Where Are Markets Today?
U.S. and European stock futures are experiencing significant gains. This upward momentum is primarily driven by two key developments: a U.S. federal court ruling that invalidated President Donald Trump’s “reciprocal” tariffs and robust earnings reported by artificial intelligence leader Nvidia.
In the United States, futures tied to major indices are on the rise. S&P 500 futures have increased by 1.6%, Nasdaq 100 futures have gained 2%, and Dow Jones Industrial Average futures have added 511 points, or 1.2%. This surge follows the U.S. Court of International Trade decision that President Trump overstepped his authority by imposing broad import tariffs, leading to the nullification of these tariffs. The court’s ruling is seen as a move towards reducing trade tensions and restoring investor confidence.
European markets are also responding positively. Futures for the Euro Stoxx 50 and other major European indices are trading higher, buoyed by the same factors influencing U.S. markets. The anticipation of eased trade restrictions and the positive ripple effects from strong U.S. corporate earnings are contributing to the optimism in European markets.
Two primary reasons underpin this bullish sentiment: First, the legal reversal of tariffs—the court’s decision to block the implementation of the “reciprocal” tariffs removes a significant source of uncertainty for global trade. By deeming these tariffs unlawful, the ruling alleviates concerns about escalating trade wars, which had previously dampened market sentiment. Second, strong corporate earnings—Nvidia’s impressive earnings report has further fueled market enthusiasm. The company’s performance, driven by advancements in artificial intelligence and data center demand, underscores the resilience and growth potential within the tech sector. This has had a cascading effect, boosting confidence across various industries and markets.
Major Index Performance as of May 29, 2025
- S&P 500: Trading at 5,877.73, down 0.56% on the day.
- Nasdaq Composite: At 15,218.91, lower by 0.42% amid tech weakness.
- Dow Jones Industrial Average: At 39,142.42, slipping 0.57% after a three-day rally.
- Russell 2000: Trading at 2,051.51, down 1.05%, reflecting continued pressure on small caps.
The Magnificent Seven and the S&P 500
The “Magnificent Seven”—Apple, Microsoft, Amazon, Alphabet, Nvidia, Meta, and Tesla—are under pressure as investors reprice elevated valuations in the face of softer guidance and geopolitical risk. Nvidia, despite a blockbuster Q1, warned of an $8 billion hit from China-related restrictions, while Tesla continues to face margin erosion and EV demand uncertainty.
While the S&P 500 has risen 19% from its April low, broad participation remains thin. Average member drawdowns are still steep, with many components down over 20% from year-to-date highs. The index’s heavy reliance on a handful of tech names leaves it vulnerable to any pullback in sentiment toward AI and mega-cap growth. The Nasdaq 100 index, also known as US 100 CFD index is also an important stock index to keep an eye.