Blocked tariffs and an Nvidia earnings beat are sending stocks higher today

• Stocks gained on Thursday after a court blocked President Donald Trump's tariffs.
• The court is giving the Trump administration 10 days to comply with its order.
• Stocks also got a boost from Nvidia's first-quarter earnings beat.

US stocks climbed on Thursday after a federal trade court gave said President Donald Trump didn't have the authority to impose sweeping tariffs on imports.

Major indexes were higher, with the Nasdaq 100 climbing more than 1% as traders digested Nvidia's first-quarter earnings.

Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Thursday:

• S&P 500: 5,927.65, up 0.7%
• Dow Jones Industrial Average: 42,154.37, up 0.13% (+55.67 points)
• Nasdaq composite: 19,316.61, up 1.13%

In a ruling late Wednesday, the US Court of International Trade found that Trump did not have the power to impose tariffs on many of the US's trading partners. The ruling said it would give the Trump administration 10 days to comply with its order.

"It is not for unelected judges to decide how to properly address a national emergency. President Trump pledged to put America First, and the Administration is committed to using every lever of executive power to address this crisis and restore American Greatness," Kush Desai, a spokesperson for the White House, told Business Insider in an email.

Investors have been antsy all year about the potential impact of tariffs, which economists have said will raise costs for businesses that can be passed along to consumers.

Tariffs could also weigh on economic growth and keep interest rates elevated, as the Federal Reserve will be hesitant to lower borrowing costs to avoid stoking more upward price pressure.

Analysts say that uncertainty is still hanging over the market, despite the boost in sentiment.

"Yet the uncertainty premium remains very much alive. Every forthcoming court milestone carries the potential for fresh headlines," Ahmad Assiri, a research strategist at Pepperstone, wrote in a note on Thursday, pointing to anxieties over the growing US budget deficit.

"This after-hours rally reflected a swift change in sentiment as traders welcomed the prospect of reduced trade headwinds," David Morrison, a senior market analyst at Trade Nation, wrote in a note. "But investors should take care. Markets are extremely skittish at present and capable of big moves in both directions, as demonstrated by the overnight rally. This is not the slow and steady bull market that took off in October 2022."

Trump has incrementally scaled back the majority of his proposed tariffs, a move that the market has coined as the "TACO trade" in recent days. Many of the tariffs he announced on April 2 have been reduced to 10% for a 90-day period as trade negotiations take place. Tariffs on China have also been reduced to 30% on a separate 90-day timeline. A 50% tariff on the EU has been pushed out to July 9, which is when the pause on most of the Liberation Day tariffs expire.

Tech stocks were also on a tear on Thursday as traders took in Nvidia's latest quarterly earnings report. The chipmaker reported $44.06 billion in revenue, beating estimates. CEO Jensen Huang also soothed investors about the impact of restrictions on its business in China.

Nvidia shares rose about 6% to trade at $143.31. Other chipmakers also moved higher, with Advanced Micro Devices up 2% Taiwan Semiconductor Manufacturing Company up 1%.