Despite Weak GDP, Stocks Gain as Fed Bets Rise

A surge in the shares of the world’s largest technology firms, following Nvidia Corp.’s strong quarterly results, gave a boost to stock markets, which held their gains even after the release of new U.S. economic data. Meanwhile, investors also weighed the market implications of a new court decision that blocked parts of former President Donald Trump’s import tariffs.

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Stock futures climbed broadly, with S&P 500 futures gaining around 1%. Nvidia shares surged 5% after CEO Jensen Huang reassured investors concerned about China’s economic outlook. Huang emphasized that demand for AI-related computing remains strong and continues to grow at an “exponential” pace. His confidence helped calm market nerves, as Nvidia is seen as a bellwether for the broader tech sector and the AI-driven economic narrative.

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This optimism around Nvidia lifted sentiment across the technology industry and beyond. Nasdaq 100 futures rose 1.4%, while futures for the Dow Jones Industrial Average were up by 0.3%. The positive mood was further reflected in U.S. government bonds and the currency market.

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Treasury yields edged lower, with the 10-year yield slipping by one basis point to 4.47%, suggesting that investors are still seeking safety despite the equity rally. At the same time, the Bloomberg Dollar Spot Index declined 0.2%, indicating a softening in the greenback’s strength as risk appetite increased.

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Adding another layer of complexity to the market narrative was a ruling from a U.S. trade court that struck down parts of the import tariffs imposed by Trump during his presidency. These tariffs, known as reciprocal levies, were introduced in early April and have since been a source of considerable market volatility. Over the past several weeks, investor sentiment has swung wildly as a result of mixed signals surrounding trade policy, delays in implementation, and repeated back-and-forth over potential deals with trading partners.

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The court’s decision is the latest development in what has been a turbulent saga. While the ruling offers some relief to businesses and investors concerned about escalating trade tensions, it may not be the final word. The Trump administration quickly announced its intention to appeal the decision, which means the issue could eventually be taken up by an appellate court — or even reach the U.S. Supreme Court. That lingering uncertainty keeps trade policy in the spotlight as a key risk factor for markets.

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Despite these uncertainties, the market reaction has so far been positive. Investors appear to be focusing on strong corporate earnings, especially in the tech sector, as well as the resilience of demand for emerging technologies like artificial intelligence.

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Nvidia’s results, in particular, have helped to reinforce confidence in the sector’s future potential. CEO Jensen Huang’s comments suggesting that AI computing is just at the beginning of its growth trajectory seemed to provide the reassurance investors needed, especially after weeks of concern over slowing growth in China and other global economic headwinds.

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The rise in tech stocks is part of a broader theme that has been driving markets in 2025 — the growing role of artificial intelligence and data-driven innovation in shaping corporate strategy and economic growth. Investors are increasingly placing their bets on companies positioned to benefit from these shifts, and Nvidia is at the forefront of this trend, thanks to its dominance in the GPU market and its growing influence in AI hardware and software ecosystems.

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Elsewhere in the financial landscape, the decline in Treasury yields suggests that investors are still hedging against economic risks and maintaining some degree of caution. While equity markets are rallying, the bond market’s movements hint at a more cautious interpretation of the broader economic picture, particularly in light of ongoing trade tensions and questions about the sustainability of global growth.

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Meanwhile, the drop in the U.S. dollar suggests a return to risk-on behavior in global markets, as investors pivot toward equities and away from traditional safe-haven assets. This shift could continue if corporate earnings remain strong and geopolitical uncertainties — such as trade disputes and interest rate policy — remain in check.

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In summary, Nvidia’s solid performance has helped lift global stock markets, especially among tech names, while a U.S. court ruling on Trump-era tariffs added a fresh twist to an already volatile trade policy environment. Despite persistent uncertainties, investors responded positively, with stock futures climbing, Treasury yields slipping, and the dollar weakening — signs of growing optimism amid the ongoing economic and political drama.

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