Wall Street’s double boost: How a court ruling and Nvidia’s results sparked a rally

The sun had barely risen over New York when traders’ screens lit up green. Futures soared. The mood was electric. After weeks of uncertainty, Wall Street finally had something to cheer about. The catalyst? A surprise court ruling on tariffs and a tech giant’s stellar performance. By the time the opening bell rang, the story had already changed.

A court ruling changes the game

It started with a decision from the US Court of International Trade—one that sent shockwaves through the market. On Wednesday, a panel of three judges ruled that former President Trump had overstepped his authority by imposing sweeping global tariffs. The court called the move an “improper abdication of legislative power to another branch of government,” making clear that only Congress has the power to set trade policy on such a broad scale.

The tariffs, which reached as high as 50% on countries with US trade deficits and 10% on others, had rattled global commerce and stoked fears of inflation and recession. Now, with the ruling blocking these levies, futures jumped: S&P 500 E-mini futures climbed 1.5%, Nasdaq futures rose 1.8%, and the dollar gained against the yen and Swiss franc.

Market analysts were quick to weigh in. “It’s massive news. It’s long been suggested that the emergency powers Trump has used to implement tariffs were unconstitutional and that the power to enact tariffs sits with Congress,” said a senior market strategist quoted in The Economic Times. Att Simson, senior market analyst at City Index, added: “It seems unavoidable that the Supreme Court will need to get involved in this matter, making today’s announcement more of a temporary setback than a definitive outcome. Nonetheless, investors are currently enjoying a pause from the economic unpredictability they often dread”.

Early trading saw UnitedHealth, Boeing, Apple, and Visa all posting gains, while sectors previously hit by tariffs began to recover. Even as the legal process continues, the market’s message was clear: investors are ready to move forward.

Nvidia’s blockbuster quarter fuels tech optimism

Just as traders digested the court news, another headline hit: Nvidia had smashed expectations. The chipmaker’s latest earnings report wasn’t just good—it was historic. Revenue for the first quarter soared to $43.28 billion, up 66.2% from a year ago and well ahead of Wall Street forecasts. Most impressively, Nvidia’s data centre revenue surged 73% year-on-year, driven by relentless demand for AI and cloud computing chips.

“Nvidia is the poster child for the AI revolution,” said Gil Luria, technology analyst at D.A. Davidson, in a Reuters interview. “China will likely be the most significant variable influencing Nvidia’s quarterly performance”. The company’s results sent its shares up nearly 5% in post-market trading, lifting the entire technology sector.

Billy Leung, senior investment strategist at Global X ETFs, put it in perspective: “The tariff ruling is being treated more as a sentiment boost than a structural pivot. The court decision removes one tactical risk ahead of the July tariff timeline, which is the key clearing event. But positioning flows and sentiment metrics suggest investors are still trading cautiously”.

Meanwhile, the Federal Reserve’s steady approach to interest rates provided a calming backdrop. Policymakers kept rates unchanged and signalled a “wait-and-see” stance, giving markets room to breathe as they assessed economic data and global risks.

By midday, the rally was in full swing. Tech led the charge, but gains were broad-based. Even as new risks—like rising credit default swaps and visa crackdowns—made headlines, the day belonged to two stories: a courtroom and a conference room.

For investors, it was a reminder that markets can turn on a dime. One legal ruling, one earnings report, and suddenly, the outlook brightens. As the trading day rolled on, the message was clear: Wall Street, for now, is back in rally mode.

Disclaimer: The views and recommendations expressed above are those of individual analysts or brokerage companies, and not those of Winvesta. We advise investors to check with certified experts before making any investment decisions.