CNBC Business News Update - Market Midday: Stocks Mixed, White House Appeals Tariff Block, Consumer Spending Slows In GDP Data 5/29/25

Episode Date: May 29, 2025

From Wall Street to Main Street, the latest on the markets and what it means for your money. Updated regularly on weekdays, featuring CNBC expert analysis and sound from top business newsmakers. Anchored by CNBC's Jessica Ettinger.

I'm Jessica Edinger CNBC Wall Street is mixed the down now falling 220 points a half percent is being led lower by shares of Salesforce which are plunging six and a half percent this afternoon. The S&P 500 index also turning lower it's down six points the NASDAQ is hanging on to the green it is still up five. Nvidia shares are soaring higher. They're up more than 4%. Companies whose shares have hit new record highs today include Olive Garden Parent, Darden Restaurants, Intuit, and Johnson Controls, which has been trading since 1940. A federal court ruling blocked President Trump from imposing

sweeping reciprocal tariffs on goods coming in from other countries. A three-judge panel of the US Court of International Trade said the Trump administration could not rely on emergency powers cited in many of his executive orders to assume quote unbounded tariff authority without input from Congress. The White House immediately appealed. Attorneys general from Arizona and Oregon led the legal challenge,

calling the tariffs an illegal abuse of power. We should note tariffs that were imposed using a different mechanism remain in place. The levies on imported cars, steel, and aluminum. We've already seen an appeal. There could be a stay. But for now, this ruling does imperil the president's efforts to use unbounded tariffs as

leverage in these trade deal negotiations ongoing with countries around the world. NBC's Alice Barr, U. S. Economic growth contracted in the first quarter for the first time in three years. It's the second look at the first quarter of the year, so we'll get more data, but the slowdown was less than expected. The important point to pull out of this is that there was a downward revision in consumer spending. This economy is a consumer driven economy.

That's the growth engine. It was 1.2% consumer spending in the first quarter, whereas we initially thought it was 1.8%. Just notable as we're trying to track the ins and outs of the consumer and just how much sort of weakness and slowness there is given the higher levels of uncertainty and some of the confidence surveys showing the consumers been shaken. That's CNBC's Sarah Eisen. More Americans filed for unemployment benefits last week than expected and well above the pre pandemic normal continuing claims. That's the number of people who are still collecting checks week after week.

That went up to the most in three years, suggesting it is taking people longer to find that next job. We now have our third 1.9 or higher. Yes, once again, 1,919,000. This is a third reading over 1.9 million since April of this year, and it would be the warmest levels that we've had basically since 21. CNBC's Rick Santelli. Chipmaker Nvidia shares are higher, beating Wall Street's top and bottom line expectations for the last quarter when it reported results after the closing bell last night.

Data center revenue soared more than 70% on AI demand. The CEO noted that the $50 billion China market is effectively closed to U.S. industry, including to NVIDIA. The world is going to adopt technology from one country or another, and we prefer it to be the American technology stack. NVIDIA CEO Jensen Wong on CNBC.

Chevron says it's cutting about 800 jobs in the Midland Texas region. The Scripps National Spelling Bee Finals are tonight live on ION. Jessica Edinger, CNBC.