US indices on the rise: Nvidia is rising despite tariff fears!

US indices on the rise: Nvidia is rising despite tariff fears!

On May 29, 2025, the US stock markets can look back on a mixed trading day. Most major indexes closed higher on Thursday despite uncertainty caused by tariffs on imports from Canada and Mexico. A federal court initially blocked most of the tariffs imposed by President Donald Trump, but an appeals court reinstated those tariffs this afternoon. Reuters reports that these developments affected both the markets and specific stocks such as Nvidia's.

Nvidia shares showed a surprising development: After the publication of impressive quarterly figures, shares fell by almost 10 percent on Monday, a trend that continued on Tuesday. This is due to the uncertainties surrounding tariffs, increasing competition from China and a general unease in the markets. Nvidia has lost 16 percent of its value since the beginning of the year, although the company is considered rock solid and analysts remain optimistic. Stock exchange online points out that Nvidia's CFO emphasizes that the tariffs are an unknown because some of their systems are manufactured in Mexico.

Market development and sector performance

Despite the challenges, Nvidia shares rose more than 3 percent on Thursday after reporting strong sales figures. However, the semiconductor industry as a whole was subdued, with the Philadelphia semiconductor index SOX only up 0.5 percent. Almost all sectors of the S&P 500 closed higher, with defensive groups such as real estate and utilities posting the biggest gains. Real estate topped the list, up about 1 percent, while communications services fell 0.35 percent and remained the only group in the red.

In the US government bond market, the yield on 10-year bonds fell from a daily high of 4.539 percent to 4.43 percent. Current trends suggest the Nasdaq IXIC is up 9.9 percent and the S&P 500 is up 6.2 percent in May. Both indices are on track to post their biggest monthly gains since November 2023.

Outlook and expectations

Next week, the April PCE report is expected, which forecasts a 0.1 percent month-on-month increase in the PCE price index. Year-on-year, a decline from 2.3 percent to 2.2 percent is expected. These economic indicators could be crucial for the further development of both markets and specific sectors such as semiconductors. Analysts therefore recommend not selling Nvidia shares in a panic, as it is expected that the AI ​​sector could gain momentum from upcoming quarterly results from other companies.

The majority of analysts remain optimistic about Nvidia's future performance, with Bernstein Research's price target set at $185, representing an upside opportunity of over 60 percent. Nvidia CEO Jensen Huang recently expressed optimism about demand for new products, particularly the Blackwell series and the coming quarter.