Nvidia led the S&P 500’s increase on Thursday. However, investors were cautious after a barrage of legal developments involving President Donald Trump’s “reciprocal” tariffs, which limited advances.

The broad index rose as much as 0.9% during the day, but ended the day up 0.4% at 5,912.17. At 19,175.87, the Nasdaq Composite rose 0.39%, well behind its peak intraday gain of 1.5%. To end at 42,215.73, the Dow Jones Industrial Average gained 117.03 points, or 0.28%.

On Wednesday evening, the U.S. Court of International Trade declared that Trump had overreached himself in enforcing his “reciprocal” tariffs. The court mandated the revocation of the contested tariff orders.

However, shortly after the ruling, the Trump administration filed a notice of appeal, and on Thursday afternoon, an appeals court reinstated the levies. The administration stated that if necessary, it might request a halt to the federal court’s initial decision from the Supreme Court as early as Friday.

Markets were agitated last month by Trump’s inconsistent tax policies and inflation concerns stoked by the possibility of tariffs. When lowering their projections, several businesses have also cited the levies and mentioned the ambiguity around trade policy and the effect on consumers.

Larry Tentarelli, the creator of the Blue Chip Daily Trend Report, stated that markets often dislike ambiguity since it makes predicting more challenging. “We anticipate a lengthy tariff news cycle, which may result in increased short-term volatility.”

Following earnings, Nvidia rises However, Nvidia’s stock offered

Nevertheless, Nvidia’s stock contributed to market momentum by rising by over 3%. The chipmaker’s data center division saw a 73% year-over-year gain in the first quarter, exceeding both top and bottom line projections.

James Demmert, chief investment officer of Main Street Research, stated that Nvidia’s impressive report “can rejuvenate investor optimism across the board and help investors to focus on the power of AI and less on headlines out of Washington on tariffs and taxes.”

It appears like the major U.S. indices will end the week and month higher. While the tech-heavy Nasdaq gained 2.3% this week, the S&P 500 and 30-stock Dow are up 1.9% and 1.5%, respectively.

The S&P 500 has increased 6.2% this month. The Nasdaq has surged over 10%, while the Dow has increased 3.8%.