Business Rundown: NVIDIA Soars & China Trade Tensions Flare
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I'm Taylor Riggs, and this is the Fox Business Rundown. Friday, May 30th, 2025. After a decision this week from the U.S. Court of International Trade to block much of President Trump's Liberation Day tariffs, the market celebrated. But a Thursday appeal ruling now says those tariffs can stay until they settle this in court.

painting some uncertainty ahead for investors and Americans alike. I don't think you should just have this three-judge panel in Manhattan trying to direct trade policy of the United States. When did we elect those three judges to try to create trade policy in the United States? Many investors are trying to decipher what these back-to-back court decisions mean for the market. Initially, markets saw modest gains following the news.

NVIDIA's Thursday's earnings report as well certainly helped bring the S&P 500 higher as the chipmaker announced that they beat on the first quarter revenue. While the news was mostly positive, CEO Jensen Wang warned investors that tariffs and AI chip export restrictions were affecting their bottom line. He said the $50 billion China market is effectively closed to us.

And this week, Elon Musk is leaving his position in the federal government, but the work at Doge will continue, targeting what they say is fraud, waste, and abuse in our federal spending. For Musk, he will be heading back to the business world to manage his companies with his trademark hands-on approach. On X, he posted, saying, Back to spending 24-7 at work and sleeping in conference server factory rooms. I must be super focused on X,

XAI, and Tesla. Stocks mostly lower today, though, on fresh news that the U.S.-China trade tensions are ramping up. President Trump saying that China has, quote, totally violated its agreement with the U.S. and announcing on True Social, quote, no more Mr. Nice Guy. All right, Kenny. So was it last Friday, a week ago, where we dropped the bomb on the EU tariffs?

And markets sold off a little bit. And so it's another Friday, another minor sell-off day. This time Trump comes out on True Social and is talking about how he felt like he saved China. But now, of course, not surprisingly, he says China has totally violated its agreement with us.

so much for being Mr. Nice Guy. The market's selling a little bit, two-tenths of 1%, one-half of 1%. So we're not down major. But again, it's sort of a market that is jittery, especially when it comes to trade with China. And it should be jittery, right? Because there's so much uncertainty, which is what causes the markets to be anxious and jittery. Kenny Pulcari is Slate Stonewealth's Chief Market Strategist. I'm pleased to say he joins me now.

it's interesting that you know last friday was the eu to your point the market sold off went into the weekend uh it was a long weekend right now this again it's friday again going into a weekend where he makes these negative comments kind of about uh or these or these confrontational comments concerning china i'm actually surprised the markets are down a little bit more on this news but

But part of me is beginning to think that the market is not going to fall for it again, that, you know, it's part of his rhetoric, it's part of his style, and that, you know, they'll end up coming to the table. I know Scott Besson got up and he said, you know, that they're a bit stalled. He didn't say they were completely stalled or that it's over.

He just said it's a bit stalled. They need to come to the table. So I think that's kind of what's holding the markets without letting the markets get really anxious. - My only concern is I was looking at inbound containers from China to the US and they're back down below liberation day. - Right.

And that might just be the way it's going to go. Trump said, listen, it is hurting their economy for sure. And I'm not necessarily so concerned about that because I think that that's going to push those conversations to have to happen. And in the end, that'll be a good thing. Yeah, we're rooting for our economy. Right. Listen, it's okay to renegotiate trade deals that are decades old. The world changes, things change. And so they have to

to be renegotiated. I have no problem with renegotiating the trade deals. Now, we could talk about how they're renegotiating them and his style, but I have no problem that they're being renegotiated. So one thing that we always talk about is markets hate uncertainty more than anything. So yesterday we had a court come out, a three panel judge that said, IEPA, the use of the International Trade Court said you can't use that for tariffs.

Those are overturned. But then Trump appealed to an appeals court and the appeals court said the tariffs can stay while we're going through this process. To me, that feels like uncertainty because we just don't know. But am I reading that

wrong? No, no, not at all. It is completely uncertain because here you have this three-judge panel here in lower Manhattan that says, yeah, you can't use it, throws it into complete turmoil, which, by the way, does a couple of things. When that three-judge panel came out and said that, it kind of sends a message to the countries that you're negotiating with is that, look,

The court's going to take his power away so we don't have to be so anxious to run to the table. I think that's the wrong message. I think that's completely the wrong message, which then creates this uncertainty. Now, the appeals court immediately reinstated them and said, you know, until we work through this process, the tariffs can stay. I think they're right.

I don't think you should just have this three-judge panel in Manhattan trying to direct trade policy of the United States. When did we elect those three judges to try to create trade policy in the United States? So I think they've overstepped their bounds, but I'm also not a lawyer.

