On Thursday, May 29, the U.S. stock market displayed mixed signals. While the Dow Jones Industrial Average declined, the Nasdaq surged, fueled by Nvidia’s exceptional earnings report. Meanwhile, a new court ruling on Trump-era tariffs introduced fresh uncertainty into U.S. trade policy.
Tech Rally Boosts Nasdaq Following Nvidia Earnings
As of 11:45 a.m. Eastern Time, the Dow Jones had fallen by 56 points, or 0.1%, sliding into negative territory. The S&P 500 was up by 0.3%, although it had given back part of its earlier gains. The Nasdaq, however, rose by 0.6%, reflecting investor optimism in the tech sector.
The primary driver of the Nasdaq’s rise was Nvidia’s outstanding financial report, which exceeded market expectations. The company’s impressive performance in AI and GPU technology acted as a strong catalyst for the broader tech sector, drawing significant investor interest.
Court Ruling on Trump-Era Tariffs and Global Market Reaction
In a significant legal development, the U.S. Court of International Trade ruled that the tariffs imposed during the Trump administration under the “International Emergency Economic Powers Act of 1977” exceeded legal limits. This decision has injected a new layer of uncertainty into U.S. trade policy.
Markets in Asia reacted positively to the news. Stock exchanges in Tokyo and Seoul opened with gains of around 2%, as investors interpreted the ruling as a potential sign of easing trade tensions.
Dow Jones Technical Analysis
A look at the hourly chart of the Dow Jones Industrial Average reveals several key observations:
The index declined after the market opened, dropping to the short-term support level around 38,100.
Despite the initial selling pressure, a bullish RSI divergence and reversal candlestick patterns at this level suggest a possible recovery attempt.
The next significant resistance lies between 38,400 and 38,500. A breakout above this zone could shift momentum in favor of the bulls.
If the 38,100 support fails, the index may decline further toward the 37,800 area.
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