Off the back of the latest earnings report released on Wednesday, US chip-maker Nvidia’s shares shot up over 4% in after-hours trading as the company reported an almost 70% increase in quarterly revenues year on year. This was despite US restrictions on sales to China, as the reported revenue of $44.1bn over the quarter beat analyst estimates of $43.3bn; Nvidia anticipates revenues of $45bn for the current quarter, as it indicated that its guidance for the period ahead does take into account an expected loss of revenue from China of $8bn due to President Trump’s tariff plans. The shares opened up 5.5% on Thursday, before ending the day at 3.2%.
US chip-maker Nvidia’s shares shot up over 4% in after-hours trading as the company reported an almost 70% increase in quarterly revenues year on year.
Also on Wednesday, a US court ruled that the President’s tariffs are illegal, and that he did not have the authority to use the International Emergency Economic Powers Act to impose them. However, shortly after this ruling the US Court of Appeals for the Federal Circuit granted a temporary stay on the tariff ban. Asian stocks fell on Friday off the back of the news, and although the S&P500 and Nasdaq initially rose, both closed down 0.4% on Thursday.
Asian stocks fell on Friday off the back of the news, and although the S&P500 and Nasdaq initially rose, both closed down 0.4% on Thursday.
Despite the court’s ruling, EU and US trade negotiators are still scheduled to meet next week in Paris. Although the 10% blanket tariff may be removed, the 25% levy on cars, steel, and aluminium is still in place, following Trump’s call with European Commission President Ursula von der Leyen last Friday which saw him pause the 50% blanket tariff he had planned to impose. However, the EU should still focus on trying to get sectoral tariffs down; although the court ruling has bought some breathing room for full negotiations, a lot can happen in a short space of time in the current environment!
Our specialist's final thought
"Although the 10% blanket tariff may be removed, the 25% levy on cars, steel, and aluminium is still in place, following Trump’s call with European Commission President Ursula von der Leyen last Friday which saw him pause the 50% blanket tariff he had planned to impose."
Please contact a member of the MHA Wealth team for further guidance on portfolio options.
Contact the teamMHA Wealth is the trading name of MHA Wealth Ltd, a company registered in England (1916615) with registered office at The Pinnacle, 150 Midsummer Boulevard, Milton Keynes, MK9 1LZ.
MHA Wealth is authorised and regulated by the Financial Conduct Authority (FCA) with registered number 143715 and is a member of the London Stock Exchange.
This communication is for general information only, is a marketing communication, and is not intended to be individual investment advice, a recommendation, tax, or legal advice. The views expressed in this article are those of MHA Wealth or its staff and should not be considered as advice or a recommendation to buy, sell or hold a particular investment or product. In particular, the information provided will not address your personal circumstances, objectives, and attitude towards risk.
This information represents our understanding at the time of publication of current law and HM Revenue & Customs practice. Tax assumptions and reliefs depend upon an investor’s particular circumstances and may change if those circumstances or the law change. You are therefore recommended to seek professional regulated advice before taking any action.
MHA Wealth is a member of the MHA group. Further information on the MHA group can be found at https://www.mha.co.uk/about-mha-group.
