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U.S. stock futures surged on Thursday following a federal court's decision to strike down President Donald Trump's "reciprocal" tariffs and robust earnings from Nvidia. The tech-focused Nasdaq index rose by 1.4% in the premarket, with S&P 500 and Dow Jones Industrial Average futures gaining about 1% and 0.4% respectively.
In a blow to the President's tariff policy, a three-judge panel at the U.S. Court of International Trade ruled late Wednesday that congress, not the President, is responsible for imposing levies. This ruling halted Trump's tariffs on imports from Canada, Mexico, and China, which aimed to combat fentanyl entering the U.S. The White House has appealed the ruling.
Nvidia's shares jumped 6% in premarket trading after the chipmaker reported record first-quarter revenue that beat analysts' estimates. While its profit missed expectations due to export curbs, Nvidia's revenue surged 69% year-over-year to $44.06 billion. The company expects to take an $8 billion hit in the current quarter due to lost revenue from H20 sales to China.
Elon Musk, Tesla's CEO, announced an end to his government work, stating he will focus solely on the electric vehicle company and a few other ventures. Musk had been serving as the head of the Department of Government Efficiency. Tesla shares rose more than 2% in premarket trading following the announcement.
Salesforce also posted impressive results, beating analysts' expectations and lifting its full-year outlook. The cloud software giant raised its fiscal 2026 revenue and adjusted EPS forecast, citing strong demand for its AI products. Salesforce shares remained unchanged in premarket trading.
The rise in stock futures was also attributed to Bitcoin, which was trading near $109,000, and a slight increase in oil futures. Gold futures remained unchanged. The yield on the 10-year Treasury note stood at around 4.51%.
In related news, the U.S. agreed to suspend its 34% reciprocal tariff on China for 90 days, with China reciprocating. Both countries retained a 10% baseline tariff during this pause period. The 10% tariff remains in effect as a measure to encourage domestic production and protect American workers.
- In the premarket, Nvidia's shares surged 6% following the release of record first-quarter revenue that beat analysts' estimates, despite its profit missing expectations due to export curbs.
- On the technology front, Elon Musk, the CEO of Tesla, announced he will focus solely on the electric vehicle company and a few other ventures, marking an end to his government work as the head of the Department of Government Efficiency.
- Salesforce shares remained unchanged in premarket trading after the cloud software giant beat analysts' expectations and lifted its full-year outlook, citing strong demand for its AI products.
- The surge in U.S. stock futures was also attributed to Bitcoin, which was trading near $109,000, and a slight increase in oil futures, contributing to the positive sentiment in finance and business.
