Stock Market Summary – May 29, 2025

U.S. stocks were buoyant today with Dow Jones Industrial Average futures registering an upside of around 200 points, and S&P 500 and Nasdaq 100 futures rising approximately 1.1% and 1.6% respectively. This follows a federal trade court nullifying most of President Donald Trump’s “reciprocal tariffs”, which reversed abruptly shifting trade policies that rattled investors. Affected stocks rebounded, with Lululemon shares gaining 0.8% and Deckers Outdoor climbing roughly 2.6%.

In corporate news, Nvidia shares jumped 3% after reporting fiscal first quarter adjusted earnings and revenue that exceeded Wall Street predictions, despite sales disruption due to U.S. semiconductor export restrictions on China. E.l.f. Beauty shares leapt 22% after releasing earnings and revenue that surpassed analyst estimates. The cosmetics firm also plans to acquire Rhode, Hailey Bieber’s beauty brand, in a deal potentially worth up to $1 billion.

Several underperforming stocks were also noted. Shares of Salesforce, a customer relations management software maker, dipped 5% after RBC Capital Markets downgraded the stock amid potential acquisition risks. Additionally, electronics retailer Best Buy recorded a fall in its shares by over 9% due to missing quarterly revenue expectations and lower full-year sales and adjusted earnings per share projections due to tariffs. Finally, HP shares declined by 8% due to tariff-related disappointing third quarter guidance.

Elsewhere, the Trump administration criticized trade-court judges after they rejected the view that the president could enact a global tariff regime. The court’s decision temporarily blocked all of Trump’s tariffs, giving the administration some respite while they prepare to fight the case. The government has appealed the judgment and is seeking a pause in enforcing the ruling during the appeal process.

Meanwhile, Wells Fargo reported that the growing popularity of stablecoins among banks and payment companies could impact payments stocks as the administration rolls back on restrictive Biden-era crypto policies. They highlighted Mastercard and PayPal as two companies which have incorporated stablecoins into their strategy.

Finally, Federal Reserve Chair, Jerome Powell met with President Trump at the White House after the latter pressured for lower interest rates. The meeting’s outcomes suggest monetary policy will be determined by incoming economic data and the outlook, rather than politically motivated decisions.

Nvidia CEO Jensen Huang adopted a more somber tone during the recent earnings call, despite announcing strong earnings. Yet Nvidia shares were up about 4% and were about 8% short from its all time high.

Starbucks shares, however, fell around 2% to roughly $84 per share following a downgrade by TD Cowen from buy to hold. Year to date, the stock is down 7%. Despite TD Cowen’s cautious outlook citing high labor costs and slowing North American sales, CNBC’s Jim Cramer remains optimistic about Starbucks’ turnaround potential under the leadership of CEO Brian Niccol.

San Francisco-based health tech company Omada Health plans to go public with a market cap of up to $1.1 billion through an IPO, seeking to raise up to $158 million. Its shares are expected to be priced within a range of $18 to $20.

Salesforce shares decreased about 6% despite positive Q1 results and a raise in the company’s full-year guidance, largely attributed to increased strength in artificial intelligence. The slight miss on current remaining performance obligation growth for Q2 and a slight operating margin miss contributed to the post-earnings downturn.

Lastly, GE Vernova shares slumped by more than 3% following its downgrade to a hold from buy by Jefferies. Despite this, CNBC’s Jim Cramer views this as an investment opportunity for those seeking to establish an initial position in the stock.

Note: Without the original articles, accurate numbers for Dow, S&P, and Nasdaq cannot be provided. Additionally, no specific ‘main gainers or losers’ were mentioned in the given articles.