In This Article:
Stocks worldwide are rising after a US court blocked many of US President Donald Trump’s sweeping tariffs.
The S&P 500 was 0.8% higher in early trading on Thursday. The Dow Jones Industrial Average was up 64 points, or 0.1%, and the Nasdaq composite was 1.4% higher.
Technology stocks led the way after Nvidia once again topped analysts’ expectations for profit and revenue in the latest quarter.
The gains were even bigger in Asia, where markets had the first chance to react to the ruling issued late on Wednesday. Japan’s Nikkei added 1.9%.
US Court of International Trade in New York found that the 1977 International Emergency Economic Powers Act, which Mr Trump has cited as his basis for ordering massive increases in import duties, does not authorise the use of tariffs.
The White House immediately appealed and it was unclear if Mr Trump would abide by the ruling in the interim. The long-term outcome of legal disputes over tariffs remains uncertain. But investors appeared to take heart after the months of turmoil brought on by Mr Trump’s trade war.
Nvidia shares jumped 6% in off-hours trading after the chipmaker and artificial intelligence bellwether delivered another quarter of robust growth despite tariff-driven turbulence.
Heading into its earnings announcement on Wednesday, Nvidia’s share price was right where it was at the beginning of 2025, before Mr Trump took office and started his tariff rollouts.
Nvidia’s earnings, along with the court’s tariff ruling, helped to propel other chipmakers and technology companies higher. Broadcom and Advanced Micro Devices each rose 3.1%, while Super Micro Computer jumped 4%. Apple and Amazon both rose about 2.5%.
A three-judge panel ruled on several lawsuits arguing Mr Trump exceeded his authority, casting doubt on trade policies that have jolted global financial markets, frustrated trade partners and raised uncertainty over the outlook for inflation and the global economy.
Many of Mr Trump’s double-digit tariff hikes – including the huge levies on China – were already paused for up to 90 days to allow time for trade negotiations. But the uncertainty they cast over global commerce has stymied businesses and left consumers wary about what lies ahead.
“Just when traders thought they’d seen every twist in the tariff saga, the gavel dropped like a lightning bolt over the Pacific,” Stephen Innes of SPI Asset Management said.
The ruling was, at the least, “a brief respite before the next thunderclap,” he said.
In Europe at midday, Germany’s DAX gained 0.4% and the CAC 40 in Paris jumped 0.8%. Britain’s FTSE was unchanged.