After an early attempted rally fizzled out yesterday, the session shifted to a pause that could refresh, depending on financial results and guidance from Nvidia (NVDA) after the closing bell.

The session was never in jeopardy of slipping too much and, by the same token, there was scuttlebutt about a software ban on China.

Large-caps held up best and small-caps endured the largest declines.

Sector Performance

Profit-taking in Utilities (XLU) seems reasonable, considering how much hype surrounds them. Other beneficiaries of the Artificial Intelligence (AI) boom, Communication Services (XLC), Information Technology (XLK), and Industrials (XLI) held up well.

Treasury Auction

Better results from the 5-year note auction were a ‘sigh of relief,’ especially with indirect scooping up 78.4% of supply. A short duration is in favor, so the real test comes with the following ten-year auctions.

After the Close

Nvidia (NVDA) came through, and the stock immediately moved higher. The revenue beat was enormous: $39.1 billion against the consensus of $31.3 billion.

Today’s Session

Last night a federal court blocked many of the tariffs by the Trump administration.

Initially, I thought it might be politically motivated, and it could be, but two of the three judges were appointed by Republican presidents. It could still be political, but this makes it more intriguing, as it will no doubt head to the Supreme Court of the United States. 

The Tariff Path Ahead

Piper Sandler says SCOTUS will agree with the trade court.

Goldman says there are other tariffs methods including Sec 338 of the Trade Act of 1930.

There is no doubt in my mind the administration has Plans B, C, and X.

It would be best to conduct investing under the assumption of eventual 10% tariffs on everyone, except China, which could end between 20% to 50%.

Greed is Still Good

Comments

We are in a bull market now. Almost all signals are positive for the foreseeable future. Just saw a great chart on IBD that shows 5 year bull markets follow major inventions like Netscape years ago. The similarities between then and now are uncanny. Today it's NVDA and we are not even at 700 days from the start. Mike M on 5/29/2025 10:06:10 AM

I just wish I had a little money to invest Lorenzo on 5/29/2025 11:18:40 AM

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