Wall Street closed higher on Thursday, driven by real estate and energy stocks. Investor mood was upbeat on a federal appeals court temporarily reinstating the most sweeping of Trump's tariffs. Earnings from a semiconductor giant also boosted morale. All three benchmark indexes closed the session in the green.

How Did the Benchmarks Perform?

The Dow Jones Industrial Average (DJI) added 0.3%, or 117.03 points, to close at 42,215.73. Twenty-two components of the 30-stock index ended in positive territory, while eight ended in negative.

The tech-heavy Nasdaq Composite gained 74.93 points, or 0.4%, to close at 19,175.87.

The S&P 500 rose 23.62 points, or 0.4%, to close at 5,912.17. Ten of the 11 broad sectors of the benchmark index closed in the green. The Real Estate Select Sector SPDR (XLRE), the Energy Select Sector SPDR (XLE) and the Utilites Select Sector SPDR (XLU) advanced 0.9%, 0.8% and 0.7%, respectively, while the Communication Services Select Sector SPDR (XLC) declined 0.8%.

The fear-gauge CBOE Volatility Index (VIX) decreased 0.7% to 19.18. A total of 18.65 billion shares were traded on Thursday, higher than the last 20-session average of 17.7 billion. Advancers outnumbered decliners by a 2.26-to-1 ratio on the NYSE, while on the Nasdaq, advancing issues led by 1.48:1.

U.S. Court of International Trade Lands a Blow on Tariffs

On Thursday, the U.S. Court of International Trade ruled that President Donald Trump had way surpassed his authority by imposing sweeping tariffs under the International Emergency Economic Powers Act (IEEPA) of 1977. The court found that the IEEPA does not grant the President the power to unilaterally impose such tariffs without Congressional approval, leading to a hold on these tariff impositions.

In response to this ruling, financial markets reacted positively. Major U.S. stock indices experienced gains as investors anticipated a de-escalation in trade tensions. The impact was global. Even the Indian stock market opened higher, reflecting optimism about improved U.S.-India trade relations and the potential for Indian exporters to benefit from a shift in global supply chains away from China.

However, the situation remains fluid. The Trump administration has appealed the decision, and a federal appeals court has temporarily allowed the continuation of tariff collection under emergency powers while the legal process unfolds. This continues to influence market dynamics and investor sentiment. However, on the day, market sentiment was good.

NVDA Earnings Lifts Markets

On Thursday, NVIDIA Corporation’s NVDA impressive earnings report significantly boosted investor confidence, emphasizing its pivotal role in the AI-driven environment. The company announced a 69% year-over-year revenue increase, reaching $44.1 billion, surpassing Wall Street expectations. The company, which came out with its report on Wednesday after hours, reported quarterly revenues of $44.06 billion, beating the Zacks Consensus Estimate of $42.9 billion.