Hello investors,
On Thursday, May 29, 2025, U.S. stock markets ended the session higher, boosted by strong earnings from AI-related companies and renewed optimism surrounding potential tariff relief. Here’s how the major indexes performed:
- Nasdaq: 19,175.87 (+0.39%)
- S&P 500: 5,912.17 (+0.40%)
- Dow Jones: 42,215.73 (+0.28%)
- USD/KRW: ₩1,372.00 (-0.22%)
🔍 Key Market Highlights
1. 🧠 NVIDIA Beats Estimates on Robust AI Demand
NVIDIA posted Q1 EPS of $0.96, beating market expectations of $0.93.
Strong demand for AI chips and solid data center growth contributed to the positive surprise, fueling confidence across the broader tech sector.
2. ⚖️ Trump-Era Tariffs Partially Struck Down
The U.S. Court of International Trade ruled that a significant portion of tariffs imposed under former President Trump exceeded executive authority.
This decision temporarily halts some tariffs, with the Biden administration expected to appeal. Market participants welcomed the decision as a sign of possible tariff relief.
3. 📉 U.S. Q1 GDP Contracts by 0.2%
U.S. GDP shrank by an annualized -0.2% in Q1, marking the first contraction in nearly three years.
The decline was driven by a slowdown in consumer spending and a wider trade deficit.
4. 📉 Corporate Profits Post Largest Drop Since 2020
U.S. corporate earnings fell by $118.1 billion in Q1, the sharpest quarterly decline since 2020.
Rising costs from tariffs and waning demand were key contributors to the profit slump.
5. 🧾 Jobless Claims Rise, Labor Market Shows Signs of Cooling
Initial jobless claims rose more than expected last week, suggesting the labor market may be starting to cool.
However, mass layoffs have yet to materialize, and overall labor conditions remain relatively firm.
📅 Upcoming Events to Watch
- May 30 (Fri): Personal Consumption Expenditures (PCE) Price Index – key inflation gauge
- Early June: FOMC meeting – interest rate outlook in focus
- Mid-June: Start of Q2 earnings season
🔮 Market Outlook & Investment Strategy
- Tech-led Rally Likely to Continue: With NVIDIA’s strong results and sustained AI demand, tech stocks are likely to lead further gains.
- Tariff Developments Worth Monitoring: The recent court ruling could pave the way for trade normalization, but policy responses could reintroduce uncertainty.
- Caution Over Economic Indicators: The GDP contraction and rising jobless claims hint at softening economic momentum, which could affect sentiment.
- Watch for Monetary Policy Signals: The next FOMC meeting will provide vital clues on rate cuts or continued tightening—crucial for all asset classes.
📝 Final Thoughts
U.S. markets climbed on Thursday, buoyed by NVIDIA's strong performance and tariff-related legal developments. While optimism persists in the tech sector, macroeconomic headwinds and policy uncertainty remain. As always, stay informed and balanced in your investment decisions.