FX.co ★ US Stocks Cut Some Gains

On Thursday, both the S&P 500 and the Nasdaq saw their earlier gains diminish but still managed to close in the positive, advancing by 0.4% and 0.7%, respectively. In contrast, the Dow Jones hovered close to the unchanged line. Nvidia's stock jumped over 4%, buoying market sentiment after the company posted strong earnings and provided an optimistic forecast for the current quarter. The CEO emphasized that the AI computing sector is poised for "exponential growth." Elsewhere, initial enthusiasm from a US Court of International Trade decision—ruling that President Trump exceeded his authority by implementing reciprocal tariffs and instructing the administration to cease their collection—diminished as investors considered the potential for the administration to pursue different legal strategies to uphold its trade agenda. Economically, the second estimate indicated that the US GDP shrank by 0.2% in Q1, a slight improvement from the preliminary estimate of a 0.3% contraction. Nonetheless, corporate profits declined by 3.6%.