Court rulings on tariffs and economic news overshadowed the positive NVIDIA report

NVIDIA (NVDA 139.18, +4.37, +3.2%) was supposed to be the main newsmaker of the session after publishing an impressive quarterly report and forecast; however, the attention of market participants was shifted to court decisions regarding the tariff policy of the Trump administration, as well as weak macroeconomic statistics, which increased concerns about a slowdown in economic growth.

First, the US Court of International Trade ruled that President Trump does not have the legal authority to impose reciprocal tariffs. The White House promptly filed an appeal and closer to the evening, it became known that the US Court of Appeals had temporarily upheld the lawsuit, allowing the current tariffs to remain in force: 10% on global supplies, 30% on goods from China, and 25% on Canada and Mexico.

The administration has been given until June 9 to provide arguments on the case. These contradictory decisions have brought uncertainty to trading, holding back both buying and selling.

Additional pressure was exerted by a batch of weak economic data: the revised value of US GDP for the first quarter showed a decrease in consumer spending; the number of people continuing to receive unemployment benefits reached its maximum since November 13, 2021; deferred home sales in April decreased by 6.3%.

These data triggered a reversal in the bond market: yields on 10–year and 30–year securities, which reached 4.53% and 5.03%, respectively, fell to 4.43% and 4.93% by the end of the session. The bond market was also supported by strong demand for the placement of 7–year securities worth $44 billion.

The US dollar index fell 0.5% to 99.39, despite overnight gains of 0.7%. The drop in yields did not cause a strong rally in the stock market, as the rate cut was driven by concerns about a slowdown in growth. These concerns intensified after Best Buy (BBY 66.32, -5.20, -7.3%) cut its forecast for fiscal year 2026, and Salesforce (CRM 266.92, -9.11, -3.3%) reported a slowdown in the growth of key cloud segments.

Nevertheless, NVIDIA‘s results and optimism around AI have supported the market. The S&P 500 index dropped to 5,873 points, but then regained its decline and ended the day above 5,900. Of the 11 S&P 500 sectors, 10 ended the day in positive territory, although none gained more than 1%. The real estate sector became the leader (+0.9%), while the information technology sector made the main contribution (+0.6%). The only sector with negative dynamics was communication services (-0.3%).

Despite the modest growth of the indices, the market breadth indicated a positive mood: on the New York Stock Exchange, the number of rising stocks more than doubled the number of falling stocks, on the Nasdaq – by about a ratio of 13 to 9.

Our American FTinvest 11 portfolio has mostly followed the market today, sometimes lagging behind, sometimes slightly overtaking the benchmark. As a result, it closed with an increase of 0.34% to the level of 743.98.