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Investing.com -- Canada’s main stock index was gaining steadily after Thursday’s open, but promptly pared back gains. This follows the highly-anticipated earnings release of tech giant NVIDIA (NASDAQ:NVDA), as well as a blockage of U.S. President Donald Trump’s "Liberation Day" tariffs by a U.S. federal court.
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In short, the IEEPA act Trump used to implement the tariffs was deemed unfit, but the administration could use different laws to re-impose the tariffs. The administration has since appealed the ruling, which is expected to be overturned.
By 9:50 ET, the bellwether S&P/TSX 60 index was lower 1.5 points or 0.1% in trading.
Toronto’s S&P/TSX Composite was down 12.3 points or 0.05%, breaking even with yesterday’s gains.
Nvidia unveiled on Wednesday better-than-expected first-quarter results, but the chipmaker flagged an $8 billion hit to Q2 guidance from the U.S. ban on chip sales to China. Nvidia shares rose nearly 6% after market open, as fears over China exposure and AI demand were eased.
U.S. stocks jump
Trading in U.S. stock indexes jumped at open Thursday, as investors digested the tariff news and key earnings.
As of 9:55 ET, the S&P 500 rose by 34 points or 0.6%, the Nasdaq Composite jumped 183.5 points or 1%, and the Dow Jones Industrial Average was higher 127 points or 0.3%.
In yesterdays trading, the S&P lost 0.6%, the Nasdaq 0.5%, and the Dow 0.6%. The market was cautious in anticipation for the earnings and Federal Reserve minutes.
In other earnings, Salesforce Inc (NYSE:CRM) posted strong Q1 results and raised guidance, but shares fell on concerns regarding its recent acquisition of Informatica. The company has previously had troubles integrating acquisitions into its business software ecosystem.
U.S. GDP numbers also came in, revealing contraction in GDP by 0.2% annualized from January-March. The economy was initially estimated to have contracted at a 0.3% pace. It grew at a 2.4% rate in the fourth quarter.
Initial claims for state unemployment benefits rose 14,000 to a seasonally adjusted 240,000 for the week ended May 24, the Labor Department said on Thursday.
Crude Oil prices drop
Oil prices retreated Thursday, handing back earlier gains after data showed the U.S. economy contracted in the first quarter, suggesting the Trump administration’s volatile trade policies were weighing on economic activity.
By 10:10 ET, WTI Crude was down 1.8%, pricing in at $60.70 a barrel, while Brent Oil dropped 1.7% to $63.27 per barrel.
Oil was sitting on some gains this week after a devastating Russian attack on Ukraine sparked expectations of more U.S. sanctions, while the restriction of Chevron’s Venezuelan crude exports also pointed to tighter supplies.