English
Stock markets soar as US court blocks Trump tariffs & Nvidia beats estimates
There was yet more good news for investors last night as Nvidia beat forecasts in its latest earnings, while a US court struck down Trump’s sweeping tariffs.
Markets soar as US judges block tariffs
One of the less well noticed aspects of this US administration has been how many of its signature policies have been blocked by the courts. Donald’s Trump’s 2nd of April tariffs have become the most high-profile of these measures to be struck down by judges.
The US Court of International Trade has ruled that the president exceeded his authority in imposing sweeping tariffs. It means that the flagship tariff policy, which saw huge levies imposed on trading partners, was derailed for the time being.
It is important to note that the ruling doesn’t mean that the threat of tariffs has receded entirely. There are other ways that charges can be imposed, and the sector tariffs on cars and steel remain in place. The US administration is bound to appeal the decision too, which means investors aren’t completely free of worry yet.
But for markets, the news has been taken in a positive light. US futures rallied after hours, and Asian markets made gains too. European markets have opened higher, though they trimmed their initial gains.
US markets are expected to open firmly higher this afternoon. Given the outflow of funds from US markets in April, we can expect further upside in American stocks for the time being, as the news provides a further reason for investors to continue to allocate capital back to the US.
Nvidia soars after earnings
Jensen Huang has done it again. Another beat from Nvidia on revenue and earnings delivered even more positive news for the US stock market. Even the restrictions on exports to China failed to put more than a dent the company’s progress overall.
Artificial intelligence (AI) demand remains strong, and this is the cornerstone of the bullish narrative for Nvidia. The stock is up more than 30% from its April lows, but last night’s earnings and the court ruling appear to provide the foundation for further gains.
Connect with us
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Professional clients trading spread bets and CFDs can lose more than they deposit.
Options and futures are complex instruments which come with a high risk of losing money rapidly due to leverage. They’re not suitable for most investors. Before you invest, you should consider whether you understand how options and futures work, the risks of trading these instruments and whether you can afford to lose more than your original investment.
Trading stocks and shares ‘on margin’ within a US options and futures account – meaning that you only finance part of the cost of acquiring a position in a security – carries additional risks over buying securities on a fully funded basis and may result in losses exceeding your original investment. Trading on margin will also result in additional costs to you as the investor and any securities purchased using margin may be held as collateral by the lender, restricting both your rights as shareholder, and your ability to use the securities until the margin trade is closed. You should familiarise yourself with these risks before trading on margin.
The value of shares, ETFs and other ETPs bought through a share dealing account, a US options and futures account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results. Some ETPs carry additional risks depending on how they’re structured, investors should ensure they familiarise themselves with the differences before investing.
Share dealing and IG Smart Portfolio accounts provided by IG Trading and Investments Ltd, CFD accounts and US options and futures accounts are provided by IG Markets Ltd, spread betting provided by IG Index Ltd.
IG is a trading name of IG Trading and Investments Ltd (a company registered in England and Wales under number 11628764), IG Markets Ltd (a company registered in England and Wales under number 04008957) and IG Index Ltd (a company registered in England and Wales under number 01190902). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. IG Markets Ltd (Register number 195355), IG Trading and Investments Ltd (Register Number 944492) and IG Index Ltd (Register number 114059) are authorised and regulated by the Financial Conduct Authority.
The information on this site isn’t directed at residents of the United States, Belgium or any particular country outside the UK and isn’t intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
