Dow, Nasdaq, S&P 500 rise as investors cheer Nvidia earnings, weigh tariff legal whiplash

US stocks moved higher on Thursday as markets assessed Nvidia's earnings report as well as more tariff uncertainty.

In late afternoon trade, a federal appeals court allowed President Trump's sweeping tariffs to temporarily stay in effect, a day after the US Court of International Trade blocked their implementation after deeming the method used to enact them "unlawful."

That means Trump's tariffs will remain in effect for now.

The benchmark S&P 500 and tech-heavy Nasdaq Composite closed up about 0.4% each, while the Dow Jones Industrial Average climbed around 0.3% as investors continue to debate Trump's next move in trade policy. All three major averages had retreated from their highs of the day early in the session.

Nvidia stock rallied over 3% after its first quarter revenue topped estimates. Investors appear to be looking past the AI chipmaker's warning that it expects to miss out on $8 billion in sales in the second quarter, thanks to US restrictions on exports to China.

Overall, Nvidia's performance on Wednesday boosted hopes on Wall Street that Big Tech can weather Trump's far-reaching trade policy.

Meanwhile, Best Buy cut its full-year guidance citing economic uncertainty around those tariffs, sending its stock lower. Eyes are now on Costco's after-hours report, given the difficult position retailers find themselves in: Trump told Walmart to "eat" price hikes associated with new duties following its latest results.

On the economic front, filings for unemployment aid jumped more than expected last week. And in a slight upgrade from the initial reading, the Commerce Department said GDP shrank at a 0.2% annualized pace in the first quarter.