Trump Tariff Court Blocking Boosts Wall Street, Nvidia Surges/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Wall Street rallied Thursday after a federal court blocked many of President Trump’s sweeping tariffs. Nvidia led tech stocks upward, and global markets reacted positively despite lingering uncertainty. The ruling lifted investor sentiment, though key trade and economic risks remain.
Tariff Ruling Boosts Wall Street: Quick Looks
- Court Blocks Key Trump Tariffs: A U.S. court ruled against tariffs imposed under the 1977 emergency powers act.
- Nvidia Fuels Tech Rally: Nvidia’s strong earnings helped push the S&P 500 higher by 0.6%.
- Global Markets React: Japan and South Korea’s markets surged nearly 2% in response.
- Tariff Uncertainty Lingers: The White House appealed the ruling; other tariffs remain in place.
- AI & Beauty Stocks Shine: C3.ai and E.l.f. Beauty posted double-digit gains on strong earnings.
- Best Buy Falls Despite Profits: Weak revenue and a cautious outlook dragged the stock down.
- Bond Yields Dip: Mixed economic data led Treasury yields slightly lower.
Deep Look: Tariff Ruling Sparks Market Rally, But Uncertainty Remains
Stocks climbed Thursday morning after a significant legal ruling dealt a blow to President Donald Trump’s wide-ranging trade strategy. A federal court blocked many of the administration’s tariffs, lifting investor optimism — particularly in tech stocks — though questions linger over long-term trade policy.
Court Ruling Blocks Trump’s Emergency Tariffs
In a closely watched decision, the U.S. Court of International Trade ruled that President Trump had overstepped his authority under the 1977 International Emergency Economic Powers Act. The act was cited to justify broad global tariffs, including the controversial “Liberation Day” tariffs and a 10% universal levy on imports.
While the decision doesn’t touch Trump’s tariffs on steel, aluminum, and automobiles (which are enforced under other statutes), it significantly raises the bar for the administration to enact further sweeping trade measures. The White House has filed an appeal and signaled it will take the matter to the Supreme Court if necessary.
Markets Respond — Especially Tech
The S&P 500 rose 0.6%, inching closer to its all-time high, while the Nasdaq gained 0.9% and the Dow Jones added 80 points (0.2%). The reaction was even more dramatic in Asia, where Japan’s Nikkei 225 and South Korea’s Kospi both jumped 1.9%, driven by relief from the tariff news and local stimulus efforts.
Leading the U.S. market was Nvidia, which posted stellar quarterly earnings and surged 4.9%. The semiconductor giant continues to benefit from intense demand for AI chips, reinforcing its status as a pillar of the tech rally.
Software company C3.ai soared 29% after beating earnings forecasts and securing a lucrative contract expansion with the U.S. Air Force. In the beauty sector, E.l.f. Beauty surged 27.8% following news it acquired Hailey Bieber’s skincare line, Rhode, in a $1 billion deal.
Not All Winners: Best Buy and Mixed Economic Signals
Not every stock celebrated. Best Buy fell 7.8%, despite beating profit estimates, due to weaker-than-expected revenue and a cautious full-year forecast. CFO Matt Bilunas cited tariff uncertainty as a key reason for trimming the company’s financial outlook.
Meanwhile, bond yields edged lower. The 10-year Treasury slipped to 4.44%, and the two-year yield fell to 3.94%. This came after mixed economic data: a revised report showed the economy shrank slightly less than expected in Q1, while new jobless claims rose slightly.
Cautious Optimism as Uncertainty Looms
While markets cheered the tariff setback, analysts cautioned that Trump still has tools to impose trade penalties under other laws — notably Section 232 and Section 301 of the Trade Expansion Act.
“It’s not the end of tariffs, but the bar is now higher,” said Brian Jacobsen of Annex Wealth Management.
White House economic officials acknowledged the limits of the ruling but insisted it won’t derail Trump’s trade goals. “We haven’t backed down before, and we won’t now,” said one insider.
Global investors remain wary. European markets were more muted, with France’s CAC 40 rising 0.1% and Germany’s DAX dipping 0.2%, reflecting uncertainty over how the ruling will affect trade negotiations and broader market sentiment.
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