Asian stock markets and U.S. futures surged following a ruling by the Manhattan-based Court of International Trade that blocked President Donald Trump’s April 2 tariffs, which targeted imports from U.S. trading partners. The court deemed that Trump exceeded his authority by imposing these broad tariffs, providing relief to markets concerned about escalating trade tensions. In response, the White House quickly appealed the decision, signaling the dispute could reach the Supreme Court.
Market analysts highlighted the constitutional debate over whether tariff authority lies with the president or Congress. This ruling, while a setback for the Trump administration, offered hope that the highest tariff levels might be delayed or dropped, reducing uncertainty and boosting investor confidence. However, some legal avenues remain for imposing sector- or country-specific tariffs, meaning the final outcome is still uncertain.
The decision sparked gains in major Asian markets, with Japan’s Nikkei rising 1.7% and South Korea’s shares hitting a nine-month high. European futures also advanced, and U.S. equity futures climbed, supported further by strong earnings and revenue forecasts from chipmaker Nvidia. Despite these positive market moves, some tech stocks linked to semiconductor design services declined amid reports of U.S. restrictions on sales to China.
The dollar strengthened as safe-haven currencies like the Swiss franc and Japanese yen softened, reflecting increased risk appetite among investors. Treasury yields rose slightly, while expectations for near-term Federal Reserve rate cuts diminished amid inflation concerns partly tied to tariffs. Commodities saw mixed reactions, with gold prices falling and oil prices rising due to ongoing supply concerns and geopolitical restrictions.
Overall, the court ruling injected cautious optimism into global markets by challenging the scope of Trump’s tariff strategy, but the trade conflict remains unresolved. Investors and trading partners alike are watching closely as legal battles and policy decisions unfold, shaping the trajectory of U.S. trade relations and global economic stability.
Source: Reuters