Dow futures jump 400 points as court blocks Trump tariffs, Nvidia posts earnings beat: Live updates

Futures surged Wednesday night as a federal court knocked down President Donald Trump’s “reciprocal” tariffs. Solid earnings from artificial intelligence heavyweight Nvidia also buoyed the market.

Futures tied to the S&P 500 rose 1.5%, while Nasdaq 100 futures gained 1.8%. Dow futures added 485 points, or about 1.2%.

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

The April 2 announcement of Trump’s duties, the president’s constantly 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. For now, the judges’ decision appears to have allayed investors’ worries.

Elsewhere, Nvidia shares jumped nearly 5% in after-hours trading. 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, as 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,” said James Demmert, chief investment officer of Main Street Research.

Stocks are coming off of a lackluster session Wednesday. The S&P 500 ended the day almost 0.6% lower, while the tech-heavy Nasdaq Composite lost 0.5%. The Dow fell nearly 245 points, or 0.6%.

Major U.S. indexes are on track to close the week—and month—higher. The S&P 500 and 30-stock Dow are up 1.5% and 1.2% this week, respectively, while the Nasdaq has rallied nearly 2%. 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 5.7%. The Dow has added 3.5%, while the Nasdaq has jumped 9.5%.

The surge in stocks 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.

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