‘Reciprocal’ tariffs in limbo as U.S. court steps in

U.S. President Donald Trump has been accused of walking back on his trade policies — a Financial Times columnist succinctly described that apparent pattern as the “TACO” theory, or “Trump Always Chickens Out.”

The walk-backs on tariffs has largely been a positive for markets. Now, a federal court has struck down his “reciprocal” tariffs — the same that were put on hold by Trump — lifting U.S. futures.

Markets in extended trading were already buoyed by Nvidia’s sales figure in the January quarter. The chipmaker posted a 73% surge in revenue from its data center division, which includes artificial intelligence chips and other related components.

Overall revenue jumped 69% to $44.06 billion from $26 billion a year earlier — and would have been even higher if not for restrictions on exports to China, Nvidia said.

In other words, demand for AI chips is still booming, despite worries about companies not needing as many advanced chips and corporations spending less because of uncertainty caused by tariffs.

It doesn’t seem that chip export restrictions to China will enjoy that same policy wobbling faced by tariffs, since those rules, in the White House’s view, are more a matter of national security than “negotiation” — which was how Trump characterized his tariff moves.

In any case, there could be much less deal-making for Trump to do if the courts keep reining in his policies.

Trump ‘reciprocal’ tariffs stuck down
A U.S. federal court ruled Wednesday that President Donald Trump exceeded his authority with his reciprocal tariffs, dealing a blow to a major tenet of the president’s economic agenda. “The Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs,” the judges wrote.

Nvidia posts revenue jump despite China curbs
Nvidia first-quarter earnings beat LSEG estimates. Earnings per share came in at 96 cents adjusted, higher than 93 cents expected, while revenue was $44.06 billion — juiced by a 73% year-on-year jump in revenue from Nvidia’s data center division — which beat the $43.31 billion forecast. Export restrictions to China, however, are weighing on Nvidia. “The H20 export ban ended our Hopper data center business in China,” CEO Jensen Huang said.

‘Negotiation,’ not backing out: Trump
Trump on Wednesday pushed back against the “TACO theory.” It describes a pattern which Trump announces new tariffs, sending markets tumbling, and then later pauses or lightens them, causing markets to rebound. When asked by CNBC about the term, Trump said his  moves are “called negotiation.”

Markets fell ahead Nvidia earnings
U.S. stocks slipped Wednesday. The S&P 500 lost 0.56%, the Dow Jones Industrial Average dropped 0.58% and the Nasdaq Composite gave up 0.51%. Yield on the 30-year Treasury briefly touched 5%. The pan-European Stoxx 600 index slid 0.61%. Automaker Stellantis closed 2.2% lower after the owner of Jeep, Dodge, Fiat and more named North American chief operating officer Antonio Filosa as its new CEO.

Elon Musk is ‘disappointed’ with Trump’s bill
Elon Musk, who is spearheading the U.S. government’s Department of Government Efficiency, was found by a federal judge Tuesday to exercise “significant authority” without “proper appointment” by Congress. On Wednesday, Musk on X thanked Trump “for the opportunity to reduce wasteful spending.” Separately, Musk said he was “disappointed” with Trump’s tax bill, stating it “increases the budget deficit, not just decrease it, and undermines the work that the DOGE team is doing.”

Tesla investors want Musk to work more
In news regarding Musk’s original full-time job, Tesla investors on Wednesday wrote a letter to Robyn Denholm, the board chair, demanding Musk to work a minimum of 40 hours per week at the automaker as a condition of any new compensation plan they may arrange for him. Tesla’s “declining sales” and “a plummeting global reputation are cause for serious concern,” the group of pension fund leaders wrote.

[PRO] Bond yields might still pressure stocks
Higher bond yields on Wednesday appeared to help put a damper on the stock market’s strong start to the week, with the 30-year Treasury yield pushing back toward the 5% level as the S&P 500 stalled. Analysts are warning the bond market could experience more ruction, which would put a lid on any stock rally.

The U.S.′ AI love affair with the UAE isn’t just about access — it’s about dominance

Deep in the oil-rich deserts of the Middle East, the United Arab Emirates is on a mission to establish supremacy in the field of artificial intelligence.

Seven thousand miles across the planet, the United States, led by President Donald Trump, wants American firms to dominate the global AI race.

While their goals may be separated by continents, their ambitions are strikingly aligned. The U.S. currently makes the world’s most advanced semiconductor chips, while the UAE and neighboring Gulf countries have the abundant, cheap energy needed to power enormous AI data centers.