What’s behind the Nvidia rally? May 29th

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What’s behind the Nvidia rally?A big rally for stocks that began in Asia on Thursday is easing off the accelerator amid uncertainty about what will happen next after a U.S. court blocked many of President Donald Trump’s sweeping tariffs. The S&P 500 was 0.3% higher in afternoon trading after giving up most of an earlier gain. The Dow Jones Industrial Average was up 29 points, or 0.1%, as of 1:23 p.m. Eastern time, and the Nasdaq composite was 0.5% higher.

It’s a downshift after stocks initially leaped nearly 2% in Tokyo and Seoul, where markets had the first chance to react to the ruling late Wednesday by the U.S. Court of International Trade. It said that the 1977 International Emergency Economic Powers Act that Trump cited for ordering massive increases in taxes on imports from around the world does not authorize the use of tariffs.

The ruling raised hopes in financial markets that a hamstrung Trump would not be able to drive the economy into a recession with his tariffs, which had threatened to grind down on global trade and raise prices for consumers already sick of high inflation…

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