The S&P 500 slipped slightly by 0.34% this week, reflecting a cautious tone despite solid tech earnings and major legal developments that stirred the macro narrative. With the tariff threat cooling and earnings still robust in certain pockets, investors are recalibrating their short- to medium-term outlooks.
On Thursday, May 29, the U.S. Court of Appeals for the Federal Circuit blocked President Donald Trump’s proposed 50% tariffs on EU imports, citing “clear overreach of executive trade powers.” That brief sigh of relief was short-lived. A day later, a broader 12-judge panel from the same court granted a temporary reprieve, allowing tariffs to proceed while the case is litigated.
At a press conference later, Trump grew visibly irritated when asked whether the term TACO trade, short for Trump Always Chickens Out, aptly described his tariff approach. “That’s a nasty question,” he snapped. The phrase refers to a market pattern where stocks tumble on tariff threats, only to bounce when Trump backs down. While humorous to some, the outburst raised new fears that an angry Trump may double down, fueling market volatility ahead of the July 9 tariff deadline.
On the macro side, Bitcoin dropped after hitting $112,000, which some see as a warning sign for the stock market in the short term. While the long-term outlook remains bullish thanks to subsiding trade risks, the near future still feels a bit uncertain.
BBVA strategists noted that nearly $7 trillion remains parked in U.S. cash funds, signaling ample dry powder once conditions turn favorable. If macro stability returns, that could be a major tailwind for equities.
Weekly Earnings Roundup: Surprises & Misses
Several major companies released their earnings last week, including NVIDIA (NASDAQ: NVDA), Costco (NASDAQ: COST), Salesforce (NYSE: CRM), Dell (NYSE: Dell), and Royal Bank of Canada (NYSE: RY).
Salesforce (NYSE: CRM) was in the spotlight after announcing its acquisition of Informatica for $8 billion. While the company beat earnings estimates, it also warned of slowing growth ahead. Investors seemed unsure about the big price tag and the direction of the deal, which caused the stock to dip.
NVIDIA (NASDAQ: NVDA) once again beat expectations, pushing its shares up 5.5% in after-hours trading. The company remains one of the strongest players in the AI space and continues to draw investor confidence.
ULTA Beauty (NASDAQ: ULTA) crushed earnings, beating estimates by more than 15%. The stock jumped 17% as strong in-store sales and steady demand drove solid performance, along with improved guidance for the upcoming year.
Costco (NASDAQ: COST) reported a small earnings beat of 0.9%, but that was enough to keep its steady growth trend going. Thanks to its membership model and strong customer base, Costco is handling inflation better than Walmart and Target.
Top Gainers
Seagate (NASDAQ: STX) was among the top gainers this week, with the company’s share rising by 5%. The share price is on a hot streak, with shares up nearly 30% over the past month. Growing demand for AI and cloud storage continues to fuel demand for storage. Analysts from Morgan Stanley and Citi have raised their price targets on the company, pointing to long-term growth potential.
Top Losers
Pinduoduo (NASDAQ: PDD) shares dropped nearly 20% after the company missed earnings estimates by over 37%. Its very low P/E ratio of 1.29 reflects how many investors are worried about the risks of investing in China, especially with the current political and regulatory uncertainty.
HP Inc. (NYSE: HPQ) fell 12% after an earnings miss and weak guidance for the rest of the year due to ‘added cost’ from tariffs. The demand for PCs remains low, and the company is facing pressure on its profit margin.
Upcoming Earnings: Key Stocks to Monitor
The current week includes earnings announcements from major companies such as CrowdStrike (NASDAQ: CRWD), Dollar Tree (NASDAQ: DLTR), Broadcom (NASDAQ: AVGO), Lululemon Athletica (NASDAQ: LULU), DocuSign (NASDAQ: DOCU), and GameStop (NYSE: GME).
With markets on edge, this week’s earnings could act as a reality check. The upcoming tariff deadline also looms large, and any developments on that front could either lift sentiment or trigger a fresh wave of selling.