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Indexes gain: Dow 0.12%, S&P 500 0.55%, Nasdaq 0.91%

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Best Buy ( BBY ) slumps after cutting annual sales, profit

forecasts

(Updates after markets open)

By Shashwat Chauhan and Kanchana Chakravarty

May 29 (Reuters) - Wall Street's main indexes rose on

Thursday after a federal court ruled against most of U.S.

President Donald Trump's tariffs and AI bellwether Nvidia ( NVDA )

reported a 69% surge in quarterly sales.

Nvidia ( NVDA ) jumped 5% after reporting

higher-than-expected quarterly sales growth, driven by customers

stockpiling AI chips ahead of U.S. export restrictions on China.

The company, however, warned that the new curbs are expected

to cut $8 billion from its current-quarter sales.

"We're in a secular growth trajectory here for AI, AI

investment, and everything seems to be lining up for the next

kind of multi-quarter expansion across AI," said David Russell,

global head of market strategy at TradeStation.

The Philadelphia SE Semiconductor index rose in the

wake of Nvidia's ( NVDA ) results, last up 1.4%.

Eight of the 11 major S&P 500 sub-sectors rose, with

information technology and consumer discretionary

being the biggest gainers.

Global risk appetite was boosted after a U.S. court

invalidated with immediate effect most of Trump's sweeping

levies imposed since January, but did not address some

industry-specific tariffs on automobiles, steel and aluminum.

"Even if the ruling is upheld, the administration will have

alternative routes to implement tariffs. But these will be

slower and more targeted, as opposed to the current sweeping

approach," said Lizzy Galbraith, senior political economist at

Aberdeen.

Kevin Hassett, the White House economic adviser, said three

trade deals were nearly done and he expected more despite the

judgment.

At 9:47 a.m. ET, the Dow Jones Industrial Average

rose 51.16 points, or 0.12%, to 42,149.86, the S&P 500

gained 32.60 points, or 0.55%, to 5,921.01 and the Nasdaq

Composite gained 173.41 points, or 0.91%, to 19,273.71.

Dow component Salesforce ( CRM ) weighed on the index,

with its shares slumping 5.4% even as the enterprise software

provider raised its annual revenue and adjusted profit

forecasts.

Apple ( AAPL ), which Trump threatened with tariffs last

week, rose nearly 1%. Tesla rose 2.2% and Amazon ( AMZN )

added 1.2% among megacap and growth stocks.

The S&P 500 is currently about 3% below an all-time high

touched on February 19, rebounding from a nearly 19% decline

earlier in April on easing trade tensions, strong earnings and

subdued inflation data that aided risk appetite.

May has been a solid month for equities, with both the S&P

500 and the Nasdaq on pace for their best monthly

performances since November 2023.

A second reading from the Commerce Department showed gross

domestic product contracted 0.2% in the first quarter.

Economists polled by Reuters had forecast a 0.3% contraction.

At least five Fed policymakers including Fed Board Governor

Adriana Kugler are scheduled to speak through the day.

In other earnings, Best Buy ( BBY ) dropped 7.5% after the

electronics retailer lowered its annual comparable sales and

profit forecasts amid concerns that U.S. tariffs would weigh on

consumer demand for big-ticket items.

Advancing issues outnumbered decliners by a 2.63-to-1 ratio

on the NYSE and by a 1.73-to-1 ratio on the Nasdaq.

The S&P 500 posted five new 52-week highs and no new lows,

while the Nasdaq Composite recorded 25 new highs and 23 new

lows.