🚫 Trump tariffs blocked as markets surge and earnings take centre stage
- NexxtGen Markets
- May 29
- 4 min read
Good morning, here's the latest Global Financial Markets update from Steve Halls at NexxtGen Markets here in the City of London.
Markets opened with a powerful rally following a landmark decision by a U.S. trade court to block Trump-era global tariffs, sparking widespread optimism. S&P 500 futures jumped +1.66%, the Nasdaq 100 surged +2%, and Dow Jones futures gained more than 600 points, up +1.42%.
At the heart of this rally: the court ruled that former President Trump had overstepped his authority under the International Emergency Economic Powers Act (IEEPA), effectively halting tariffs on Canada, Mexico, and China. The White House has appealed the ruling, but markets interpreted the development as a major de-escalation in global trade tensions.
📉 U.S. GDP confirms contraction – but the details matter
In macroeconomic news, the U.S. economy contracted by 0.3% in Q1 2025 – its first decline since 2022. However, the story behind the number is crucial. A surge in import volumes—driven by expectations of tariffs—widened the trade deficit. Still, domestic demand remained healthy: real final sales to private domestic purchasers grew by a robust 3.0%, suggesting underlying resilience.
Key implications for markets:
U.S. Dollar: Likely to firm on signs of underlying demand.
Treasury yields: May rise on growth optimism.
Gold and oil: Both sensitive to GDP data and inflation implications.
Equities: Particularly in consumer and tech sectors, could remain buoyant.
💥 Nvidia smashes expectations in blowout Q1
Nvidia (NVDA) delivered another monster quarter. Revenue soared to $44.1 billion, up 69% year-over-year, driven by a surge in AI-related data centre sales, which alone accounted for $39.1 billion—a 73% annual increase.
Adjusted EPS came in at $0.96, significantly beating expectations. The stock surged nearly 5% in after-hours trading.
Notably, Cathie Wood had purchased 34,000 shares ahead of earnings, reaffirming her bullish stance on AI. Her move paid off handsomely, with NVDA extending gains amid broader enthusiasm for generative AI and high-performance computing.
🧾 HP hit by tariffs and outlook downgrade
HP Inc. (HPQ) posted a mixed Q2 FY2025. While revenue rose 3.3% to $13.2 billion, earnings per share dropped to $0.71, missing expectations. Higher input costs due to U.S. tariffs and manufacturing adjustments weighed heavily.
Key takeaways:
EPS guidance lowered to $3.00–$3.30 from prior $3.45–$3.75.
HP is relocating some of its production away from China to mitigate geopolitical risk.
The stock fell 15%, with sentiment dented by macroeconomic uncertainty and trade-related cost pressures.
📊 Market movers: big swings on the tape
Some notable names making headlines:
GameStop (GME): Shares dropped 10.85% to $31.21 despite announcing a $500 million Bitcoin purchase. Investor scepticism around strategy remains.
Pensana (PRE.L): Gained 6%, trading at £38.04.
Oxford Nanopore (ONT.L): Fell 6%, closing at £124.
Altisource (ASPS): Down 1.93% to $6.04.
Meanwhile, Stellantis (STLA.US) appointed Antonio Filosa as CEO amid profit pressures and challenges in the U.S. market. Shares are down 27% YTD.
🧠 Chip stocks and China risk
ASML Holding shares have shed over $130 billion in value, driven by fears of expanded chip export controls. Analysts remain bullish long-term due to ASML’s monopoly on EUV lithography machines.
Meanwhile, Cadence and Synopsys initially fell on reports the White House is targeting sales to China, but both rebounded in after-hours trading.
🗓️ Today’s earnings calendar: spotlight on retail and tech
Markets are watching a heavy earnings slate, including:
After the Bell
Costco (COST): Analysts expect $63.1B revenue, EPS of $4.23.
Dell Technologies (DELL): Forecasted revenue $23.11B, EPS $1.68.
Marvell Technology (MRVL): Projected revenue $1.88B, EPS $0.61.
Zscaler (ZS): Estimated EPS $0.76, revenue $666M.
Ulta Beauty (ULTA): EPS forecast $5.75, revenue $2.78B.
UiPath (PATH): EPS expected $0.12, revenue $313.5M.
Before the Open
Best Buy (BBY): EPS $1.07, revenue $8.79B.
Kohl’s (KSS): EPS $0.04, revenue $3.36B.
Hormel Foods (HRL): EPS $0.34, revenue $2.92B.
🚀 Elon Musk steps away from DOGE
Elon Musk has stepped down from his advisory role in the Trump administration’s Department of Government Efficiency (DOGE). While Musk led notable cost-cutting initiatives, the programme fell short of its targeted $2 trillion in savings. His departure introduces further uncertainty about the future of government reform efforts.
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*All prices / quotes correct at the time of writing.
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