-judge panel on the Court of International Trade dealt a major blow to Trump’s trade agenda Wednesday evening, ruling that the president exceeded his authority by unilaterally imposing his reciprocal tariffs. Finding that the 1977 law Trump invoked to impose his sweeping tariffs does not actually give him the power to do so, the court ordered a permanent halt to the duties and barred any future modifications. The ruling affects the reciprocal tariffs Trump levied against more than 180 countries and territories, as well as the tariffs levied against Canada, Mexico and China related to drug trafficking. Existing tariffs on specific products like aluminum and steel are not impacted. The Trump administration has 10 days to make the changes mandated by the judges’ ruling, which the administration has already appealed.

3. Curb your enthusiasm

Jensen Huang, co-founder and chief executive officer of Nvidia Corp., during the Computex conference in Taipei, Taiwan, on Tuesday, May 20, 2025. Computex kicked off Monday in Taipei, and as in years past will draw industry chieftains from and Huang Qualcomm Inc.'s Cristiano Amon to Young Liu of Foxconn, which makes the bulk of the world's iPhones and Nvidia servers. Photographer: Annabelle Chih/Bloomberg via Getty Images

Jensen Huang, co-founder and CEO of Nvidia, during the Computex conference in Taipei, Taiwan, on May 20, 2025.

Annabelle Chih | Bloomberg | Getty Images

In one of the most closely watched earnings reports of the season, chipmaker Nvidia beat Wall Street’s top- and bottom-line expectations Wednesday, reporting a 73% jump in data center sales year-over-year. The AI darling’s sales forecast of $45 billion for the current quarter was slightly below LSEG estimates, but the company said its guidance would have been $8 billion higher if it weren’t for losses from export curbs on its H20 chips. CEO Jensen Huang emphasized the effect of the chip controls on the earnings call, telling analysts that the ”$50 billion China market is effectively closed to U.S. industry.” Still, revenue rose 69% from the same period last year. Shares of Nvidia were more than 5% higher Thursday morning on the results, which sparked a rally in global semiconductor stocks.

4. Minute by minute

WASHINGTON, DC - MAY 15: Federal Reserve Chair Jerome Powell speaks at the Thomas Laubach Research Conference held by the Federal Reserve Board of Governors on May 15, 2025 in Washington, DC. Powell has been getting criticized by U.S. President Donald Trump after the Federal Reserve released a statement last week holding interest rates steady at 4.25%-4.5%. (Photo by Andrew Harnik/Getty Images)

Photo: Andrew Harnik | Getty Images |Federal Reserve Chair Jerome Powell speaks at the Thomas Laubach Research Conference held by the Federal Reserve Board of Governors on May 15, 2025 in Washington, DC.

At the Federal Reserve’s meeting earlier this month, officials worried that Trump’s tariffs could aggravate inflation and force them to make “difficult tradeoffs,” minutes released Wednesday showed. “Participants agreed that uncertainty about the economic outlook had increased further, making it appropriate to take a cautious approach until the net economic effects of the array of changes to government policies become clearer,” the minutes said. The Fed kept its benchmark interest rate steady in a range between 4.25%-4.5% — where it has been since December — with officials noting that the central bank was “well positioned to wait for more clarity on the outlooks for inflation and economic activity.”

5. True Belieber

LONDON, ENGLAND - MAY 17: Hailey Bieber attends the Rhode UK launch party with Hailey Bieber at Chiltern Firehouse on May 17, 2023 in London, England. (Photo by Dave Benett/Getty Images for Rhode)

Photo: Dave Benett | Dave Benett Collection | Getty Images | Hailey Bieber attends the Rhode UK launch party with Hailey Bieber at Chiltern Firehouse on May 17, 2023 in London, England.

E.l.f. Beauty is buying Hailey Bieber’s beauty brand Rhode in a deal worth as much as $1 billion, the company announced Wednesday. The acquisition — E.l.f.’s largest ever, according to FactSet — reflects the cosmetic company’s push deeper into skincare: Rhode was the top skincare brand in earned media value last year. Bieber will serve as Rhode’s chief creative officer and head of innovation as part of the deal, which is expected to close later this year. E.l.f also reported earnings results for its fourth quarter Wednesday, beating estimates on the top and bottom lines. The company did not offer guidance, though, due to tariff uncertainty. Shares of E.l.f. initially fell on the announcements but were back up more than 9% before the bell Thursday.

News.Az