What is surprising to me is the resilience of these markets, despite one trade deal. That's with the UK. How do we... Is this just a market that wants to go up? How is this market still rising, even though I haven't heard from India? I haven't heard from South Korea. I haven't heard from Japan. Because I think the market is sensing that those countries are not confrontational, India, South Korea, and Japan, that they want to kind of come to the table and get this over with. Look, I think it was India that...

came out and said, look, we'll do zero tariffs a couple of weeks ago, right? While it hasn't happened yet, I think the market is sensing that those countries are not confrontational. And I also don't think that the market thinks that the EU is confrontational. But remember, the EU isn't a single country. The EU is 27 countries, which is why, and I made that point in my note on Monday morning, that it's not just

the United States negotiating with a single country like India or Japan, they have to negotiate with 27 individual countries. So that's going to be a much more complex issue.

One that I think we can do, but one that is not going to, you know, at the snap of a finger is going to get done. And the EU isn't necessarily known for its speed when it comes to moving and moving quickly. Although Ursula von der Leyen, right, the EU commissioner, did promise that she would try to fast track it to, you know, to get this done. But yes, to your point, they haven't been known for speed. And again, it's 27 countries, so they all operate at their own pace.

I want to talk more about these markets, particularly with Elon Musk. Doge, it's May 30. And so it's sort of the end of his 130-day period at Doge. And a lot of people thought, okay, he got a couple hundred billion dollars, but it's not the trillion or the two trillion. That said, it's a good start, but we need to codify it to make sure that we do him justice. Basically, he gave up a lot. He gave up personal freedom. He gave up

market cap, billions of dollars in market cap of his company. Of his own wealth. Reputational risk. Right. Are we doing him enough service? I don't think so because I think that they should, to your point, they need to, he identified all this waste. It,

They need to make it happen. They need to call it back. They need to show that all the time he spent away from his own businesses was not just a waste of time, that he found whatever the number was, $2 billion, $200 billion, whatever the number was, while it might have been lower maybe than what the original estimates were. And I think it's...

I think there's actually much more there for him to have found. But I think it got really nasty as we're moving along. And to your point, he's got reputational risk, he's got physical risk, right? People physically calling him out. And so I think we just need to codify at least what he found and start to have that process happen.

this mean for his companies? I was looking at the share price of Tesla. We're around 360 share right now. It's been almost a full round trip from October, the election where we rode the wave higher and then a huge drop due to the reputational risk, some of the fundamentals around Tesla and now trying to climb its way back. So I think that it will look. Tesla is more than just a car company. I think it's a technology company. I think there's so much more going on there,

Right. I think he's brilliant. Yeah. Now, I do think part of the reason that the stock took a hit was because people were angry. There's a whole bunch of people that were angry at him for doing, you know, joining the team and doing the dosing and identifying the cuts. Why they were angry about that is beyond me. But I think, you know, that they stamped their feet and they said, well, we'll punish him by taking it out on a stock.

Now, I hope now he's going to go back to business, right? He's going to go back to run those businesses. He's stepped away from the government and he's going to fully commit again. And I think that, you know, the stock price is fine. I think it will rebound. And I think he will once again take control and make things happen. Look, you can't argue. He's a genius. Look at all the other companies, SpaceX, Neuralink, Boring Company.

Right. Look at all. Look at what he's done. Right. And now they were saying this morning on the show that I think it's Norlink that's close to getting a product that's going to allow blind people to see. Think about that just for one minute. Yeah. Incredible. What that would do for, you know, people that are blind in this country and really around the world.

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broader speaking though there's been and you you brought this up with tesla it's not a car company it's ai it's autonomous it's robo taxis but there's been a lot of competition waymo is already out on the road when it comes to san francisco uber had a partnership with them in austin now tesla um and elon musk i think this week said they're coming out they're looking at trying to get about 10 of those model y robo taxis out in austin early june instead of late june but

Are they a clear leader? Because to me, I see still a lot of competition. No, I think there's a ton of competition. And actually, competition is good. It's not that competition is bad. There should be competition. So I'm not at all phased by it. I think that it's going to be interesting to see

how his taxi performs, right? Versus the other taxis. It's also a whole different style of taxi, which I think in and of itself is going to cause people to go, oh my God, I want one of those. I want to ride in a robo-taxi. So no, I think the competition is great and I look forward to it. I look forward to see how this works out. Are you a shareholder in NVIDIA? I am.

Okay, so for our audience, I just want to take a minute. NVIDIA continues to blow me away. Kenny, I want to point out a statistic to you and see if you disagree, where NVIDIA said in the second fiscal... Okay, so first of all, they're beating on most all metrics despite losing business in China. I read by one estimate, had they not had the H20 chip banned in China, they would have beat April numbers by $3 billion. Right.

So they come out and they say we're going to lose about $8 billion in revenue in the second fiscal quarter because of the ban on chips to China. Right.

