Nvidia shares jumped on Wednesday after the chip giant reported its first-quarter earnings, beating analysts’ expectations. The company’s revenue rose 69% year-over-year to $44 billion, driven by growth in data centers. However, Nvidia also projected second-quarter sales below estimates due to tightening export controls in China that affect some of its AI chips.
The positive earnings report came after the US Court of International Trade ruled that President Donald Trump overstepped his authority on tariffs under the International Emergency Economic Powers Act (IEEPA). The ruling is seen as a setback for the president’s trade policies, which have been criticized by economists and businesses alike.
Meanwhile, Elon Musk announced that he is stepping down as the leader of DOGE, a government efficiency initiative aimed at cutting waste. Musk had previously led the effort, which has saved billions of dollars but has yet to reach its $2 trillion goal. Musk thanked President Trump for the opportunity to work on the initiative and expressed his gratitude to the team.
The news from DOGE comes as investors are watching Tesla closely, following rumors that Musk will return full-time to the EV maker after his departure from DOGE. The company’s stock has been volatile recently, with some shareholders growing impatient with Musk’s absence.
In other economic news, the number of Americans filing new unemployment claims rose more than expected last week, while the jobless rate appears to have picked up in May. Economists say that worker hoarding by employers is contributing to the jobs market, but there are also concerns about layoffs due to economic uncertainty and President Trump’s trade policies.
Overall, the latest developments in the US economy suggest that growth and hiring may be slowing down, despite some positive earnings reports from major companies like Nvidia. As investors wait for more information on Tesla’s future under Musk’s leadership, they will be watching closely for any signs of disruption or change.
Source: https://www.foxbusiness.com/live-news/nvidia-shares-jump-tariff-ruling-lifts-stocks-musk-departs-doge-live-updates