$8 billion sounds like a lot, but this company's pulling in $44 billion a quarter. And that $8 billion is more than AMD's entire quarterly revenue. It's more than ARM's entire quarterly revenue. And these are companies to me that I thought were sort of nipping at the heels. Like if you want an alternative to an NVIDIA, it's an AMD, it's an ARM.

They're like not even second place. NVIDIA is like running laps around them. So explain to me if you're not a shareholder yet, but you want to be or you are and you're riding this wave. How do you even put NVIDIA into perspective? Listen, I think NVIDIA is one of those names like Apple that changed the world. NVIDIA has...

that it is changing the world. And I think you just have to jump onto that bandwagon. Look, I own it. I own it. My average price is much lower than where it's trading now, which doesn't mean I won't continue to buy it. I'm just not going to buy it when it's running away. I'll buy it when it pulled back there in April. It was a perfect opportunity to add to it. Even though it raised my average price, I was buying it on weakness, not on strength, right? I would say to anybody, if you're not in it yet,

you have to have some exposure. So if you decide if it's not Nvidia you're going to buy, although I think it's a mistake you should, because it's only going higher from here. Look, he talked about in his earnings call, exponential growth going forward in this whole AI field. And they stand right at the nexus of it. So at some point, you've got to jump in. If you don't own it, jump in. Don't jump in with everything you've got. Buy a little bit and wait. See how it acts. And then build your portfolio around that. But...

He did say something that we had a good argument, not a bad argument on our show yesterday, a healthy disagreement, I would call it, about the way he views business in China. And we had Kevin O'Leary, Mr. Wonderful, on our program yesterday. And NVIDIA...

I'm probably talking their book as any good CEO should, said we need to be in China because if it's not us, it's Huawei. 100%. And he's benefiting from, I think, a very good administration's goal from going into the UAE. So we need basically every ally in every country running on American-made AI chips so that China doesn't go in. That's right. And that was the point he made.

Why would I want to export Nvidia chips to China when they break the chips apart, steal the technology, reverse engineer, and then shut us out of the market and come up with their own chips anyways? Settle that debate for me. Well, you know, it's interesting. It's interesting. Even if they do that, uh, uh,

are countries and companies going to go to China and still buy their products? Are they going to step over Nvidia to buy the Chinese-made product? I'm not so sure countries will. Because you don't know what China is adding to those products in terms of spyware and all that stuff, right? And so while they do it, and they do it in everything, right? Look at your phone, look at the TVs now, all that stuff, right?

is that I think Nvidia has to be there because it is part of the global economy and they shouldn't necessarily be shut out. But look,

You can't prevent what China's gonna do. I never trusted China or anything they do. I don't invest in China. And I think there's way too many other places to invest. But to your point, China's gonna do it anyway. I just think that to Chens and Huang's point, we wanna be the one that's blazing the trail. We want all these other countries to be using American-made products.

In the AI space. Okay, well said. A few minutes left. I want to end on something fun. Sneak peek for our radio audience out there. My producer came to me and she said, maybe starting next week, we want to do a thing where you pick a stock or a sector or something that you're going to watch all summer long. And I want to use, I want to pick your brain because my co-anchors,

are also maybe going to pick a stock or a sector and we're going to track each other and I want to beat them. I immediately, I'm pretty boring, I went to NVIDIA. I'm like, all right, AI, I'll watch NVIDIA from now for the next three months. Talk to me in September and I'll argue that NVIDIA will be higher in September than it will be today. Is there another fun under the radar stock or sector that you're tracking or following right now that maybe we're not talking about? I would say ASML.

Okay. ASML is in the same space, except it's a European name. Now, and that's a Dutch chip maker. That's right. Okay, explain to our audience. It's a Dutch chip maker, but they have the patent on their lithography, the way that they manufacture some lithography. Okay. Right? And I think it's under the radar. We don't talk about ASML a lot because it's a Dutch company, right? Right. But I think you've got to keep your eyes on ASML. Oh.

I think it's a name. If I'm in that race, put that under my name. Oh, okay. You're giving me lots to think about over the weekend. Well, because you know why? Because everyone's going to say NVIDIA. I know. Everyone's just going to say NVIDIA. And NVIDIA is probably a safe bet. It probably is going to be higher at the end of the year. But if you want like a different name, I would choose ASML. Okay. It's so hard for me to not pick an American company. Okay. Well, if you want to pick an American company, does it have to be an American company? No. No.

It could be global. I mean, I could pick like the Middle East MSCI Middle East Stock Index, which I'm sure is on a tear after all the AI. I mean, we can we I could pick anything. I so. Well, you could also pick Palantir. Palantir is another great name. Great. And if our audience has any ideas, they can X at me at at Briggs Report. Tag Kenny and he and I will have an awesome debate. Kenny, this was really fun. I really appreciate it. Thank you. And to you as well.

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